MARKET POTENTIAL FOR SMART GRID
TECHNOLOGY IN THAILAND AND VIETNAM
www.efficiency-from-germany.info
Imprint
Authors
Annex Power
January 2013
Publisher
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
On behalf of the
German Federal Ministry of Economics and Technology (BMWi)
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Web: www.efficiency-from-germany.info
This report is part of the Project Development Programme (PDP) South-East Asia. PDP South-East Asia is implemented by the Deutsche
Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry of Economics and Technology
(BMWi) under the “energy efficiency – Made in Germany” initiative. More information about PDP and about energy efficiency markets
in South-East Asia can be found on the website www.giz.de/projektentwicklungsprogramm.
This publication, including all its information, is protected by copyright. GIZ cannot be liable for any material or immaterial damages
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All contents were created with the utmost care and in good faith. GIZ assumes no responsibility for the accuracy, timeliness,
completeness or quality of the information provided.
Content
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Executive Summary
Task of the study
1. Background
2. Objectives
3. Tasks of assignment
Introduction to Smart Grid
1. Smart Grid – meaning, necessity, potential, impact, and requirements
2. Existing Smart Grid Definitions and Technologies
3. Global Smart Grid development and demonstration projects
Energy Situation in Thailand – Key Challenges of the Countries Energy System
1. Overview about Energy Situation and Energy Market
1. Primary Energy Consumption
2. Electricity Generating Capacity and Consumption
2. Relevant Energy Institutions
1. Provincial Electricity Authority (PEA)
2. Metropolitan Electricity Authority (MEA)
3. Electricity Generating Authority of Thailand (EGAT)
4. Energy Regulatory Commission of Thailand (ERC)
5. Department of Alternative Energy Development and Efficiency (DEDE)
6. Energy Policy and Planning Office (EPPO)
7. Independent Power Producer (IPP)
8. Small Power Producer (SPP)
9. Very Small Power Producer (VSPP)
3. Energy Related Policies
1. Power Development Plan
2. Thailand’s 20-Years Energy Efficiency Development Plan (2011-2030)
3. Power Purchase Agreement (PPA)
4. Pricing Structure
5. Demand Side Management
6. Ten Years Alternative Energy Development Plan (Year 2012 – 2021)
Smart Grid Activities in Thailand
1. Smart Grid Policy/Activities by Governmental Institutions
1. Energy Policy and Planning Office (EPPO), Ministry of Energy
2. Provincial Electricity Authority (PEA)
3. Metropolitan Electricity Authority (MEA)
4. Electricity Generating Authority of Thailand (EGAT)
5. PTT Public Company Limited
6. Additional Smart Grid Activities
2. Objectives to Develop Smart Grid Market in Thailand
3. Results from Interviews
4. Issues/Barriers for Smart Grid Deployment in Thailand
Energy Situation in Vietnam
1. Overview about Energy Situation and Energy Market
1. Vietnamese Energy Market
2. Vietnamese Energy Infrastructure
2. Relevant Energy Institutions
1. Ministry of Industry and Trade (MOIT)
2. Electricity Regulatory Authority of Vietnam (ERAV) - Ministry of Industry and Trade
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
3. Vietnam Electricity (EVN)
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4. Institute of Energy (IE), Ministry of Industry and Trade
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5. Ministry of Planning and Investment (MPI)
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6. Ministry of Information and Communication (MIC)
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3. Relevant Energy Policies and Regulation
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1. Development of the Vietnamese Electricity Market - Decision Number 26/2006/QD
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2. Construction of Infrastructure Systems - Resolution No. 13-NQ/TW
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3. Resolution No. 16/NQ-CP 2012 on action plan to implement the Resolution 13-NQ/TW
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4. Technology Development Strategy of EVN to 2015, with vision to 2025
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7. Smart Grid Activities in Vietnam
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1. Smart Grid Policy / Activities by Governmental Institutions
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1. Decision 1208/QD-TTg - Approving the National Electricity Development Master Plan
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2. Circular No. 12/2010/TT-BCT - Structuring of the Electricity Distribution System
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3. Proposal on Roadmap of Smart Grid Development in Vietnam
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2. Current Smart Grid Activities/Projects in Vietnam
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1. TOU meter program
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2. Research program load (Load Research)
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3. Project "10-Years Road Map for Smart Grid Distribution in Vietnam"
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4. Project SCADA/ EMS
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5. Project Installation of Electronic Meters
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6. Electric Vehicles in Tourism and Large Cities
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3. Future Pilot Programs and Projects
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1. Program 1: Improvement of Operational and Managerial Efficiency of the Power Grid
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2. Program 2: Installation of AMI Infrastructure
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3. Program 3: Encouragement of Customers’ Participation in Energy Usage Management
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4. Program 4: Integration of Renewable Energy
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5. Program 5: Green Transportation
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4. Conditions for Smart Grid Market Development in Vietnam
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5. Main Results from the Interviews with relevant institutions in Vietnam about Smart Grid development 76
1. Governmental Institutions
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2. Utilities and Related Companies
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3. Technology Suppliers
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6. Issues/barriers for Smart Grid Deployment in Vietnam
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1. Technical
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2. Financial
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3. Political
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8. Basic Commercial Rollout Scenario
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9. Identified / Undeveloped Business Opportunities in Smart Grid in Thailand
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1. Identified application areas and sub-technologies for Smart Grid systems for short to mid-term prospects
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1. Substation and distribution automation
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2. Advanced metering infrastructure and communication
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3. Utility Enterprise Applications
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4. Micro-grid systems
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5. Electric vehicle charging stations
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2. Identified concrete investment plans by PEA
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10. Identified / Undeveloped Business Opportunities in Smart Grid in Vietnam
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1. Identified application areas and sub-technologies for Smart Grid systems for short to mid-term prospects
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1. Wide area monitoring and control
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2. Information and communication technology integration
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ii
3. Renewable and distributed generation integration
4. Transmission enhancement
5. Distribution grid management
6. Advanced metering infrastructure
7. Electric vehicle charging infrastructure
2. General opportunities
3. Concrete investment plans
1. 110kV/22kV Smart Distribution Substation (Da Nang City)
2. Grid automation in Khanh Hoa Province
3. Project Installation of electronic meters of EVNCPC:
4. Integration of renewable energy in EVNCPC
5. Micro-grid systems in remote islands
6. Electric vehicle charging stations
11. Recommendations
1. Matrix for Smart Grid Opportunities in Thailand
2. Matrix for Smart Grid Opportunities in Vietnam
3. Recommendations for Concrete Opportunities
1. Thailand Demonstration Project 1:
2. Thailand Demonstration Project 2
3. Vietnam Demonstration Project 1
4. Vietnam Demonstration Project 2
5. Vietnam Demonstration Project 3
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
List of Tables
Table 1: PEA Smart Grid Phase I
Table 2: Example Hardware and Software System, per Technology Area [1]
Table 3: Smart Grid maturity levels and development trends [1]
Table 4: Comparison of the new AEDP and the old REDP [15]
Table 5: PEA’s 3 stage Smart Grid implementation plan [9]
Table 6: Road Map of Smart Grid Development in Vietnam: Stage 1
Table 7: Road Map of Smart Grid Development in Vietnam: Stage 2
Table 8: Road Map of Smart Grid Development in Vietnam: Stage 3
Table 9: Smart Grid opportunities under the TOU meter program
Table 10: Smart Grid opportunities under the research program
Table 11: Smart Grid opportunities under the 10 years road map for Smart Grid distribution
Table 12: Smart Grid opportunities under the SCADA/ EMS project
Table 13: Smart Grid opportunities under the EVNCPC installation project
Table 14: Smart Grid opportunities for electric vehicles
Table 15: The priority of the various targets of Smart Grid development in Vietnam [17]
Table 16: PEA Smart Grid Phase I – Smart Grid Development
Table 17: PEA Smart Grid Phase I – AMI Development
Table 18: PEA Smart Grid Phase I – Micro – Grid Development (Mae Hongson Province)
Table 19: PEA Smart Grid Phase I – Micro – Grid Development (Trad Province)
Table 20: Smart Grid Opportunities in Thailand – Offering Institution: PEA (continuation on next page)
Table 21: Smart Grid Opportunities in Thailand – Offering Institution: MEA
Table 22: Smart Grid Opportunities in Thailand – Offering Institution: EGAT
Table 23: Smart Grid Opportunities in Vietnam – Offering Institution: EVN
Table 24: Smart Grid Opportunities in Vietnam – Offering Institution: ERAV
Table 25: Smart Grid Opportunities in Vietnam – Offering Institution: EVNHCMC
Table 26: Smart Grid Opportunities in Vietnam – Offering Institution: EVNCPC
Table 27: Smart Grid Opportunities in Vietnam – Offering Institution: KHPC
Table 28: Smart Grid Opportunities in Vietnam – Offering Institution: DPC
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List of Figures
Figure 1: Core Smart Grid concept – marrying ICT with Power Systems [3I]
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Figure 2: Mapping Technologies onto Power System Domains [1]
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Figure 3: Detailed Technology-Domain Mapping for Thailand and Vietnam [(Annex Power)]
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Figure 4: Iterative, Incremental Process of Smart Grid Development [1]
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Figure 5: Primary energy consumption in Thailand in 2010 ( Numbers: [6], Graph: [Annex Power])
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Figure 6: Shares of fossil fuel and renewable energy in total primary energy in 2010 (Numbers: [6] Graph: [Annex
Power])
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Figure 7: Energy consumption by sectors (Numbers: [6], Graph: [Annex Power])
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Figure 8: Energy intensity for Thailand compared with other countries and world average [4]
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Figure 10: Thailand electricity installed capacity in 2011(Numbers: [6], Graph: [Annex Power])
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Figure 9: Projection of energy consumption during 2010-2030 [5]
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Figure 11: Comparison of energy sources for electricity generation to national grid in 2011 (Numbers: [6], Graph:
[Annex Power])
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Figure 12: Monthly peak demand in 2009, 2010, 2011, 2012. [7]
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Figure 13: Thailand Energy Related Institutions Overview [8]
Figure 14: Alternative Energy Development Plan [14]
Figure 15: PEA Smart Grid [16]
Figure 16: Three stages for Smart Grid implementation [16]
Figure 17: Evolution of Vietnamese power capacity & demand from 2006-2009 [17]
Figure 18: Power Development Plan [17]
Figure 19: Shares of energy by owners and sources (Data taken from [19])
Figure 20: Roadmap of energy market development [17]
Figure 21: Vietnamese national grid [22]
Figure 22: Vietnamese energy related organizations
Figure 23: The vertical-integrated structure of Vietnamese Energy Sector [17]
Figure 24: Strategy of Energy development to 2025 [24]
Figure 25: Key scenario characteristics [32]
Figure 26: The Cost-benefit analysis on new electrical technologies [24]
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Currency
1 USD =
1€
=
29,79 THB (January 2013)
40,6578 THB (January 2013)
1 USD =
1€
=
20815 VND (January 2013)
28408,6256 VND (January 2013)
Measurement
W
kW
MW
GW
Watt
Kilowatt
Megawatt
Gigawatt
Wp
kWp
MWp
GWp
Watt peak
Kilowatt peak
Megawatt peak
Gigawatt peak
Wh
kWh
MWh
GWh
Watt hour
Kilowatt hour
Megawatt hour
Gigawatt hour
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
List of Acronyms
ABC
Aerial Bundled Cable
AEDP
Alternative Energy Development Program
AFA
Automatic Fault Analysis
AMI
Advanced Metering Infrastructure
AMR
Automatic Meter Readers
ATS Ltd
Applied Technical Systems Ltd.
BAU
Business as Usual
BO
Business Opportunities
BST
Bulk Supply Tariff
CIS
Customer Information System
CMIS
Content Management Interoperability Services
CPC
Central Power Company
DCS
Distribution Control System
DEDE
Department of Alternative Energy Development and Efficiency
DEP
Distribution Efficiency Project
DG
Distributed Generation
DMS
Distribution Management System
DNP3
Distributed Network Protocol, version 3
DPC
Danang Power Company
DSM
Demand Side Management
EEDP
Energy Efficiency Development Plan
EERS
Energy Efficiency Resource Standards
EGAT
Electricity Generating Authority of Thailand
EMS
Energy Management System
EPPO
Energy Policy and Planning Office
ERAV
Electricity Regulatory Authority of Vietnam
ERCR
Energy Regulatory Commission of Thailand
ERI
Energy Research Institute of Chulalongkorn University
ESCO
Energy Service Company
EU
European Union
EV
Electric Vehicle
EVN
Vietnam Electricity Corporation
EVNCPC
EVN Central Power Company
vi
EVS
Electric Vehicles
FDIR
Fault detection, isolation, restoration
Ft
Fuel Adjustment Charge
G2V
Grid-to-Vehicle
GDP
Gross Domestic Product
GIS
Geographic Information System
GIZ
Deutsche Gesellschaft für Internationale Zusammenarbeit
GTAI
Germany Trade and Invest
HHU
Hand-Held Unit
HV
High Voltage
HVAC
High Voltage Alternate Current
HVDC
High-Voltage Direct Current
ICCP
Inter-Control Center Communications Protocol
ICT
Information and Communication Technology
IE
Institute of Energy
IEA
International Energy Agency
IEC
International Electrotechnical Commission
IPP
Independent Power Producer
ISGF
India Smart Grid Forum
ISGTF
India Smart Grid Task Force
IT
Information Technology
JICA
Japan International Cooperation Agency
KfW
Kreditanstalt für Wiederaufbau (Reconstruction Credit Institute)
KHPC JSC
Khanh Hoa Power Joint Stock Company
KMITL
King Mongkut’s Institute of Technology Ladkrabang
KPI
Key performance indicators
LTE
Long Term Evolution
LV
Low Voltage
MDMS
Meter Data Management System
MEA
Metropolitan Electricity Authority
MIC
Ministry of Information and Communication
MOIT
Ministry of Trade and Industry
MPI
Ministry of Planning and Investment
MV
Medium Voltage
MWM
Mobile Workforce Management
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
NEPC
National Energy Policy Council
NESDB
National Economic and Social Development Board
NPC
Northern Power Company
NPT
National Power Transmission Company
OMS
Outage Management System
PDP
Power Development Plan
PEA
Provincial Electricity Authority
PECC1
Power Engineering Consulting Join Stock Company
PMU
Phasor Measurement Units
PPA
Power Purchase Agreement
PTT
Public Company Limited
PV
Photovoltaic
R&D
Research and Development
RD&D
Research, Development, and Demonstration
RE
Renewable Energies
REDP
Renewable Energy Development Plan
RMU
Remote Monitoring Unit
RTU
Remote Terminal Unit
SAS
Automated System Control Station
SCADA
Supervisory Control and Data Acquisition
SME's
Small and Medium Enterprises
SOP
Standard Offer Program
SPC
Southern Power Company
SPCG
Solar Power Company Group
SPP
Small Power Producer
SPS
Special Protection Scheme
TEBA
Thai – European Business Association
TFEC
Total Final Energy Consumption
THB
Thai Baht
TOU
Time of Use
US
United States of America
USD
US Dollar
V2G
Vehicle-to-Grid
VAR
Reactive Power
VCGM
Vietnam Competitive Generation Market
viii
VN
Vietnam
VND
Vietnamese Dong
VSPP
Very Small Power Producer
WAAPCA
Wide-Area Adaptive Protection, Control and Automation
WAMS
Wide Area Monitoring System
WMS
Workforce Management System
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
1. Executive Summary
Background and Objective
The Southeast Asian region with its high electricity rates and further potential for economic growth is facing
massive challenges implementing a reliable, efficient, and modern electricity and power supply that can cope with
the fast rising energy and electricity demand in its countries. Thailand and Vietnam are now highlighted within
Southeast Asia, since they are among the heaviest energy consumers in the Region with predicted high rates of
increasing energy demand. Both countries are already reacting to this development, as witnessed by their ambitious
plans and promotion activities covering energy efficiency as well as renewable power supply.
The overall objective of the market analysis and recommendations is to identify target market segments and subtechnologies that allow at first commercial-scale demonstration and, in the long term, large-scale deployment of
modern and reliable Smart Grid technologies in Thailand and Vietnam. Concrete opportunities for commercialscale demonstration- and pilot-projects identified and outlined in the study are meant to demonstrate the potential
cost savings through the deployment of Smart Grid technologies and their positive impacts on energy security, and
to position German companies as key technology and service providers in that area.
After an introduction to the Smart Grid topic (Chapter 3) the study firstly describes the key energy challenges for
Thailand’s power system and looks into the on-going Smart Grid activities in Thailand (Chapter 4-5). For this
purpose personal interviews with all major stakeholders were held. Next, the study describes the key energy
challenges for Vietnam’s power system and the on-going Smart Grid activities in Vietnam (Chapter 6-7). Again,
personal interviews with all major stakeholders were held. After outlining basic commercial rollout scenarios
(Chapter 8) the study focusses on identified application areas and sub-technologies for Smart Grid systems for
short to mid-term prospects in Thailand and Vietnam (chapter 9-10). Finally, in Chapter 11 of the study some initial
ideas for “demonstration projects” are outlined as recommendations.
This study on Market Potential for Smart Grid Technology in Thailand and Vietnam has been conducted in the
frame of the „Energy Efficiency – made in Germany “ initiative by the German Federal Ministry of Economics and
Technology (BMWi). The BMWi has commissioned the German - Bilateral Chambers of Commerce (AHKs) and the
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH to jointly implement the initiative’s
regional activities in South-East Asia. The „Energy Efficiency – made in Germany“ initiative aims at sharing
knowledge and technology and creating business partnerships and sector-specific networks between German and
South-East Asian companies and business associations in order to join forces to maximize project opportunities in
the field of energy efficiency. The GIZ is implementing these activities through its “Project Development
Programme” (PDP).
Situation for Smart Grid Deployment in Thailand
Currently four aspects, which are hindering the actual development of the Smart Grid, were mentioned in almost
every interview:
1. Lack of knowledge and willingness on the private side, as seen in many countries where Smart Grid is
currently deployed;
2. Missing regulations and a missing common Smart Grid plan including budget regulations;
3. Unwillingness of the industries due to unknowns and non-existent key performance indicators (KPI’s);
4. Lack of expertise and undeveloped technologies for Thai and Vietnamese infrastructure, relative to the
situation in many countries where Smart Grid is currently deployed.
All interviewees pointed out that a realization of a Smart Grid will only be possible if the following factors are in
place:
■
further education of the private sector
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
■
clear KPI’s
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benefits for industrial utilities
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benefits for the private sector
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common Smart Grid plan, including regulations by the government
These factors will have to be implemented by demonstration projects and business opportunity research. Experts
and business cooperation will be needed to bring the know-how to Thailand in order to build up sufficiently trained
experts and technicians.
Another important factor is data security. Currently, concerns and public discussion regarding data security are still
limited due to the lack of interest and knowledge in Smart Grid. Official regulations should however be prepared
and try to implement regulations before these concerns grow and may cause additional problems.
Current Installations and Applications in Thailand
Supervisory Control and Data Acquisition (SCADA), which is considered as one of the major means for remote
communication and control, has been installed and utilized in Thailand for a long time. The state owned
Metropolitan Electricity Authority (MEA) has used SCADA for the acquisition of information between stations and
the central control room. The system has been revised and updated three times. PTT Public Company limited, the
state owned oil and gas company that is also involved in electricity generation, has also transferred information
from its natural gas valve stations through SCADA.
As a power distributor mainly for the Bangkok region, MEA acquires electric power mainly from the Electricity
Generating Authority of Thailand (EGAT). It also gets a small amount of power from Small Power Producers (SPPs)
and Very Small Power Producers (VSPPs), and distributes the power to its customers. MEA has been using an
Energy Management System (EMS) to analyze power flow and contingency on the supply side, which is planned to
be revised with inclusion of standard communication protocols like DNP3 and ICCP for communication between
MEA and the Provincial Electricity Authority (PEA), the state owned power distributor for over 97% of Thailand’s
provinces. Substation automation, which includes communication through an intranet and fiber optic lines in
compliance with IEC 61850, is gradually being installed for MEA’s substations, at a rate of 10-20 substations a year.
On the distribution side, a Distribution Management System (DMS), which enables remote control of feeders,
medium voltage load break switches, and manages distribution transformers and the supply of medium voltage
customers, is installed. For efficiency and operation improvement 8,000 units of Automatic Meter Readers (AMR),
which communicate through fiber optic lines, are being procured for installation for time-of-use (TOU) customers.
It is planned by MEA to procure and install 23,000 more AMR units next year.
Planning for Future Installations in Thailand:
PEA has had its Smart Grid roadmap completed by the Energy Research Institute (ERI) of Chulalongkorn
University, and has announced three stages of implementation. Stage I, running from 2012-2016, is scheduled to be
used for planning and pilot projects. The planned pilot projects include automated electricity networks or microgrids to support Smart Grid and electricity storage, smart meter infrastructure, smart offices, energy management
systems, and real time power trading (buy or sell from/to different suppliers). Stage II, 2017-2021, will expand the
pilot scale projects into large-scale facilities, i.e. asset management, a Mobile Workforce Management (MWM)
system, substation automation, automated networks covering major cities, development of renewable energy (RE)
and energy storage, Advanced Metering Infrastructure (AMI) deployment, applications for electric transportation,
community lighting, and bundled services, such as common billing, etc. Stage III, 2022-2026, is the ultimate stage,
which is supposed to enable nationwide automated electricity networks, large renewable energy resource
integration, balance of energy production and utilization, and intelligent two-way power supply of electric vehicles.
A series of investment of 10, 40, and 65 billion Baht is planned for the tree stages respectively.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Independently from PEA’s roadmap, the Energy Policy and Planning Office (EPPO) has engaged the Energy
Research Institute of Chulalongkorn University to prepare a plan for Smart Grid application. State enterprises like
EGAT, PEA, and MEA require EPPO’s endorsement for their investments. The plan, which will be completed in
mid-2013, will provide strategies and guidelines for future investment and Smart Grid promotion. In addition,
EPPO has also granted financial support to the energy research group at King Mongkut’s Institute of Technology
Ladkrabang (KMITL) for a pilot project to transmit customers’ information from their power meters through a 3G
mobile telephone system to the center. The information is useful for energy efficiency improvement.
As well, the topic of constructing high voltage direct current (HVDC) transmission systems in order to enhance
transmission quality and reduce losses is presently being widely discussed by the utilities and is about to play a role
in Thailand.
The Thai-European Business Association (TEBA) is currently developing a Smart Grid development plan for
Thailand in cooperation with the Senate of Kingdom of Thailand. For that reason TEBA started to set up a “Smart
Grid – Round Table”, showing the significance of the topic in Thailand.
Main Barriers for further Smart Grid Deployment in Thailand:
1. Unavailable National Smart Grid Plan: Some of the utility providers and private companies are hesitant to
invest in Smart Grid facilities, as there has not been a firm official policy of Smart Grid. This hesitation will
most likely remain until the middle of 2013, when EPPO’s Smart Grid road map will be finalized. However,
some utilities like PEA and MEA have decided to invest already in certain parts of Smart Grid systems to
improve their operational efficiency.
2. Electricity Tariff Structure: The electricity tariff in Thailand is rather low compared with those in other
countries. This has been a governmental policy to keep the electricity tariff at a low level and to subsidize
electricity costs for some income classes. The low tariff will restrict the utilities’ income and in turn will not
encourage further investments, as the investments will require longer periods of time to be paid back.
3. Renewable Energy Promotion Programs: Although Smart Grid facilities are meant to accommodate the
variable electricity levels supplied by renewable energy, Smart Grids are designed for type and size specific
renewable power plants. The promotion of renewable energy power needs to be carried out in parallel with
the design of the Smart Grid systems to achieve the maximum efficiency of both the renewable energy
power plants and the smart systems. It seems that the renewable energy electricity generating plants are
promoted under the Alternative Energy Development Program (AEDP), for which DEDE is responsible,
while the Smart Grid roadmap is under EPPO’s responsibility as mentioned earlier. While drafting the road
map, it is hoped that EPPO will take full acknowledgement of the AEDP in order to avoid conflicts during
implementation and to accommodate the renewable energy plan, since it has already been developed and
announced.
4. Communication and Compatibility among Different Utilities’ Facilities: Communication among utilities is
one of the key factors for success in Smart Grid applications. EGAT is viewed as the main generator, while
PEA and MEA are the transmitters and distributors of electricity. The overall efficiency of the system
requires good communication among the parties involved. With communication compatibility, real time
communication, monitoring, and control can be achieved and hence the efficiency can be improved. The
designs of facilities of different utilities should be done in compatibility with each other, in order to make
the exchange of information among utilities’ substations possible. Moreover, connectors in electric vehicle
charging stations must be versatile and usable with all brands of vehicles.
5. Investments from Private Sectors: Most of the Smart Grid related facilities included in the plan are
relatively costly because they are equipped with automation and modern communication, which allows
two-way communication as well as remote monitoring and control. These instruments can be justified for
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
investments only in large and medium businesses, whose revenues and sales margins are large enough to
compensate the cost increments. In fact, one of the large businesses expressed its concerns for positive
return prior to deployment of the Smart Grid technology. For small businesses whose revenues are
comparatively low and households where additional expenses are difficult to justify, the high cost of
instruments and meters will be unaffordable. The cost of an AMR unit is rather high and can be a burden to
small customers, and perhaps even more difficult to justify if the units are required for all customers.
6. Coordination among Stakeholders: Energy related organizations in Thailand include the generators
including EGAT, Independent Power Producers (IPPs), SPPs, and VSPPs. The installations and
implementations of Smart Grid facilities involve almost all related organizations. Not only do the
compatibility of Smart Grid design for all parties’ facilities and the efficiency of the system matter, but the
coordination of all related parties is also a significant factor for successful system operation. EPPO will have
to take the position to lead the process of planning, design review, and coordination of all parties.
7. Human Capacity Development: Smart Grid systems mainly include hardware and software systems for
supply, transmission, and distribution of electricity. The operation and maintenance of these systems are
crucial in the later phase. Human capacity development to ensure operation and maintenance resources
has to be planned and implemented in parallel with other activities. There are specific courses in Smart
Grid offered in many renowned universities in other countries. Smart Grid system suppliers also offer
training for operation and maintenance.
The know-how transfer could also be realized by setting up cooperation projects with industry experts and
so called “round tables” between industries, governmental institutions and educational institutions.
Situation for Smart Grid Deployment in Vietnam
The next part of the study focuses on key energy challenges for Vietnam’s power system and looks into the on-going
Smart Grid activities in the country. For this purpose personal interviews with all mayor stakeholders in Vietnam
were held.
The Vietnamese electricity market is still under development, and will be transformed in the next ten years to a
competitive energy market in three stages:
■
Level 1 (2005-2014): the competitive electricity market
■
Level 2 (2015-2022):the competitive wholesale electricity market
■
Level 3 (from 2022): the competitive electricity retail market.
The expected total investment of the power industry until 2020 is approximately 929,700 billion VND (equivalent
to 48.8 billion USD), averaging 4.88 billion USD annually. During 2021-2030, the estimated total investment is
expected to be 1,429,300 billion VND (75 billion USD).
According to the Electricity Regulatory Authority of Vietnam (ERAV) and the Institute of Energy (IE), “in the
context of Vietnam, Smart Grid should be described as technologies for grid automation and optimization for low
loss”. It includes distributed generation with renewable energy and advanced metering infrastructure”. Among
Smart Grid technologies, the focused technologies in Vietnam will be:
1. Automation of substations, SCADA/DMS system;
2. Smart metering for large customers; and
3. Integration of renewable energy source into the national grid.
The introduction of Smart Grid in Vietnam is expected to bring economical, political, environmental and technical
benefits:
4
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
■
Economical: First to reduce the pressure on the investment for constructing new power plants and second
to encourage customers on saving energy;
■
Political: Distributed generation and integration of renewable energy will guarantee energy security and
limit energy import;
■
Environmental: Conserving fossil resources and environment protection;
■
Technical: Since Smart Grid integrates advanced ICT infrastructure, it is the platform to deploy
applications to enhance reliability, manage power cuts, and improve power quality.
However, at present, the deployment of Smart Grid in Vietnam faces various barriers such as:
■
Low public awareness;
■
Large investment required;
■
Lack of expertise and independent high quality consultant, who is not affected by foreign technological
providers, so that the chosen technologies will be future-proof and not soon be obsolete;
■
No clear policies from Vietnam Electricity Corporation (EVN) and Ministry of Trade and Industry (MoIT).
■
The Vietnamese grid infrastructure is not well designed and financed, thus it has combined equipment
from many vendors, which are not fully compatible;
■
Acquiring large Smart Grid investment poses a challenge to the government since it could have broad effect
on the whole society due to increasing electricity prices.
In order to encourage Smart Grid deployment in Vietnam, the following activities need to be undertaken:
1. Propose on the basis of recent data and studies to the MOIT to issue a comprehensive legal framework to
support Smart Grid in VN;
2. Invest in SCADA for central and regional operating and control centres to optimize the grid and minimize
losses and blackouts;
3. Deploy smart meters to create a platform for new smart applications on the grid;
4. Integrate distributed generation and renewable energy, and pilot green transportation;
5. Consulting to EVN and its member companies on setting up "systematic tenders" for upcoming
investments that allow more coherencies among sub-technologies in (smart) grid infrastructure, in order to
obtain future-proof scalable SG solution and avoid future system incompatibleness.
6. Consulting and knowledge exchange on the development and deployment of new energy technologies.
Governmental agencies, such as Japanese JICA, are pushing this market to promote their technology companies.
For raising public awareness, Smart Grid demonstrations in the following areas could be helpful:
1. A pilot in upgrading obsolete substations to Smart Grid technology;
2. Energy efficiency, smart meters, smart buildings;
3. Electric vehicles (EVs) in large and tourism cities.
According to DPC (Danang Power Company) and PECC1 (Power Engineering Consulting Join Stock Company), at
this period, Smart Grid deployment should be focused in substation automation and smart meters for large
customers, which will show immediate benefits.
Concerning Germany’s role in the Vietnamese Smart Grid market, case studies of German power companies who
successfully upgrade their systems to Smart Grid compliance would allow Vietnamese utilities to learn from
German case studies. Highly qualified German consulting companies are also desired for co-operating and
contracting in this field.
5
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
A big concern of utilities when upgrading to Smart Grid is that the new technology will be quickly obsolete and
therefore, careful selection of solutions must be done to avoid waste of investment.
For the awareness of Smart Grid in Vietnam, especially for utilities, a demonstration of upgrading a substation of
110/22kV transformer to Smart Grid compliance (fully interoperability with some IEC Smart Grid related standards
such as IEC 61850, IEC 61968, IEC 61970) would be helpful.
According to ATS Ltd. (Applied Technical Systems Ltd), the term Smart Grid in developed countries is very
different to Vietnam, which can be briefly defined as “a platform to improve the efficiency and reduce loss in
generation, transmission and distribution. Smart Grid also aims to create a culture of energy saving and
conservation, and stimulate the integration and development of RE”. The most important benefit of Smart Grid to
Vietnam is the improvement of grid reliability, stabilities and the quality of power transmission and distribution.
To promote Smart Grid in Vietnam, the legal framework must be of the highest priority. The roadmap must be
developed, then the design framework and pilots customized for Vietnam, which must be constructed mainly by
Vietnamese, because Vietnamese grid is far different from other countries, especially developed countries. From
ATS’s (Applied Technical Systems Ltd.) point of view, a Smart Grid demonstration project requires a
comprehensive study of the project’s definition and design. It can be selected from one of four domains: generation,
transmission, distribution and operation.
Main barriers for Smart Grid Deployment in Vietnam:
Technical barriers:
■
Vietnamese grid infrastructure is highly heterogeneous from a large number of vendors from many
countries (Germany, France, Sweden, USA, Russia, etc.). Much of the equipment is obsolete, not fully
compatible with each other and not standardized. Therefore, it will require heavy investment for improving
and modernizing generation, transmission, distribution and even household systems.
■
Lack of standardization in operation, generation, transmission, and distribution.
■
Lack of Smart Grid expertise.
■
The public relations activities regarding Smart Grid are still limited in closed conferences and workshops
without working illustrative demonstrations to convince audiences.
Financial Barriers:
■
Funding a very large investment for Smart Grid over the next 20 years is a very challenging task for the
government.
■
Investing in Smart Grid will finally result in the increase of electricity price, which will have a broad effect
on the whole society. The current electricity price schemes are too low to provide market incentives for
Smart Grid.
■
The business model for Smart Grid in Vietnam is yet to be defined, while Smart Grid is a very expensive
technology and needs very strong market incentives.
Political Barriers:
6
■
Low public awareness, especially among electric authorities, power companies and customers on the
benefits of Smart Grid.
■
Low awareness of authority consulting to EVN and its member companies on setting up "systematic
tenders" for upcoming investments that allow more coherency among sub-technologies in (smart) grid
infrastructure, in order to obtain future-proof scalable Smart Grid solution and avoid future system
incompatibleness.
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
■
The legal framework for Smart Grid deployment and Smart Grid applications is still under development.
Identified Business Opportunities in Smart Grid in Thailand
Chapter 9 of the study focusses on identified application areas and sub-technologies for Smart Grid systems for
short to mid-term prospects in Thailand.
Concrete business opportunities are listed in sections 9.1.1 to 9.1.5 and have been prioritized regarding the time
frame.
The energy service providers and related authorities, like EPPO, EGAT, PEA, MEA, PTT, have been convinced of
the necessity of Smart Grid application for the electricity grid system in Thailand. Most of them either have utilized
or plan to install Smart Grid related hardware and applications in their facilities. The addition of the Smart Grid
applications can be done as most of the utilities already have SCADA in their systems (SCADA enables
communication between the service providers and their customers and it allows a transfer of gathered data between
different authorities). Utilities will be able to improve their services by providing advice to their customers for more
efficient and more cost effective use of energy. Furthermore, the distribution management system can process realtime information of the grid conditions and promptly detects fault locations with the advanced sensors and meters.
The main areas for Smart Grid component applications in Thailand are the following:
Substation and distribution automation
The automated distribution management system can detect and identify disturbances and their location with
advanced sensors almost immediately, and this improves repair time resulting in shorter outages. The system can
maintain balance of voltage, frequency, and reactive power. It includes the following elements:
■
Substation controller and transformer monitoring and diagnostics
■
Energy Management System (EMS) analyzing power flow and contingency for the supply side
■
Fault detection, isolation, restoration (FDIR)
■
Integrated Volt/VAR management, including switched capacitors and voltage regulator
■
DMS/OMS software and interface to existing applications, control center digitalization, and enterprise
integration
Advanced metering infrastructure and communication
The advanced metering infrastructure (AMI), which includes two-way communication with smart meters, enables a
transfer of customers’ consumption information and remote control of customers’ appliances. The systems and
software are as follows:
■
Smart meter (Single phase and poly-phase),
■
Two-way communication,
■
Meter Data Management System and interfaces to other enterprise applications,
SCADA and Wide Area Monitoring System (WAMS) may be added to the points mentioned above, since they are
indirectly related. (SCADA usually describes systems for controlling transmission and distribution and WAMS is
normally based on Phasor Measurement Units (PMU).)
7
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Utility Enterprise Applications
Energy efficiency at the level of end-users is also a key success-factor to the smart applications. Demand side
management with an integration of energy storage can reduce peak demand and enhance energy efficiency and is
being explored under utility enterprise application by PEA. Smart household energy management will provide
flexibility for the customers to sell their excess power from their vehicles back to the grid. These include: DSM
application, Building energy automation systems, In-house displays, EV charging (G2V) and discharging (V2G)
systems
Micro-grid systems
Electricity end-users can be producers of electricity from renewable energy or other types of distributed generation.
Micro-grid systems will facilitate the integration and aggregation of very small power producers and their
connection to the main grid with reliability and safety. Micro-grid systems will allow islanding when there is
instability of the main grid or adequate generation from the micro-grid members.
Electric vehicle charging stations
Many energy service providers are interested in EV charging stations, which will supplement or replace traditional
gas stations in the future. Existing gas stations, department store parking lots, and office building parking lots seem
to be the best targets for public EV charger installation. A few demonstration stations have been set up with
batteries, inverters, and charging equipment.
Identified Concrete Investment Plans in Thailand
There are plans for investment from utilities in the near future. PEA has announced its investment plan for Smart
Grid development of 10 billion Baht (250 million Euro) during 2012-2016, 40 billion Baht (1,000 million Euro)
during 2017-2021, and 65 billion Baht (1,625 million Euros) during 2022-2026. MEA does not make known its
investment plan, but clearly indicates that the acquisition of Smart Grid facilities and smart meters has been ongoing. Although there have not been any announcements on budgets, EGAT has issued its plan for communication
improvement, while PTT has shown a strong interest in EV charging stations.
The roadmap prepared by PEA, the facilities planned for installation by MEA, and the interviews given by EGAT,
MEA, Solar Power Company Group (SPCG), one of Thailand’s biggest developers of solar farms, and the research
unit at KMITL indicate the equipment and software that are included in the future investment plan. PEA declared
the scope and budget of phase 1 (PEA Smart Grid Phase I, 2012 - 2016), as outlined below in Table 1.
8
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Concrete opportunities stating planned and on-going tenders, contact details and time frames can be found in Table
1 - Table 28 and Chapter 9.2 for Thailand and 10.2 for Vietnam respectively.
2013 - 2017
Smart Grid Development Project, Phase I
Project Area
Scope of Work
Smart Substation System Installation 20
Chiangmai Province
sets
Nakornrachasima
Province
Solar Energy Roof top 24 units
Phuket Province
Energy Storage 12 units
Pattaya
Charging Station 24 units
2014 - 2018
AMI Development Project, Phase I
Project Area
Scope of Work
26 municipalities in PEA
service area
Advanced
Meter
Infrastructure
Installation (1,000,000 sets)
2014 - 2018
Micro-Grid Development Project (Mae Hongson Province)
Project Area
Scope of Work
Mae Saraeng District
Install Energy Storage 1 set
Mae Hongson Province
Install Micro-Grid Controller 1 set
2014 - 2018
Micro-Grid Development Project (Trad Province)
Project Area
Scope of Work
Install Hydro Power Plant 1 set
Koh Kood
Koh Maak
Trad Province
Install PV Plant 2 sets
Install Energy Storage 2 sets
Budget
4,860 million Baht
(121.5 million Euro)
Budget
5,350 million Baht
(133.75
million
Euro)
Budget
330 million Baht
(8.25 million Euro)
Budget
225 million Baht
(5.62 million Euro)
Table 1: PEA Smart Grid Phase I
Identified Business Opportunities in Smart Grid in Vietnam
Chapter 10 of the study focusses on identified application areas and sub-technologies for Smart Grid systems for
short to mid-term prospects in Vietnam.
Identified application areas and sub-technologies for Smart Grid systems in Vietnam are for the short to mid-term
prospects. Guided by MoIT and ERAV, EVN and its member companies are actively deploying Smart Grid
technologies following the strategy of EVN and the “Roadmap of Smart Grid development in Vietnam”.
The near-term focused application areas are substation automation in transmission and distribution, advanced
metering, integration of renewable energy and electric transportation. Sorted by IEA definition for SG, the main
application areas in Vietnam are:
Wide area monitoring and control
SCADA/EMS system is the prioritized target for modernization of Vietnamese grid. This can be seen in the large
number of pilots throughout Vietnam, which can be considered as the first step toward Smart Grid in Vietnam.
9
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Information and communication technology integration
As a preparation for the competitive market, a customer information system (CIS) is also a focus in the Strategy of
EVN, which is strongly related to the information and communication technology (ICT) infrastructure of the power
sector.
Renewable and distributed generation integration
As Vietnam has high potential for renewable energy including hydro, solar, wind and biomass, the development of
new RE power plants in both centralized and distributed form and the integration of these sources into either the
medium or low voltage grid is very important for national energy security. Large pilot projects are being deployed in
middle and southern Vietnam, backed by the US, the EU and Japan.
Transmission enhancement
HVDC is planned in the EVN strategy as an alternative for current high voltage alternating current (HVAC)
transmission lines.
Distribution grid management
Geographic information system (GIS) substations, distributed management system (DMS) and outage management
system (OMS) are being deployed and/or piloted in the distribution grid as a means of improving operational
efficiency and power stability and quality.
Advanced metering infrastructure
Advanced metering infrastructure (AMI) projects have taken a large part of Smart Grid development activities in
Vietnam. Due to the large investment required, it is first applied to large customers such as industrial sites and
commercial buildings.
Electric vehicle charging infrastructure
As Vietnamese traffic and environment are being heavily affected by millions of motorbikes and cars, electric
transportation is planned in large cities and/or tourism cities, thus raising the demand for charging infrastructure.
However, due to its special nature, the electric transportation is currently under direct control of the Ministry of
Transportation.
Based on the plan to establish a fully competitive retail energy market by 2022 and the national electricity
development plan for 2011-2020 with vision to 2030, substantial investment will happen in Vietnam, in average
around 5 billion USD per year: “The total investment in the power industry until 2020 is approximately 929,700
billion VND (equivalent to 44.68 billion USD), average is 4.88 billion USD annually.” In the period of 2021-2030,
the estimated total investment is 1,429,300 billion VND (75 billion USD). In the whole period 2011-2030, the
investment demand is 2,359,000 billion VND (123,8 billion USD) including: generation: 2011-2020: 619,300
billion VND (66.6% of total investment) and 2021-2030 is 935,300 billion (65,5% of total investment); power grid:
2011-2020: 210,400 billion VND (33.4% of total investment) and 2021-2030: 494,000 billion VND (34.5% total
investment)”.
The business opportunities in Smart Grid market include:
10
■
Technology, equipment and solutions provision in: 1) grid automation; 2) smart metering; 3) renewable
energy; and 4) electrical Transportation.
■
Investment or co-financing in pilot projects, technological demonstrations.
■
Consulting in design, implementation and operation of Smart Grid.
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
■
Consulting to EVN and its member companies on setting up "systematic tenders" for upcoming
investments that allow more coherencies among sub-technologies in (smart) grid infrastructure, in order to
obtain future-proof scalable Smart Grid solution and avoid future system incompatibilities.
■
Consulting & knowledge exchange on the development and deployment of new energy technologies.
Most of the current projects in Vietnam are testing all these three business opportunities.
According to the Roadmap of Smart Grid Development of Vietnam, the expense for development of the legal
framework, standardization, and piloting of Smart Grid technologies are approximately 50 million USD for the
period of 2013-2020. It is expected, that these investments will bring the following benefits:
■
Reduce generation expense of peak generation cost to average 143 USD/MW (or 3000 VND/kWh)
■
Reduce the demand for the construction of new power plants, of investment rate 2 million USD/MW
■
Benefit of reducing operational and maintenance cost: equal 10% investment for the period 10 years
■
Reduce power loss
■
Increase system stability
■
Environmental benefit due to reductions of CO2 emission
■
New job creation
Identified Concrete Investment Plans in Vietnam
1. 110 kV/22 kV Smart Distribution Substation (Da Nang City)
Duration: 2014-2016; Project Area: Thuan Phuoc substation, Da Nang City; Owner: Danang Power
Company (DPC)
Scope of work:
■ New installation of a 110kV/22kV smart distribution substation including two transformers with total
power of 103 MVA
■ Totally integrated digital control infrastructure with smart gateway or substation controller conforming
to Smart Grid standards, e.g. IEC standards such as IEC 61850.
■ Communication with existing SCADA/DMS installed at control center via IEC 60870-104.
Budget: 65 Billion VND (2.4 million Euros)
2. Grid automation in Khanh Hoa Province
Khanh Hoa Power Joint Stock Company (KHPC JSC) is operating the grid of 110 kV and below 110 kV
including (as of 03/2012): 110 kV transformer station: 13 stations; 110 kV line: 340.467 km; Intermediate
station 15-22-35 kV: 6 stations; Public load stations and clients: 2928; Re-closer equipment: 51 sets.
In the three phase upgrading project, the first phase was completed with the following results:
■ Online monitoring and administration of the system, sharing operational data with the user.
■ Combining remote control system of 110 kV substations and information collection system operated at
110 kV substations into a common system.
■ The data: P, Q, U, I, cos-(phi) ... at the meters on the 110 kV, 35 kV, 22 kV, 110 kV substations were
collected, processed and stored in the new ICT infrastructure.
■ Assists for the monitoring and management of power trading in the company.
11
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
In Phase 2 of the project it is planned to complete the following:
Complete remote control of 110 kV stations (9 stations), additional SCADA/DMS for electricity distribution
networks, and metering management for commercial and industrial customers.
The project will provide full system monitoring and information management capability. General scope of
the project includes:
■ Hardware: additional, redundant management computers and applications to ensure that no single
incident can disrupt the normal operation of the system.
■ Software: additional software modules integrating services and applications on the basis of data
collected from the dispatch center, 110 kV station, MV systems and meters.
■ Develop automated system control station (SAS) for the remaining 9 stations.
■ Develop systems to collect data from the meters of industrial and commercial customers. Expect
around 1500 endpoints.
■ Develop data collection system connecting the reclosers, medium-voltage terminals, RMU and deploy
test monitoring and control of some circuit-breakers, estimated at about 200 endpoints.
The scope of Phase 3 will include:
Additional SCADA/DMS for the distribution grid, and metering management for a wide range of consumer
activities. The project will provide full system monitoring and information management measures. General
scope of the project will include:
■ Hardware: additional media management computer to be able to manage and collect data from the
meter of the consumer protection activities. Expect to add about 10,000 households each year.
■ Software: supplement and upgrade the historical database to suit the amount of data growth when
connected to a wide range of consumer activities.
■ Implement system to connect to data collected from the public and client stations and reclosers, for
medium-voltage substations, RMUs, and deploy test monitoring controls for a number of circuitbreakers targeted to manage the entire high-voltage power grid. Expected around 2000 points.
Budgets: Phase 2: 45 billion VND = 1,7 million Euros, (5 billion VND per Substation); Phase 3: 12 billion
VND: 0,5 billions VND per 10,000 meters/ annually + 10 billion VND per 2000 3-phase meters.
3. Project Installation of electronic meters of EVN Central Power Company (EVNCPC):
This is a Distribution Efficiency Project (DEP) project of the World Bank to install approximately 10,000
electronic meters with a total investment of approximately 100 billion VND. The project when completed is
expected to improve the quality of customer service, increase productivity, reduce power losses, contribute
to increased operating power production efficiency, and improve the business of EVNCPC. Project
implementation period is from 2012 to 2017.
4. Integration of renewable energy in EVNCPC
This project aims to integrate small hydro power plants to the SCADA/DMS of EVNCPC to study the effect
of implementing RE to the operation of distribution grid of EVNCPC.
5. Micro-grid systems in remote islands
The demand for micro-grids is very high on islands (like Truong Sa, etc.) to both provide electricity for the
island population and for national security.
12
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
6. Electric vehicle charging stations
In large cities and tourism cities, where electric cars and buses for tourists are becoming popular, the
demand for EV charging stations is also increasing. (Such as: Hanoi, Ho Chi Minh City, Hai Phong, Cua Lo,
etc.).
Concrete opportunities stating planned and on-going tenders, contact details and time frames can be found
in Table 20 - Table 28 and Chapter 9.2 for Thailand and 10.2 for Vietnam respectively.
Recommendation of the Market Study
Vietnam and Thailand are just starting to develop their Smart Grid infrastructure and already now many overseas
companies are active and have started to build up their relations with the local utilities, which are responsible for
SG investment planning and implementation. Germany is in this area not at the forefront, other countries are much
more active so far.
This market study is timely to provide a snapshot of the current situation and identify some concrete opportunities
for German companies providing proven high quality technology and services to participate in the on-going Smart
Grid investments.
The most important point for Thailand is that in mid 2013 the national Smart Grid roadmap shall be ready for
publication by EPPO and then a more concrete picture will exist in which direction and with which technologies
Thailand wants to proceed. GIZ will closely follow up with EPPO on the Smart Grid roadmap, spread the
information on latest developments and scrutinize the implementation. At that point even more business
opportunities can be identified.
Until now only PEA has a publicized their Smart Grid investment plan, others are investing as well, but do not
make it public in a Smart Grid plan.
In Vietnam large investment opportunities exists, due to the need to upgrade the infrastructure independent of SG.
Here the provision of financial assistance seems to be a precondition for companies to be able to participate in the
Smart Grid market. Therefore a close cooperation between public and private financial institutions and private
companies in Germany will represent a key success factor.
Especially for Vietnam GIZ will determine the possibilities of financial institutions to support the further
development of Smart Grid technologies in Vietnam.
Of particular importance are therefore the financing requirements in this sector with the focus of including SG
technologies in the already planned expansion and strengthening of the grids.
A general issue in Thailand and Vietnam is the standardization for a systematic integration of technologies into the
existing grid infrastructure. Internationally accepted standards, e.g. from the International Electrotechnical
Commission (IEC), could be used as a guideline and orientation to establish standards. This would help to reduce
incompatibilities, and therefore financial losses, from grid technologies.
In the short term there will be a potential for grid stabilizing and grid efficiency enhancing technologies and
systems for Thailand and Vietnam, which in turn leads to an acceptance of Smart Grid technologies later on. The
aim is a stabilized grid with a certain quality and/or the enhancement of transmission capacity, which could also
include reactive power compensation.
13
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
To follow up on the developing Smart Grid market a matrix for Smart Grid opportunities is envisioned, to be
regularly updated by GIZ and other German organizations in Thailand and Vietnam to provide German companies
with an update about planned and on-going investment opportunities.
Proposed “Demonstration Projects” to be further enhanced by GIZ
In Chapter 11 of the study some initial ideas for “demonstration projects” are outlined as recommendations. These
projects can be in a form of a public-private partnership or an Energy Service Company (ESCO) investment model.
They shall serve as a proposal to GIZ for initiating further activities and their involvement in this developing
market. The purpose of these demonstrations projects is to support the involvement of German companies in the
Smart Grid market development in Thailand and Vietnam.
There are two demonstration projects proposals for Thailand and three for Vietnam.
Thailand Demonstration Project 1: Smart meters with data transmission capability
Background: Smart meters are now in the focus of the electricity service providers, both MEA and PEA, and have a
large business potential in near future. The demonstration project can start with an installation of a number of
smart meters for customers of different sizes, that is large, medium, and small consumers, manufacturers, buildings
and households. The smart meters must have a data transmission capability back to the electricity utility
companies, which allows two-way communication, information storage, and remote monitoring capability. Remote
control of customers’ appliances can be an option. The system should include information feedback to the
customers. A display of electricity usage may be installed with the meter to provide continuous information for the
user. The display can be in forms of a list of historical usage, daily accumulation, comparison with previous month,
or graphs. An alternative of the feedback can be provided at a dedicated website, where the customers can access
and view all their usage information. The installation of the smart meters encourages effective demand side
management, enhances services to the customers, and encourages energy efficiency improvement.
Justification: It was stated during the interview that MEA is procuring 8,000 automatic meters, and planning for
23,000 units more next year. PEA plans to install 400,000 advanced meters for its customers in cities during 20132017 with a budget of 4,860 million THB.
Potential benefit of the demonstration project:
■
MEA, PEA and EGAT
There are sizable budgets from the main utility service providers for the replacement of the existing meters
with advanced meters. As customers, MEA, PEA and EGAT can have a chance to verify the qualities of
German products through the demonstration project.
■
German suppliers
This is an opportunity for the meter suppliers in Germany to bring their products to the attention of the
main utilities and engage in future sales. Through the participation in the demonstration project, German
suppliers who have never been involved in any business with Thai authorities can get acquainted with the
local procurement requirements and procedures. This will also help in the introduction of newcomers to
the system.
Potential partners for the project: MEA, PEA, and EGAT
Objective:
14
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
■
The main objective is to make PEA and MEA as early as possible aware about the special advantages of
German smart meter suppliers and their products;
■
To connect suppliers and utilities, so they can develop good relationships and build a foundation for future
business;
■
To allow both suppliers and their customers (utilities) to exchange information and to adjust their technical
requirements;
■
To create a positive attitude towards the products featured in the demonstration project.
Activities:
■
To install a number of advanced meters (10-20 units) for the utilities’ customers and a central receiving
unit to retrieve information from the meters;
■
To test the units by allowing the utilities to have access and control of the system for a period of time (3-6
months);
■
To compile and analyze the information together with the utilities (MEA, PEA, EGAT);
■
To analyze the performance of the system in comparison with the utilities’ requirements.
Impact:
■
Learn about the advantages of having smart meters and its benefit for grid management, demand
management, tariff impact and customer relation issues;
■
Goodwill and better understanding of the products to be demonstrated;
■
An initial acquaintance and long term relationship among German suppliers and local utility agents.
Next Steps:
1. Discuss smart meter topic with PEA, MEA and potential suppliers further;
2. Possibly organize a study tour for local utility staff to German smart meter projects to see potential benefits
of a holistic approach of smart meter programs;
3. Discuss with PEA and MEA specifications of smart meters for demonstration project;
4. Install a number of smart meters for different groups of PEA or MEA customers with communication
means;
5. Monitor the performance and adjust specifications in accordance with PEA and MEA requirements.
Thailand Demonstration Project 2: Micro-grid with a management system
Background: There will be more and more distributed generators, both with rotating generators and renewable
energy with inverters, installed in parallel with the supply of electricity from the main grid. The additional
distributed generators are meant for peak reduction and islanding capability, including selling power back to the
grid. A micro-grid arrangement will help in balancing the supply from the main grid with power from embedded
distributed generators in the system to achieve the objective and principle of the design. In addition, an
unintentional islanding facility will disconnect the local grid from the main grid when there is an interruption in
electricity supply from the main grid, and will start its own generation to compensate the shortage. This can be
viewed as an enhancement of the reliability of the local system. A micro-grid capable of integrating the system and
including a management system for efficient operation are required to fulfil the purposes. A successful
demonstration of a micro-grid can create a great business opportunity for the future.
15
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
“As a suitable demonstration project we regard the installation of an island power solution involving
conventional generators, renewables and battery storage for stabilization. This is a solution addressing
specifically the issue of weak/overloaded grids and rarely electrified areas lacking a stable power supply. On the
one hand implementation is straightforward and does not require the approval of too many authorities typically
required for any large infrastructure project. On the other hand a precise calculation of the amortization period
is doable for this type of project encouraging potential investors to participate. Furthermore this would basically
be a Smart Grid project on a small scale showing a clear economic benefit. The demonstration of an island power
solution (micro grid) would involve conventional generators, renewables and battery storage for stabilization. A
perfect place for such an autonomous power supply would either be a geographic island with no connection to the
central transmission grid or a remote industry site currently powered by diesel generators and facing high fuel
costs. We could supply and implement the required diesel-offsetting solution turnkey from a technical and
execution perspective. But the involvement of a strong equity partner would be mandatory from our point of
view.” (Dr. Leif Wiebking, Chief Technology Officer of the Instrumentation, Electrical and Control Business Unit at
Siemens Energy)
Justification: There is a plan to install demonstration micro-grid systems for PEA’s customers in Mae Sareang
district, Mae Hongson, with a budget of 330 million THB, and in Koh Kood and Koh Maak, Trad, with a budget of
225 million THB. There will also be an expansion of the project after the success of the demonstration project,
which will require a large amount of hardware and more micro-grid systems.
Potential benefit of the demonstration plant:
■
MEA, PEA and EGAT
Due to the projects planned by PEA and the budget set forth, there is an opportunity for German suppliers
to offer their collaboration with PEA on demonstration micro-grid systems.
■
German suppliers
Future business can be developed if German suppliers can convince PEA of their products’ quality and
superior performance. Micro-grids are site specific, and require careful study and proper design to suit the
site conditions and environments. It is a good chance for the German suppliers to provide suggestions and
recommendations for the design and specifications of the micro-grid components to the local authorities,
which will possibly be included in the future purchase orders.
Potential partners for the project: MEA, PEA, EGAT, and industrial parks with distributed generations (DG).
Objective:
■
The main objective is to make PEA aware of the specific comparative advantage of German suppliers in
micro grid system components and field experience. This should be done as early as possible as some micro
grids will be implemented in the near future in Thailand anyway.
■
To create an opportunity for German suppliers to access PEA and other private power producers (SPP,
VSPP, and industrial parks);
■
To allow both suppliers and PEA an opportunity to collaborate in design of the micro-grid systems to the
needs of the customers;
■
To make known the availability of the hardware and software from Germany.
Activities:
16
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
■
To collaborate with PEA in the design, procurement, and installation of micro-grid systems for PEA’s
demonstration plants;
■
To investigate and analyze the performance of the micro-grid systems together with PEA;
■
To conclude and modify the final specifications of the micro-grid systems to be procured and installed in
the expansion projects.
Impact:
■
A better understanding of the system requirements and product availability through collaboration with
PEA in the demonstration;
■
A closer relationship among German suppliers, local utility agents and other private power producers (SPP,
VSPP, Industrial parks).
Next Steps:
1. Organize a workshop with PEA and German suppliers on the topic of micro-grids to show comparative
advantage of German system concept and their experience.
2. Organize a study tour to show successful micro-grid systems operated with German technology
3. Define scope and area of the demonstration project for micro-grid application with PEA and potential
German suppliers
4. Develop a PPP concept approach or an ESCO concept with potential German suppliers; once the micro-grid
demonstration system is installed, assist in monitoring the performance and yield of the demonstration
project and disseminate the results.
Vietnam Demonstration Project 1: Smart metering for large customers and distribution grid management
Background: Smart metering is one of the main targets in the national roadmap of Smart Grid deployment. Due to
the large investment requirement, the main focus in the first phase will be large customers. In this demonstration
project, a number of smart meters with TOU pricing can be installed for industrial customers (such as steel and
textile manufacturers) to demonstrate the benefit of AMI in distribution grid to improve energy efficiency and some
energy policies such as TOU. The smart meters must have a data transmission capability back to the utility, which
allows two-way communication, information storage, and remote monitoring capability. To provide direct feedback
to customers, a number of displays should also be provided to show real-time energy consumptions and historical
data/graphs of usage, daily accumulation, and comparisons with previous month. Distribution grid management
software should be installed on the utility side to help operators to monitor the load. Automatic alerts to customers
for reduction in energy usage can be integrated to assist the load-shifting (at the moment, utility’s staff is using
manual phone calls for this purposes). Other benefits such as grid stabilization and outage management can also be
demonstrated. Thus this Demonstration is considered to be beneficial to both customers and utility.
Justification: There is a large plan of EVN Central power Cooperation (EVNCPC), which is financially supported by
World Bank to install approximately 10,000 electronic meters with a total investment of approximately 100 billion
Vietnamese Dong.
Potential benefit of the demonstration plant:
■
EVN, EVNCPC, DPC
The project completion is expected to improve the quality of customer service, increase productivity, reduce
power losses, increase the operating efficiency of power production, and improve the business of EVNCPC.
There is a sizable budget for upgrading current mechanical meters to electronics meters. As customers,
EVN, EVNCPC and DPC can have a chance to verify the qualities of German products through the
17
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
demonstration project. In addition, at the moment, EVNCPC having some difficulties in accessing cheap
loans to implement this project and therefore, financial supports from German banks will greatly support
this project.
■
German companies:
The demonstration project is opening opportunities for German suppliers to participate in the World Bank
project to deploy electronic meters. In this project, German companies can play active roles in providing
equipment’s, technologies and especially consulting services, while German institutions and banks can
provide financial supports such as low interest loan which is highly desired.
Potential partners for the project:
■
EVN, EVNCPC, DPC
■
German suppliers
■
Optional intermediation partners
Objective:
■
The main objective is to make EVNCPC and DPC as early as possible aware of the special advantages of
German smart meter suppliers and their products;
■
To connect suppliers and utilities, so they can develop good relationships and build a foundation for future
business;
■
To allow both suppliers and their customers (utilities) to exchange information and to adjust their technical
requirements;
■
To create a positive attitude towards the products featured in the demonstration project;
■
To connect German suppliers and utilities for exchanging information, adjusting their technical
requirements;
■
To demonstrate the capabilities of German technologies, German consulting;
■
To increase the awareness on Smart Grid/ Smart meter benefits to utility, customers, and authorities.
Activities:
■
To install a number of advanced meters (10-20 units) for the utilities’ customers and a central receiving
unit to retrieve information from the meters;
■
To test the units by allowing the utilities to have the access and control of the system for a period of time (36 months) or transfer the system to utility;
■
To compile and analyze the information together with the utilities (DPC);
■
To analyze the performance of the system in comparison with the utilities’ requirements.
Impact:
■
18
Goodwill and better understanding of the products to be demonstrated and an initial acquaintance and
long term relationship among German suppliers and local utility agents.
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Next Steps:
1. Discuss smart meter topic with EVNCPC and DPC and potential suppliers further;
2. Possibly organize a study tour for local utility staff to German smart meter projects to see potential benefits
of an holistic approach of smart meter programs;
3. Discuss with partners specifications of smart meters for demonstration project;
4. Install smart meters and assist in monitoring.
Vietnam Demonstration Project 2: Upgrading obsolete substation to Smart Grid compliance
Background: In the demonstration project an un-instrumented substation of 110/22 kV can be equipped with
SCADA/DMS system with smart meter and wide-area monitoring systems (WAMS), wide-area adaptive protection,
control and automation (WAAPCA). This will not only improve the reliability of the grid but also allow new Smart
Grid applications running through the ICT infrastructure. KHPC JSC is among few joint stock power companies.
KHPC is also considered the most active in deploying modern grid technologies with a long-term plan to upgrade
the power grid of Khanh Hoa Province.
Justification: Upgrading current substations to Smart Grid compliance is the highest priority target in the national
roadmap of Smart Grid deployment. In this project, there is a very strong demand for low interest loans. The
involvement of German institutions and banks providing financial supports such as low interest loans will be the
key success factor. As KHPC is a joint stock company, the tender procedure is very flexible and fast. While KHPC
complete the first phase of modernizing its provincial grid, the next phase 2 and phase 3 will be worth 45 billion
VND (1,7 million Euros) and 12 billion VND (0,5 million Euros), respectively.
Potential benefit of the demonstration plant:
■
KHPC
As KHPC JSC is very active in R&D in Smart Grid deployment, they will obtain great benefits from German
expertise in this field through this demonstration.
Through the project, not only a typical technological model of Vietnamese Smart Grid can be prototyped
but also a financial and business model based on Public Private Partnership (PPP) can be assessed. In this
project, the financial supports such as low interest loans are also highly desired.
■
German partners:
German companies/institution can play active roles in 1) consulting services; 2) providing equipment and
technologies; and 3) providing loan. As the Khanh Hoa model is currently considered among most
successful models of Vietnamese grid modernization, the demonstration can be easily expanded. It is a
good chance for the German suppliers to provide suggestions and recommendations for the design and
specifications of the KHPC’s Smart grid components to the local authorities, which will possibly be included
in the future purchase orders.
Potential partners for the project:
■
Khanh Hoa Power Joint Stock Company (KHPC JSC)
■
German suppliers/consultant
Objective:
■
The main objective is to make KHPC as early as possible aware of the special advantages of German
suppliers and their products;
19
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
■
To connect suppliers and utilities, so they can develop good relationships and build a foundation for future
business;
■
To create a positive attitude towards the products featured in the demonstration project;
■
To connect German suppliers and utilities for exchanging information, adjusting their technical
requirements;
■
To demonstrate the capabilities of German technologies and German consulting in designing/providing
integrated solutions, which are highly scalable and customizable for Vietnamese grids and compliance with
popular Smart Grid standards;
■
To show the tangible benefits of deploying smart grid to utilities/operator/authority.
Activities:
■
To integrate digital control infrastructure with smart gateway or substation controller conforming to Smart
Grid standards, e.g. IEC standards such as IEC 61850 in an existing substation;
■
To communicate with existing SCADA/DMS installed at control center via IEC standards.
Impact:
■
Great experience with Vietnamese power grid modernization through collaborations with KHPC, which can
be expanded for larger scale;
■
Great public awareness on the new model of Vietnamese Smart Grid.
Next Steps:
1. Contact KHPC through either German agencies or intermediation partners;
2. Compilation of all requirements, site survey, etc.;
3. Requirement analysis, design and planning;
4. Discuss with German financial institutes low cost loan offers;
5. Discuss this topic with KHPC and potential suppliers;
6. Organize a study tour for local utility staff to German Smart Grid projects to see potential benefits of an
holistic approach of German Smart Grid model;
7. Discuss with partners specifications of smart grid for demonstration project.
Vietnam Demonstration Project 3: Renewable and distributed generation integration
Background: The integration of distributed generation is among main targets of the Vietnamese national roadmap
of Smart Grid. The fact that Vietnam has very high potential of renewable energy including small hydro, solar, wind
and biomass will contribute to the high demand for Smart Grid. This demo project aims to integrate small hydro
power plants (> 5 MW) to the SCADA/DMS of EVNCPC to study the effect of integrating RE to the operation of
EVNCPC distribution grid.
Justification: This pilot activity is also planned in the National Road Map of Smart Grid Development in Vietnam,
Stage 1 (2012-2016), thus showing its importance to the EVN strategy.
Potential benefit of the demonstration plant: EVNCPC, SPP, VSPP, Utilities
■
20
The successful integration of distributed RE into the grid will encourage RE development, thus strongly
motivate SG deployment in Vietnam.
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
■
Especially, through the PPP (Public Private Partnership) mechanism, RE can be linked with a new business
model of green development in Vietnam, where RE, SPPs, and VSPPs can play a more active role in
contributing green energy to the current grid.
German partners:
■
By successfully demonstrating the clear benefit of RE integration into current grid, not only the Smart Grid
business can be promoted but also new business opportunities for German RE vendors will be created. This
is a great advantage thanks to the worldwide reputation of Germany as a leader in RE.
■
It is a good opportunity for the German suppliers to provide suggestions and recommendations for the
design and specifications of the Smart Grid components to EVNCPC, SPP, VSPP, and utilities, which will
possibly be included in the future purchase orders.
Potential partners for the project:
■
EVN Central Power Company (EVNCPC)
■
Private SPP, VSPP
■
German suppliers/consultant
Objective:
■
To demonstrate the capabilities of German technologies, German consulting in the field of renewable
energy integration;
■
To connect German companies to local SPP, VSPP and utilities to open new business opportunities for
German RE suppliers.
Activities:
■
To equip selected small hydro plant (< 5 MW) with appropriate devices to integrate with utility distribution
grid and connect them to the SCADA/DMS system of utility;
■
To control and monitor the electricity produced by hydro plant, according to load conditions.
Impact:
■
Raising public awareness of tangible benefits of both Smart Grid and RE for which Germany is
internationally renowned. Initial acquaintance and long term relationship among German suppliers and
local utility/ SPP / VSPP.
Next Steps:
1. Contact EVN CPC through either German agencies or intermediation partners;
2. Requirement collection;
3. Requirement analysis, design and planning;
4. Discuss with German financial institute for low cost loan offers;
5. Organize a study tour for local utility staff to German Smart Grid projects to see potential benefits of an
holistic approach of German Smart Grid model;
6. Discuss with partners specifications of smart grid for demonstration project.
21
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
2. Task of the study
1. Background
The Southeast Asian region with its high electricity rates and further potential for economic growth is facing
massive challenges implementing a reliable, efficient, and modern electricity and power supply that can cope with
the fast rising energy and electricity demand in its countries.
In this study Thailand and Vietnam are highlighted within Southeast Asia, since they are among the heaviest energy
consumers in the region with predicted high rates of increasing energy demand. Both countries are already reacting
to this development, as witnessed by their ambitious plans and promotion activities covering energy efficiency as
well as renewable power supply. Approaches and technologies for sustainable power supply, and in particular
improving grid capacities, are internationally and also in countries of Southeast Asia discussed in a more systematic
and integrated perspective: instead of only extending and improving grid capacities in the existing power supply
system, established and emerging concepts, systems and technologies combined under the term “Smart Grids” offer
a new systematic solution to the problem of ageing or lacking infrastructure, making it possible to “leap-frog”
conventional technologies and systems.
The Smart Grid is a very broad concept covering the entire energy and in particular electricity supply chain as well
as the demand side. Its precise scope is interpreted differently according to perspective and environment. In
general, technologies and applications that belong to Smart Grid systems already exist and have to varying degrees,
been technically proven. However, given the specific needs of developing countries and emerging economies, such
as countries in Southeast Asia, it is obvious that a Smart Grid approach for such regions cannot simply be a copy of
practices in industrialised countries – the starting points, challenges and opportunities are too different. But as
countries in that region belong – as stated above – to those nations with strong need for efficient and innovative
infrastructure investments and economic growth, they provide interesting market potential for German technology
and service providers, which however has not yet been assessed in detail.
This study on Market Potential for Smart Grid Technology in Thailand and Vietnam will provide comprehensive
details of the current market situation. It has been conducted in the frame of the „Energy Efficiency – made in
Germany “ initiative by the German Federal Ministry of Economics and Technology (BMWi). The BMWi has
commissioned the German - Bilateral Chambers of Commerce (AHKs) and the Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) GmbH to jointly implement the initiative’s regional activities in South-East
Asia. The „Energy Efficiency – made in Germany“ initiative aims at sharing knowledge and technology and creating
business partnerships and sector-specific networks between German and South-East Asian companies and business
associations in order to join forces to maximize project opportunities in the field of energy efficiency.
2. Objectives
The overall objective of the market analysis and recommendations is to identify target market segments and subtechnologies that allow at first commercial-scale demonstration and, in the long term, large-scale deployment of
modern and reliable Smart Grid technologies Thailand and Vietnam.
Opportunities for commercial-scale demonstration that are to be identified and outlined in the market study are
meant to demonstrate the potential cost savings through the deployment of Smart Grid technologies, the positive
impacts on energy security, and to position German companies as key technology and service providers in that area.
Specific objectives are:
1. Identification of application areas and sub-technologies for Smart Grid systems that exhibit promising
short- to mid-term prospects as
■ significant market segments for technology products and services
22
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
■
■
innovative solutions to the improvement of a given energy (sub-) system (sustainability, efficiency,
security) that could trigger new paths of energy sector developments which bypass obsolete approaches
opportunities for small- and medium-sized technology providers
2. Recommendation regarding the selection of 3-4 concrete opportunities that
■ are suitable for commercial-scale demonstration projects
■ are highly visible to relevant local stakeholders and demonstrate the benefits of Smart Grid systems
■ can be largely supplied by German products and services
■ can be expected to kick-off market development
3. Outline 3-4 concrete demonstration projects
In terms of target group and users, the market analysis and recommendations will provide companies with a
concise and compact overview and information about the modalities, requirements, and regulations of undertaking
business in Thailand and Vietnam in the field of Smart Grid technology. Likewise, technology providers,
manufacturers, and other investors will be supported in finding access to demonstration projects of Smart Grid
technologies that offer market entry approaches.
Besides determining the market possibilities for German companies in the area of Smart Grid in the near and
medium future, the objective of this study is as well to assist in the defining of themes and areas of intervention,
where German development cooperation can intervene with various partners and support this development. In
short, the study shall not only look at markets for commercial companies but as well how German international
cooperation can position itself in this whole process. The demonstration projects are the most visible outcome for
that.
This study focusses on the current market situation and opportunities for Smart Grid development and
implementation in Thailand and Vietnam, redefining the term “Smart Grid” in the context of the respective
countries analyzed compared to the definition from IEA in Chapter 3 “Introduction into Smart Grid”, and provides
data about market segments and sub-technologies to allow the execution of commercial demonstration projects,
and later on large scale deployment of modern and reliable Smart Grid technologies in Thailand and Vietnam.
This study also provides detailed information to determine the opportunities for German companies, especially
SMEs, to tap these markets. The opportunities outline the potential cost savings through implementation of Smart
Grid technology. Furthermore, they define the positive impacts on energy security and position German companies
as key technology and service providers in that area. The outlined proposals can be found in Chapter 11.
3. Tasks of assignment
Based on a rough assessment of potential “Smart Grid” markets in Southeast Asia, the market analysis and
recommendations have been conducted for Thailand and Vietnam.
An in-depth market analysis was conducted considering the data generation methods described below and
addressing the following issues with a view to the objectives explained above. Main pints of the market analysis will
be:
1. Key challenges of the countries' energy systems (technical, political, regulatory etc.)
2. Potential role and prioritization of Smart Grid technologies and deployment areas in addressing these
challenges
3. Basic commercial rollout scenario (short-, mid- and long – term).
4. Undeveloped business opportunities taken into account
■ Investment climate and regulatory framework
23
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
a. Policies and regulation (including existing power tariff system)
b. Applicable public sector support / financing mechanisms and sources
c. Campaigns and others
Business partners and competitors
a. Overview of key market players
b. Overview of major and/or most emblematic projects
c. Highlights in local market developments
d. Relevant activities of international donors
5. Recommendations and outlines for 3-4 Smart Grid commercial-scale demonstration projects and market
entry in the selected countries (i.e. prioritization and combination or technologies – considering the degree
of maturity, business models, framework conditions to be addressed, focus are for pilot – urban vs. rural,
etc.)
■
The following data generation methods should be applied for the elaboration of the market analysis by the
consultant:
24
■
Desktop research (existing market studies, grid studies, documentation of national energy sector planning
etc.)
■
Interviews with relevant players in the selected target markets, as well as German technology providers /
manufacturers and international Donors, in particular KfW, World Bank and ADB. In addition, also
interviews with correspondents of GTAI (Germany Trade and Invest) in Southeast Asia are to be
conducted.
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
3. Introduction to Smart Grid
1. Smart Grid – meaning, necessity, potential, impact, and requirements
What exactly does the term “Smart Grid” mean? As stated above in Section 2.1 this will vary according to
perspective and context. Nevertheless, it is helpful to have a high-level definition and we will start with this
characterization:
“A Smart Grid is an electricity network that uses digital and other advanced technologies to monitor and
manage the transport of electricity from all generation sources to meet the varying electricity demands of
end-users. Smart Grids co-ordinate the needs and capabilities of all generators, grid operators, end-users
and electricity market stakeholders to operate all parts of the system as efficiently as possible, minimizing
costs and environmental impacts while maximizing system reliability, resilience and stability.” [1]
It is now fairly widely accepted that the development of such Smart Grid solutions are “essential if the global
community is to achieve shared goals for energy security, economic development and climate change mitigation”.
[1] As indicated, these three high-level goals are common to all the nations of the world, whether industrially far
advanced or in an earlier stage of development.
In advanced industrial nations, the challenges facing electricity system planners include ageing infrastructure;
security of supply in the context of shrinking reserve margins (local, regional, or national); the transition to
deregulated, market-driven energy pricing and nodal trading; and the introduction of advanced energy services. In
developing nations, paramount are factors such as minimizing capital and operational expenditures; integrating
renewable and sustainable energy sources; increasing the choice of technologies for flexibility in addressing varying
regional conditions; and access to a rich supply chain including innovative solutions from SMEs who see a
worldwide market. In all nations and regions, there is a perceived need to reduce the environmental impact of
greenhouse gases from generation based on fossil fuels, and reduce the safety risks arising from nuclear generation.
Even where political or economic scepticism seems to impede progress, there is a strong undercurrent of scientific
and social awareness that is driving the industry towards these critical, long-term goals.
The potential for Smart Grid developments fundamentally to transform the electrical power industry has become
clear through demonstration projects and some early large-scale rollouts. Many national governments are making
significant investments in Smart Grid research, development, and demonstration (RD&D) programs, and there has
been a strong increase in the quantity and quality of international standards activities. There is growing interest
and engagement by major Information and Communication Technology (ICT) industry actors, with deep expertise
and portfolios in embedded controls, radio frequency and power line communications, data networking, software
systems, and cyber security. Most recently there has been an emphasis on the increasing use of massive volumes of
data from smart metering and other data collection systems to inform integrated operational and business
analytics, which are being adapted and adopted from other industries in which asset utilization, logistics, and deep
understanding of customer behavior, perceptions, reactions, and the maximization of customer retention are
critical to success.
From what has been noted above, the impacts of Smart Grid developments have the potential to be broad and deep.
They may include transformations in and of the electrical industry, power system architectures, equipment and
component supply chains, regulation and markets, end user behaviors and benefits, and more. A key potential
impact, which this study begins to assess, is the opportunity for Thailand and Vietnam to benefit from this
transition, intercepting trends and using new approaches, technologies, and a broad worldwide supply base to
develop their own, country-specific electrical system roadmaps and to pursue independence in energy matters.
There is potential for regional economic development as well, in two ways: a) the opportunity to lower the cost and
25
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
raise the reliability, availability, and quality of electrical energy; and b) the opportunity for indigenous and
multinational industrial firms to base Smart Grid-related manufacturing and services in the region.
The requirements for Smart Grid are extensive, but we can already see from our survey of the literature and
demonstration projects that they include:
■
increasing and eventually, deep penetration and integration of renewable energy sources;
■
increasing utilization of ICT for operations: monitoring, control, system modeling and optimization,
reliability and robustness to failure, and efficiency.
These four broad, high-level requirements engender others, including:
■
standards development, to make for a more efficient, competitive worldwide supply chain (compelling
models include the worldwide Consumer Electronics and ICT industries);
■
a steady flow of investments by governments (in RD&D) and private parties (e.g. venture capital, industrial
giants);
■
education of researchers, engineers, and technicians in the new Smart Grid technologies, as well as
professional certification and recognition;
■
sustained public focus on Smart Grid benefits through education and awareness campaigns, especially of
demonstration projects showing early promise, results, impacts, etc.
2. Existing Smart Grid Definitions and Technologies
The Annex Power team surveyed and analyzed definitions, formulations, analyses, and architectures of the Smart
Grid presented by international and national agencies, industry R&D groups, standards setting organizations, and
solution providers and equipment vendors 1. Naturally, there are variations in perspective and detail according to
the context, goals, applications, and technologies in question. Our purpose in this section is to establish a definition
of the Smart Grid that includes all relevant emerging technologies, and provides a basis for our analysis of Smart
Grid roadmaps and market opportunities for Southeast Asian nations. We draw primarily and essentially on [2].
1
Exemplary or all references to Smart Grid definitions, or a pointer to the global list of references.
26
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
A defining feature of all Smart Grid models we reviewed is the intensive integration of Information and
Communications Technologies (ICT) with power components and systems, from the core to the edge of the grid as
depicted schematically in Figure 1, in order to improve the situational awareness, control, reliability, security,
flexibility, efficiency, and overall value of the electrical system.
Figure 1: Core Smart Grid concept – marrying ICT with Power Systems [3I]
A horizontal, end-to-end capability for power system communication and control is indeed the Smart Grid vision
and end goal, but in practice grid modernization typically proceeds in projects and trials based in the traditional
domains of generation, transmission, distribution, and consumption. Some of these projects affect and are
managed primarily within one domain, while others, such as Wide-Area Monitoring and Control, and Electrical
Vehicle Charging Infrastructure, involve multiple domains. The mapping of Smart Grid technology categories onto
power system areas depicted in Figure 2, from [1], illustrates that ICT and renewable and distributed generation are
foundational, cross-cutting technologies that can involve and affect every domain. The other technology areas
shown affect at least three domains.
27
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Figure 2: Mapping Technologies onto Power System Domains [1]
This mapping of Smart Grid technologies onto power system domains can help in situating products and
applications in established procurement and operational processes, even as they may by their very nature blur the
boundaries between domains2. As such, it is well suited to our study of market entry opportunities for innovative
technologies.
Each technology area involves hardware and software systems that may exist, in some form and at some level of
development, in a given power system. Table 2 lists representative systems in the identified technology areas, while
Table 3 provides an approximation of their industry-wide maturity level and development trend, or speed of
adaptation.
2
Indeed, a definition of the Smart Grid in terms of institutional transformation might be: the application of technologies in
order to break down the boundaries between “vertical silos” and thereby transform a fairly centralized, monolithic system into a
more distributed, flexible, responsive and resilient system of systems.
28
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Table 2: Example Hardware and Software System, per Technology Area [1]
Table 3: Smart Grid maturity levels and development trends [1]
The mapping shown in Table 3 above can be expanded into a finer-grained matrix of technology and application
types, to support more precise analysis and planning in a specific (e.g. utility, control/market region, or national)
context. The Annex Power team used the detailed mapping shown in Figure 3 below as a baseline to compare other
Smart Grid models and definitions, and to derive country-specific mappings of Smart Grid projects and priorities
for Thailand and Vietnam.
29
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Operational Area
EVN and PEA : Smart Grid
Technology
IEA : Smart Grid
Phasor measurement units (PMU)
Supervisory control and data acquisition
(SCADA)
Wide-area monitoring systems (WAMS)
Wide-area adaptive protection, control and
automation (WAAPCA)
Wide-area situational awareness (WASA)
Power line carrier
WIMAX
LTE
RF mesh network
Cellular
Routers
Relays
Switches
Gateway
Computers & servers
Enterprise resource planning software (ERP)
Customer information system (CIS)
Power conditioning equipment for bulk
power and grid support
Communication and control hardware for
generation and enabling storage technology
Energy management system (EMS)
Distribution management system (DMS)
Geographic information system (GIS)
Superconductors
FACTS
HVDC
Network stability analysis
Automatic recovery systems
Automated re-closers
Switches and capacitors
Remote controlled distributed generation
and storage
Transformer sensors
Wire and cable sensors
Outage management system (OMS)
Workforce management system (WMS)
Smart meter
In-house displays
Meter data management system (MDMS)
Charging infrastructure
Batteries
Inverters
Energy billing software
Smart grid-to-vehicle (G2V) and vehicle-togrid (V2G) systems
Smart appliances
Routers
In-house displays
Building automation systems
Thermal accumulators
Smart thermostat
Energy dashboards
Energy applications for smart phones and
tablets
Advanced Metering & Communication, System
Integration
Wide-area
monitoring and
control
Advanced
metering
infrastructure
(AMI)
Information and
communications
technology (ICT)
integration
Distribution Automation, Substation
Automation, Distribution
Operations
Transmission
enhancement
applications
Distribution grid
management
Utility Enterprise Applications
Renewable and
distributed
generation
integration
Electric vehicle
charging
infrastructure
Customer-side
systems (CS)
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
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ü
ü
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ü
ü
ü
ü
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ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
Figure 3: Detailed Technology-Domain Mapping for Thailand and Vietnam [(Annex Power)]
The highlighted cells indicate areas of current and planned engagement in Smart Grid projects by government
agencies, utilities, and other entities (i.e. universities) in the two countries. (These projects are described below in
Section 5 “Smart Grid Activities in Thailand” and in Section 7 “Smart Grid Activities in Vietnam”.) In contrast, the
empty cells show areas of little or no activity, and therefore indicate opportunities for additional Smart Grid
research and development. 3
Another feature of the mapping in Figure 3 is its grouping of IEA Smart Grid technology categories (second row,
blue labels) into three main focus areas (top row, red labels), in which Smart Grid RD&D activities have been
organized in Thailand and Vietnam. This grouping is one of the ways that Annex Power has been able to adopt
global definitions and analysis of the Smart Grid to local institutions and conditions in Southeast Asian countries.
3
Comment on figure 3: Presently ‘HVDC / Enhancement of Transmission’ is a focus for Thailand only, not Vietnam.
30
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Finally, given the emerging nature of Smart Grid technologies, and the scope and complexity of their integration
into existing power systems, the process is bound to take many years, even decades, and will be shaped by evolving
technical, business, regulatory, financial, social and organizational factors. Smart Grid planning is therefore being
done according to technology roadmaps, which are meant to be revised and approved at fixed intervals (e.g. five- or
ten-year plans). This incremental development process is represented in the diagram below, in which once again
the increasing penetration of ICT and renewable, distributed energy is shown as the power system evolves over time
towards the Smarter Grid.
Figure 4: Iterative, Incremental Process of Smart Grid Development [1]
3. Global Smart Grid development and demonstration projects
Since the late 1990s there has been steady growth in Smart Grid trials, demonstration projects, and commercial
deployments. The “first wave” of activity began with Automated Meter Reading (AMR) deployments in Europe
(Italy, France, and Spain) and Smart Meter/Advanced Metering Infrastructure (AMI) deployments and the United
States. In parallel with these large-scale commercial roll-outs, hundreds of demonstration projects have been or are
being pursued worldwide, to explore the feasibility and value of every Smart Grid technology area and application
surveyed in the previous section. These trials are helping drive a “second wave” of Smart Grid activity, in which a
number of innovative technologies and applications stand to become proven as suitable for large-scale commercial
deployments.
There are many such Smart Grid demonstration projects, in every region of the world and at various stages of
planning, execution, and evaluation. Resources for learning about them are widely available, although the quality
and quantity of information is variable.4 As part of this study, the Annex Power team conducted a thorough review
and analysis of all the leading Smart Grid projects worldwide and the available studies of their effectiveness to date;
filtered and rationalized the information; and summarized the aspects most relevant to this project’s goals. That
summary, included as an Appendix A to this report, informed our analysis of current power system realities and
Smart Grid projects in Thailand and Vietnam (Sections 0 to 7), and helped to shape our recommendations for
potential demonstration projects in those two countries (Sections 0 to 11).
Among the most complete and accurate sources are government entities accountable for the expenditure of public funds on
Smart Grid RD&D, so we have relied on those wherever possible.
4
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
4. Energy Situation in Thailand – Key Challenges of
the Countries Energy System
This chapter gives a broad background of the current energy situation in Thailand, including an overview of actual
energy consumption and energy generating capacities, the relevant energy institutions, and the local energy policies
and regulations.
1. Overview about Energy Situation and Energy Market
1. Primary Energy Consumption
Thailand is an energy import dependent country, with 48% of its primary energy consumption in 2010 being
imported. Spending for this imported energy accounted for 10% of the GDP or 319 billion USD in 2010. Out of the
total energy import in 2010, crude oil dominated with a share of 62.5% or 65 Mtoe. Natural gas and coal followed
with 17.5% and 16.4% respectively.
Figure 5: Primary energy consumption in Thailand in 2010 (Numbers: [6], Graph: [Annex Power])
Fossil fuel has dominated the total primary energy supply of the country. In 2010, more than 80% of the total
primary energy supply was fossil fuel. Oil and natural gas took the major portions of 35% and 33% respectively, and
were followed by coal with 13%. Renewable energy and hydropower shares were 18% and 1% respectively.
Figure 6: Shares of fossil fuel and renewable energy in total primary energy in 2010 (Numbers: [6] Graph: [Annex Power])
32
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
The industrial sector and road transport took the largest shares of final energy consumption in 2010. Those were
36% and 35%. Residential and commercial sectors consumed 15% and 8%, while the others took the rest.
Figure 7: Energy consumption by sectors (Numbers: [6], Graph: [Annex Power])
Energy intensity, defined as energy consumption per GDP, was relatively high for Thailand compared to the world
average and developed countries. Even among Asian countries, Thailand consumed more energy per GDP than
Malaysia, the Philippines, and Singapore. It is worth noting that the energy intensity for Thailand in 2009 was on
the increasing trend compared with that in 1990.
Figure 8: Energy intensity for Thailand compared with other countries and world average [4]
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
The total final energy consumption (TFEC) growth rate has closely followed the economic growth rate in the past
decade. The average growth rate of TFEC was 4.4% during 1991-2010, while the GDP growth rate was 4.5% during
the same period. The leading economic sectors, which had high growth in consumption, were the commercial
sector, the industrial sector, and the transportation sector. They grew 7.5%, 5.9% and 4.3% on average, respectively.
The residential sector and the others followed with 2.2% and 3.0% growth rates. It is also projected that the average
TFEC growth rate in the case of BAU, business as usual, is 4.2% each year for the next two decades. Electricity
demand grew even faster, at 7.1% annually, and became more dependent on gas imports from neighboring
countries.
Figure 9: Projection of energy consumption during 2010-2030 [5]
2. Electricity Generating Capacity and Consumption
The installed electricity capacity at the end of 2011 was 31,446 MW, which increased by 0.9% from the previous
year. The total capacity consisted of 14,998 MW (48%) from EGAT, 12,082 MW (38%) from Independent Power
Producers (IPP), 2,182 MW (7%) from Small Power Producers (SPP), and 2,184 MW (7%) imports from
neighboring countries.
Figure 10: Thailand electricity installed capacity in 2011(Numbers: [6], Graph: [Annex Power])
Natural gas was the major source of energy used for electricity generation in 2011. It accounted for 71.1% of
electricity generation, while coal and lignite and hydropower represented 21.4% and 5.9% of generation. Fuel oil
and diesel took small portions of 1.4% and 0.2% of generation.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Figure 11: Comparison of energy sources for electricity generation to national grid in 2011 (Numbers: [6], Graph: [Annex Power])
The monthly peak demand in electricity generated by EGAT and the IPPs for January 2009 through March 2012 is
shown in Figure 12 below. This figure is excluding the generated amount of energy from renewable and
conventional SPP’s and VSPP’s, which amounts to a total of 16,639 GWh. The annual peak demand normally took
place in summer, which was April, May, and June. The annual peak demand was in April in 2009, and in May in
2010 and 2011. The annual peak demand consistently increased every year except in 2011, which was slightly lower
than that in 2010. They were 24,009.9 MW in 2010 and 23,900.2 MW in 2011. On March 23, 2012 the electricity
supply by EGAT and IPP was 24,464.7 MW. It was reported later that the latest peak demand of the whole country
was 26,121 MW on 26 April 2012.
Figure 12: Monthly peak demand in 2009, 2010, 2011, 2012. [7]
It was reported in DEDE’s annual report 2011 that the total electricity consumption by end-users in 2011 was
148,700 GWh. The electricity consumption in the Bangkok Metropolitan Region (BMR) was 44,191 GWh or 29.7%
of the whole country consumption, while the customers outside BMR consumed the rest: 104,509 GWh, or 70.3% of
the total consumption. By sectors, industry was the largest consumer with 63,418 GWh (42.7%), while commercial
sector, and residential sector consumed 51,019 GWh (34.3%) and 32,920 GWh (22.1%), respectively. The
agricultural sector and others took much less than the other three sectors, consuming 304 GWh (0.2%) and 933
GWh (0.6%) respectively. A small amount of electricity of 106 GWh was consumed by sky train, subway and Airport
Rail Link.
35
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
2. Relevant Energy Institutions
Thailand’s energy related institutions are generally divided into governmental and private sector organizations as
follows.
Governmental Organizations:
Transmission and Distribution Utility
■
Provincial Electricity Authority (PEA)
■
Metropolitan Electricity Authority (MEA)
General Utility
■
Electricity Generating Authority of Thailand (EGAT)
Relevant Government Agencies in the Energy Sector
■
Energy Regulatory Commission of Thailand (ERC)
■
Department of Alternative Energy Development and Efficiency (DEDE)
■
Energy Policy and Planning Office (EPPO)
Private Organizations:
General Utility
■
Independent Power Producers (IPP)
■
Small Power Producers (SPP)
■
Very Small Power Producers (VSPP)
Figure 13: Thailand Energy Related Institutions Overview [8]
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
1. Provincial Electricity Authority (PEA)
“The Provincial Electricity Authority (PEA) is a government enterprise under the Ministry of Interior, established
under 1960 Act by the Royal Decree executed on 20th September 1960. […] The authority’s responsibility is
primarily concerned with the generation, distribution, sales and provision of electric energy services to the business
and industrial sectors as well as to the general public in provincial areas, with the exception of Bangkok,
Nonthaburi and Samut Prakran provinces. The PEA has expanded electricity supply to all areas covered 73
provinces, approximately 510,000 km2, accounting for 99% of the country’s total area.” Further information can be
found at www.pea.co.th.
2. Metropolitan Electricity Authority (MEA)
The Metropolitan Electricity Authority is a government enterprise under the Ministry of Interior. Established in
1958, this organization was responsible for generating and selling electrical power in the metropolitan area until
1961, when the generating aspect was transferred to EGAT. MEA provides high-class service while laying emphasis
on sustainable growth of related business as well as responsibility for society and the environment. Further
information in regards to MEA can be found under www.mea.or.th.
3. Electricity Generating Authority of Thailand (EGAT)
“The Electricity Generating Authority of Thailand was established on May 1, 1969.” It presently is the state
enterprise under the Ministry of Energy. EGAT presently builds, owns and operates several types and sizes of power
plants across the country with a combined installed capacity of 13,617.10 MW, accounting for about 47.8 percent of
the country's 28,479.00 MW generating capacity. EGAT also purchases electric power from private power
companies and neighboring countries. Further information in regards to EGAT can be found under www.egat.co.th.
4. Energy Regulatory Commission of Thailand (ERC)
“The Energy Regulatory Commission of Thailand (ERC) is appointed as the independent regulatory agency. The
foundation of all functions and responsibilities follows the enactment of the Energy Industry Act B.E. 2550 (2007).”
ERC aims to work independently and separately from policy framework so as to ensure equality and fairness
between consumers, producers, and other relevant interest groups. Its primary functions and duties are to oversee
the regulations that deal with electricity systems of generation, transmission, distribution, and their system
operator. In particular, ERC's main objectives consist of monitoring energy market conditions by tariff review,
licensing, approval of power purchase, dispute settlement and fulfilling its mandate to counterbalance the parties
and ensure maximum interests of the people and the country. Further information in regards to ERC can be found
under www.erc.or.th.
5. Department of Alternative Energy Development and Efficiency (DEDE)
“The Department of Alternative Energy Development and Efficiency (DEDE), Ministry of Energy, has as its mission
to support and promote clean energy production and consumption that is consistent with the situation in each area,
which is cost effective and sustainable. It aims to develop clean energy technologies commercially for both domestic
consumption and export, including creating co-operation networks that will lead Thailand to an energy knowledge
base society so that the country’s economy will be secure and the people can live in social harmony and sustainable
happiness. The duties of DEDE prescribed under the Act on Administrative Organization of the State Affairs are: to
be responsible for energy efficiency promotion, energy conservation regulation, energy sources provision,
alternative development of integrated energy uses, and energy technology dissemination in a systematic and
continuous manner, in order adequately to respond to demand from every sector at optimal costs beneficial to the
country’s development and the people’s better living standard. The duties prescribed under The Energy
37
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Conservation Promotion Act B.E.2535 are: to be responsible for regulation, supervision, promotion and assistance
provision to the designated factories and buildings to comply with laws and regulations for efficient use of energy
and savings.” Further information in regards to DEDE can be found under www.dede.go.th.
6. Energy Policy and Planning Office (EPPO)
“The Energy Policy and Planning Office (EPPO) is a pivotal agency under the Ministry of Energy, being tasked with
the development of national energy policies and planning, including measures to manage and administer the
energy sector, with due consideration of economic and social development, consistent with environmental
protection. In order to undertake the mentioned tasks, it is crucial to acquire substantial information and data for
analysis and development of recommendation on energy issues to be presented to management. EPPO, therefore,
has developed an energy statistics database system with a view to following up both national and global energy
situations. Further information can be found under www.eppo.go.th.
7. Independent Power Producer (IPP)
IPPs = Independent Power Producers (Capacity sold to EGAT ≥ 90 MW)
“With the attempt to promote competition in this industry, the government has promoted private sector
participation in the generation business in the form of Small Power Producers (SPPs) and Independent Power
Producers (IPPs) since 1992. Under the power purchase agreements, both SPPs and IPPs are required to sell
electricity to EGAT that it subsequently transmits to the distributors. In December 1994, EGAT announced for the
first time that it would purchase electricity from IPP sectors, for a total of 5,800 Megawatts. During the years 19962003, seven IPP projects signed contracts with EGAT to sell a total of 5,944 Megawatts of electricity to EGAT.”
8. Small Power Producer (SPP)
SPPs = Small Power Producers (Capacity sold to EGAT < 90 MW)
“In 1992, the same year as the IPP program, Thailand also began the Small Power Producer (SPP) Program. SPP
generators connect to PEA or MEA lines and sell electricity under power purchase agreements (PPAs) to EGAT.
SPP generators are divided into two categories: firm and non-firm, depending on their ability to guarantee
availability. Firm fossil fuel-fired SPPs must generate for at least 7,008 hours per year and must generate during
the months March, April, May, June, September and October. SPPs could sell up to 90 MW of capacity and employ
Combined Heat and Power (CHP) or Cogeneration systems burning conventional fuels (i.e. natural gas and coal) or
renewable technologies using non-conventional resources (i.e. waste, agricultural residues, biomass and solar
energy) to generate electricity.”
9. Very Small Power Producer (VSPP)
VSPPs = Very Small Power Producers (Capacity sold to MEA/PEA < 10 MW).
“Very Small Power Producers (VSPPs) are private power producers selling electricity to the Metropolitan Electricity
Authority (MEA) or the Provincial Electricity Authority (PEA) with generating capacity of less than 10 MW. They
can be Combined Heat and Power (CHP) or Cogeneration systems or renewable technologies using nonconventional resources (i.e. waste, agricultural residues, biomass, and solar energy). In 2002, the Government of
Thailand introduced policies to promote power generation from non-conventional resources and renewable energy
with a very small capacity of not greater than 1MW selling electricity to power distribution utilities. Considering the
advancements and high potential of renewable technologies, it was found that VSPPs using renewable energy are
also feasible for the generating capacity greater than 1 MW. As a result, NEPC agreed to enlarge the VSPP’s contract
38
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
capacity from 1 MW to 10 MW on 4 September 2006. As well as SPPs using renewable technologies, all VSPPs are
eligible for the “Adder” scheme. (The “Adder” is the additional amount of money, paid to the producer, on top of the
actual electricity price per kWh. It varies with different types of technology.) It was anticipated that power
generation from renewable energy would increase dramatically and be strategically important to the sustainable
development of the country.”
3. Energy Related Policies
1. Power Development Plan
“EGAT’s Power Development Plan (PDP) is a 20-year investment plan that specifies which power plants and
transmission lines are to be added at what time. A new official PDP is issued about once every two years by EGAT.
EGAT’s PDP is reviewed by the Ministry of Energy and approved by the National Energy Policy Council, then by the
Cabinet. After the approval of its PDP, EGAT then undertakes to develop and expand the power system according to
the plan.”
The current Thailand Power Development Plan or PDP 2010 embraces the horizon of 2010 to 2030 and the total
contract capacity at the end of 2030 is 65,547 MW comprising
1. 29,212 MW existing capacity as of December 2009,
2. 54,005 MW of future added capacity from EGAT power plants, power purchase from IPP, SPP and VSPP,
3. 17,671 MW of retired power plants and expiration of Power Purchase Agreement (PPA) term.
Generating Capacity in 2021-2030: Power projects coming online during this period are to satisfy the country’s
demand, though not yet assigned to particular sites. The total added capacity of 32,411 MW can be categorized as
follows:
■
New Gas Fired Combined Cycle Power Plant (10,400 MW)
■
New Clean Coal Thermal Power Plant (6,400 MW)
■
New Nuclear Power Plant (4,000 MW)
■
EGAT’s Renewable Energy Projects (96 MW)
■
Power Purchase Projects from SPPs (3,800 MW)
■
Power Purchase Projects from VSPPs (1,718 MW)
■
Power Purchase Projects from Neighboring Countries (6,000 MW)
The new PDP was designated as a “Green PDP” which highlights greenhouse gas emission reduction and promotes
efficient energy utilization and electricity production through cogeneration systems, in addition to system
reliability. Smart Grid systems could have a significant impact these areas.
EGAT, as a member of the subcommittee and the working group, formulated the Thailand Power Development Plan
2010–2030 (PDP 2010) within the following frameworks:
■
Extend the planning horizon from 15 years to 20 years (2010-2030)
■
Revise Thailand’s Load Forecast based on National Economic and Social Development Board (NESDB)’s
long-term economic growth
■
Analyze and integrate the effects of DSM projects in both the load forecast and the generation expansion
planning
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
■
Combine the re-estimated amount of power purchase from renewable energy regarding AEDP 2012-2021
into the plan
■
Review the amount of power purchase from SPPs in 2009-2015 and further regarding the NEPC’s
resolution on 24 August 2009 to promote power production by cogeneration system
■
Reconsider power import from neighboring countries and identify only promising projects
■
Lower greenhouse gas emissions.
PDP 2010 was approved by National Energy Policy Council (NEPC) and endorsed by the Cabinet on 12 March 2010
and 23 March 2010, respectively.
2. Thailand’s 20-Years Energy Efficiency Development Plan (2011-2030)
“Thailand’s 20-Years Energy Efficiency Development Plan (EEDP) (2011-2030)” released on 25th of February 2011
by the Ministry of Energy in Thailand, is an investment plan with the target to reduce the actual energy intensity in
Thailand. The investment in energy conservation each year will result in energy saving and cumulative avoided
carbon dioxide (CO2) emissions in following years throughout the 20-years period of this EEDP. The main
objectives and key challenges are as listed below. The full report can be seen at http://www.eppo.go.th/encon/ee20yrs/EEDP_Eng.pdf.
■
Reduce energy intensity by 25% in 2030, compared with that in 2005.
■
The economic sector with priority for undertaking energy conservation is the transportation sector.
■
The EEDP is aimed at reducing energy elasticity from an average of 0.98 in the past 20 years to 0.7 in the
next 20 years.
Emphasis will be placed on:
■
Measures that will bring about market transformation and energy consumers’ behavioral change, by
enforcing energy efficiency labeling for equipment/appliances, buildings and vehicles so as to provide
options for consumers.
■
Large-scale energy businesses, e.g. those in the electricity, oil and natural gas industry, will be required to
implement energy conservation promotion measures to encourage their customers to reduce energy use by
a specified minimum standard (Energy Efficiency Resource Standards: EERS)
■
Assisting measures, both financial and technical, will be provided for small operators, e.g. SMEs,
particularly the provision of funding via the Standard Offer Program (SOP) and technical assistance via the
Energy Efficiency Resource Standards (EERS).
The private sector will become an important partner and greater roles will be entrusted to local administration
organizations. In addition, government agencies must set a good example of energy conservation practices.
3. Power Purchase Agreement (PPA)
The Power Purchase Agreement (PPA) between the private sector and EGAT for a power plan was introduced in
2006 with, at the beginning, insufficient defined limits to apply for those. The direct consequence is that many
private people applied for it without having enough resources to build up a Power Plant. As example, the demand of
PPAs for solar power, was always higher than the available amount of PPAs, the total Volume of PPAs was
increased and is currently at 2,000 MW for Solar Systems, with a demand of around 3,787 MW.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
To limit the audience the following regulations were introduced.
“The power purchase agreement conditions of IPPs and SPPs and VSPPs consisted of the following:
The private sector needs to prioritize on clean fuel, stable price, ascertain supply, and agree with the policy on
promotion of fuel diversity.
The private sector can propose the project location but needs to follow the zoning criteria in line with the National
Economic and Social Development Plan (NESDP), which is to expand the development to regional, and customer
location, future electricity need and distance from EGAT transmission line system.
Since EGAT is the one who demands production of power plant as well as power delivery to the system, hence, the
tariff structure is set up as two part tariff, consisting of Availability Payment (to be paid no matter whether the
power plant is operated or not) and Energy Payment (to be paid when the power plant is operated, which will be
tied to fuel price).
The private power plants under the conditions of IPP and SPP need to follow environmental standards assigned by
the government, and an Environmental Impact Assessment (EIA) report is required for approval from the Office of
Natural Resources and Environmental Policy and Planning prior to project start-up.”
4. Pricing Structure
The following reviews on Pricing Structure and Bulk Supply and Retail Tariff Structure generally describe each
category of pricing and tariff; however, even if there is no current pricing related to Smart Grid, this will definitely
be an important aspect to take into consideration when implementing Smart Grid in the country.
In determining the electricity tariff structure, the following criteria have been taken into consideration:
■
marginal costs,
■
load pattern,
■
revenue requirements of the power utilities and financial criteria,
■
and social criteria for the electricity tariff determination
Due to the changing load pattern, in early 1997 the Time of Use (TOU) rate was introduced by the three power
utilities. Under the TOU rate, the tariffs would be expensive during the peak period and would be cheaper during
the off-peak. In addition, Saturday and Sunday were considered to be the off-peak period. Full details of the scheme
are given in Appendix B.
Structure of the Bulk Supply Tariff
The main details and an introduction to the structure are given below. Further details can be taken from Appendix
B if needed.
Bulk Supply Tariff by Time of Use (TOU Rate)
The tariff structure of the bulk supply that EGAT sells to the MEA and PEA will be without surcharge
onto/deduction from the bulk supply tariff (BST) imposed by EGAT on the sale to the two distribution utilities.
Instead, the subsidization between the MEA and PEA will be in the form of a lump sum financial transfer. The
generation and transmission costs comprise the BST.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Automatic Adjustment Mechanism (Ft)
On 29 January 1991 the cabinet passed a resolution approving the Automatic Adjustment Mechanism in order to
have the actual costs reflected by the tariffs and to reduce impact of the fuel price volatility on the power utilities’
financial status. According to EPPO, “Ft” stands for Fuel Adjustment Charge. Thus, the power utilities can adjust
electricity tariffs to correspond with the changing actual costs which are beyond control of the utilities, including
costs of fuel and energy purchases, impact of foreign exchange rates, affected revenues of the three power utilities,
inflation, and DSM expenditures.
Retail Tariff Structure
The calculation of the retail electricity tariffs consists of two parts as follows; further details can be found in
Appendix B.
Base tariff:
The base tariff includes the costs of generation, transmission, and distribution. The tariff structure for generation,
transmission, distribution and retail is clearly unbundled. Tariff varies according to each consumer category with
its own particular group’s load pattern. There are currently eight categories of users. The electricity tariff structure
is different in each category. For example, a time of use (TOU) rate is applied for medium and large general
services, whereas a progressive rate is applied for the residential and small general services group.
Automatic Adjustment Mechanism (Ft):
The calculation of base tariff rests upon certain assumptions regarding fuel prices, inflation rates, exchange rates,
operating efficiency and other factors, which might not reflect actual costs at the time of consumption. The
principle of Ft is to have the actual costs reflected by the tariffs. The mechanism allows for adjustment of electricity
tariffs to correspond with the changing actual costs, which are beyond the control of operators. Ft value will be
adjusted every four months taking into account factors such as costs of fuel and energy purchased.
5. Demand Side Management
Demand Side Management (DSM) is the management of electricity utilization or promotion of electricity energy
efficiency, in general. DSM is a supplement to planning and developing a more efficient system of electricity
generation, transmission and distribution and is an important concept needed when implementing Smart Grid.
With regards to smart meter or AMI, which is part of Smart Grid system, it is certain that the concept of DSM is
necessary in order to manage the electricity utilization.
6. Ten Years Alternative Energy Development Plan (Year 2012 – 2021)
The objectives of the 10 Years Alternative Energy Development Plan are:
■
To utilize alternative energy as a major energy supply of the country for replacing oil imports,
■
To increase the energy security of the country,
■
To promote an integrated green energy utilization in communities,
■
To enhance the development of the alternative energy technology industry,
■
To research, develop and encourage high efficiency alternative energy technologies.
The objective of AEDP is to increase the portfolio of renewable energy to 25% of the final energy consumption in
the next ten years. At the end of the plan, the portion of renewable energy in power generation shall be 2.4 % or
5,608 MW.
42
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
The 10 Years AEDP is a revision of the Renewable Energy Development Plan (REDP), which had been published
earlier. Figure 14 gives an overview of the AEDP and Table 4 shows the differences to the old REDP.
Figure 14: Alternative Energy Development Plan [14]
Table 4: Comparison of the new AEDP and the old REDP [15]
43
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
5. Smart Grid Activities in Thailand
The government offices and institutions introduced in Chapter 4.2 are involved in the energy supply and services in
Thailand. Those who have studied or planned for Smart Grid implementation are Energy Policy and Planning
Office (EPPO), Ministry of Energy, Provincial Electricity Authority (PEA), Metropolitan Electricity Authority
(MEA), Electricity Generating Authority of Thailand (EGAT) and PTT Public Company Limited. The others may
have started similar studies, but have not announced any plans. The plans and roadmaps of the organizations
mentioned above are summarized in the following paragraphs.
1. Smart Grid Policy/Activities by Governmental Institutions
The following will give information on the different proposed smart grid policies and road maps from different
players in the market. The funding for the studies of EPPO and PEA must be under their annual budgets and the
source of investment after the studies has not yet been decided. However, normally PEA and MEA invest out of
their annual incomes for example.
1. Energy Policy and Planning Office (EPPO), Ministry of Energy
EPPO has engaged Energy Research Institute (ERI) of Chulalongkorn University to prepare a Smart Grid
implementation plan and roadmap, which will be the guideline for future investment for Smart Grid facilities. The
study is expected to complete by the middle of 2013.
2. Provincial Electricity Authority (PEA)
PEA has also developed a Smart Grid roadmap with Energy Research Institute (ERI) of Chulalongkorn University,
and has planned to implement Advance Metering Infrastructure (AMI) in Pattaya. The road map is divided into
areas of application, such as advanced metering and communication, distribution system automation, substation
automation, utility enterprise applications, and system integration. [16]
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
PEA Smart Grid
Future
Power Flow
Central Power Plant
Industrial Plants
Offices
Existing
Houses
Figure 15: PEA Smart Grid [16]
PEA has planned to implement Smart Grid facilities in three stages. The first stage is “Planning and Pilot Project”
which will take place during 2012-2016. The second stage, which will be implemented during 2017-2021, is “Large
Scale Expansion”. The last stage is the “Optimal Stage” which is planned for 2022-2026. Large investments are
planned for the implementation of Smart Grid, 10 billion Baht for the first stage, then 40 billion Baht and 65 billion
Baht for stage 2 and stage 3, respectively.
Road Map
100
Smart Level
Stage 3
2565-2569
Optimal Stage
70
Stage 2
2560-2564
Large Scale
Expansion
30
Stage
1
2555-2559
Planning & Pilot
Project
Year
2555-2559
2560-2564
2565-2569
Figure 16: Three stages for Smart Grid implementation [16]
45
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Stage 3 (2022 – 2026)
Stage 2 (2017 – 2022)
Stage 1 (2012 – 2016)
In the following table the activities and plans of PEA are reported according to the different areas of Smart Grid.
Supply
Grid
Demand
Micro grid (Community Power
Network)
Pilot Smart Grid at Pattaya City
AMI pilot at Pattaya city
(1,000,000 units)
Pilot storage
Pilot green and low carbon smart
island
To limit and manage blackouts
Micro grid at Kood island,
Maehonsson
Intelligent street lighting / public
lighting
Electricity networks in 4 cities
with automated systems
Pilot electric vehicle charging
stations
Integration of enterprise systems
AMI complete in central region
and 9 other large cities
(3,000,000 units)
Completion of substation
automation
Energy management: Covering
all large and medium cities.
Expand fully automated network
covering major cities across the
country
Domestic consumers can
produce their own electricity;
surplus can be sold to the utility
Supply of renewable energy
sources and energy storage
AMI across the country
(15,000,000 units)
Use of electricity transportation
available extensively
Virtual power plants
Automation electricity networks
nationwide / self healing features
enabled
Power users can buy or sell and
choose to buy electricity from
different suppliers
Balance and forecast system of
production and energy
utilization
Adequate cyber security system
Two way power supply of
electricity vehicles (V2G)
Energy management optimized
Table 5: PEA’s 3 stage Smart Grid implementation plan [9]
Besides this, EPPO, together with PEA, has supported a demonstration smart micro grid and smart metering
system at King Monkut’s University of Technology Ladkrabang.
PEA plans to implement another demonstration Smart Grid project in collaboration with King Monkut’s University
of Technology Ladkrabang at Pattaya City. This would be a micro-grid, which connects the electricity generation
from renewable energy (PV), wind simulation and a diesel generator with the main grid.
46
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
3. Metropolitan Electricity Authority (MEA)
MEA has indicated projects that modify and improve the existing facilities in relation to efficiency in operation,
customer services, and system security and reliability, such as SCADA for the transfer of information between
stations and central control room, Energy Management System (EMS) for the analysis of power flow and
contingency for the supply side, substation automation, Distribution Management System (DMS), and Automatic
Meter Readings (AMR). MEA is now in cooperation with a research unit in a university for a study on impacts of
the connections of VSPPs on grid for the preparation of future VSPP connections. But so far no concrete timetable
for future investment projects in Smart Grid technologies have been announced by MEA.
Although MEA has been revolving into Smart Grid technology for years, there are certain emerging technologies
worth demonstrating, e.g. energy storage, demand response and control, and underground system monitoring.
Inside MEA the IT planning department is responsible for the specification of the technologies. The main contact
person is currently Mr. Praemsak Lothong, who is an electrical engineer.
4. Electricity Generating Authority of Thailand (EGAT)
EGAT has utilized modern technologies like SCADA, protection systems, and communication systems, such as
power line carrier and optical fiber in overhead ground wire (Source : Smart Grid for Future System, presented by
Dr. Suthep Chimklai). EGAT has set up a Smart Grid work group to study Smart Grid applications for future
implementation, which includes interoperability standards, renewable energy integration, and effects of electric
vehicles (EVs). EGAT’s Smart Grid working group has identified the new technologies to be applied as digitalized
substation, Wide Area Monitoring System (WAMS), Special Protection Scheme (SPS), and Automatic Fault
Analysis (AFA). But so far no concrete timetable for future investment projects in Smart Grid technologies have
been announced by EGAT
5. PTT Public Company Limited
PTT has an interest in Electric Vehicle (EV) charging stations, and has set up a demonstration station to verify the
applicability of the technology. There is a plan to continue the verification of the technology and to expand the
number of EV charging stations, which can be located at PTT gas stations and department stores’ parking lots. But
so far no concrete timetable for future investment projects in Smart Grid technologies have been announced by PTT
6. Additional Smart Grid Activities
The Solar Power Company Group (SPCG) has engaged with ENEGATE Co., Ltd., a company from Japan, and plans
to launch a smart energy management system next year. Although details of the smart energy management system
are not disclosed, the system will enhance energy efficiency for end-users.
2. Objectives to Develop Smart Grid Market in Thailand
Different energy related organizations have different objectives in the implementation of Smart Grid systems,
which can be summarized as follows:
■
Self-Healing to correct problems early
■
Interaction with consumers and markets
■
Optimization to make best use of resources
■
Prediction to prevent emergencies
47
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
■
Distributed assets and information
■
Integration to merge all critical information
■
More Security from threats from all hazards
There have been plans for applications of Smart Grid in Thailand being studied by utilities and EPPO. The major
objectives are to enhance their facilities for efficiency improvement, operation cost reduction and better services for
their customers. The improvements, which can be achieved from the application of Smart Grid may be highlighted
as follows.
System reliability enhancement
Smart Grid, which allows two-way communication, remote monitoring and control, and automatic responses will
improve the system’s reliability by reducing interruptions and facilitating self-healing in the system. Utilization of
assets can be optimized through the deployment of Smart Grid.
Operation and maintenance cost reduction
With remote monitoring and control, operators will be alerted of disturbances and can have early access to
information concerning equipment conditions and early warnings of the risk of equipment overload. Preventive
maintenance can be planned and performed properly and in time to avoid equipment damage and major
maintenance. In addition, smart devices, which allow efficient operating conditions will help reduce losses in
transmission and distribution.
Distribution system efficiency improvement
Real time monitoring of the electricity distribution system allows prompt control and adjustments for better
balance of load flow and reactive power compensation. Interruptions are detected and corrected in shorter time,
and even islanding can be triggered to save the majority of customers from service interruptions. Power quality and
system stability will be maintained with minimum interruptions.
Renewable energy integration
Electricity supplies of different sizes can be kept connected to the grid with the application of micro-grids and
advanced protective devices. Smart distribution system management will also provide flexibility to cope with
fluctuations of the electricity supply from renewable energy.
System security improvement
Multiple layers of protection devices and sensors can be included to enhance the system security. The Smart Grid
will facilitate more connections of distributed generators, which increases the security of the system.
Customer service management
Automated meters with two-way communication can allow remote control of household appliances and
consumption behavior. Fault detection and quick repair are also possible. Customers’ loads can be managed to their
benefit. The utilities will be able to access information of their customers through two-way communication. In
return they are able to advise their customers of the specific conditions for efficient operation.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Electricity peak load management
Smart Grid technology will enable demand response and peak load management, which shifts the customers’ load
from peak to off-peak periods, and reduces their cost of electricity consumption. Energy storage can be
accommodated to store excess energy for use during peak periods.
The Smart Grid definition in Thailand can be compared with that of IEA as in Figure 3 in Chapter 3.2.
3. Results from Interviews
The interviews were designed to include stakeholders who represented all relevant organizations and companies.
The interviews were carried out in person successfully, except for ERC and EGAT who were not available for
interviews. The full notes of all interviews are attached in the Appendix C.
Four aspects, which are hindering the actual development of the Smart Grid, were mentioned in almost every
interview
1. Lack of knowledge and willingness on the private side
2. Missing regulations and a missing common Smart Grid plan including budget regulations
3. Unwillingness of the industries due to unknowns and non-visible Key Performance Indicators (KPI’s)
4. Lack of expertise and undeveloped technologies for Thai and Vietnamese infrastructure
All interviewees pointed out that a realization of Smart Grid will only be possible if the following points are in place:
■
further education of the private sector
■
clear KPI’s
■
benefits for industrial utilities
■
benefits for the private sector
■
common Smart Grid plan, including regulations by the government
These factors will have to be implemented by demonstration projects and business opportunity researches. Experts
will be needed to bring the know-how to Thailand in order to build up a sufficiently trained experts and technicians.
Another important factor is data security and upcoming concerns, which are still limited due to the lack of interest
and knowledge in Smart Grid. Official regulations should however be prepared and try to implement regulations
before these concerns grow and may cause additional problems.
Current installations and applications
SCADA, which is considered as one of the major means for remote communication and control, has been installed
and utilized in Thailand for a long time. MEA has used SCADA for the acquisition of information between stations
and central control room. The system has been revised and updated three times. PTT has also transferred
information from its natural gas valve stations through SCADA.
As a power distributor, MEA acquires electric power mainly from EGAT, gets a small amount of power from SPPs
and VSPPs, and distributes the power to its customers. MEA has been using an Energy Management System (EMS)
to analyze power flow and contingency on the supply side, which is planned to be revised with inclusion of a
standard communication protocols like DNP3, and ICCP for communication between MEA and PEA. Substation
automation, which includes communication through an intranet and fiber optic lines in compliance with IEC
61850, is gradually being installed for MEA’s substations, at a rate of 10-20 substations a year. On the distribution
side, a Distribution Management System (DMS), which enables remote control of feeders, medium voltage load
break switches, manages distribution transformers, and supply of medium voltage customers, is installed. For
49
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
efficiency and operation improvement 8,000 units of Automatic Meter Readers (AMR), which communicate
through fiber optic lines, are being procured for installation for TOU customers. It is planned by MEA to procure
and install 23,000 more units of AMR next year.
Planning for future installation
PEA has had its Smart Grid roadmap completed by Energy Research Institute (ERI) of Chulalongkorn University,
and has announced the three stages of implementation. The first stage, 2012-2016, is for planning and pilot
projects. The planned pilot projects include automated electricity networks or micro-grids to support Smart Grid
and electricity storage, smart meter infrastructure, smart offices, energy management systems, and real time power
trading (buy or sell from/to different suppliers). Stage II, 2017-2021, will expand the pilot scale projects into largescale facilities. Those are asset management, Mobile Workforce Management (MWM) system, substation
automation, automated networks covering major cities, development of renewable energy and energy storage,
Advanced Metering Infrastructure (AMI) deployment, applications for electric transportation, community lighting,
and bundled services, such as common billing, etc. Stage III, 2022-2026, is the optimal stage, which enables
nationwide automated electricity networks, large renewable energy resource integration, balance of energy
production and utilization, and intelligent two-way power supply of electric vehicles. A series of investment of 10,
40, and 65 billion Baht is planned for the tree stages respectively.
Independently from PEA’s roadmap, EPPO has engaged Energy Research Institute of Chulalongkorn University to
prepare a plan for Smart Grid application. State enterprises like EGAT, PEA, and MEA require EPPO’s
endorsement for their investments. The plan, which will be completed in mid-2013, will provide strategies and
guidelines for future investment and Smart Grid promotion. In addition, EPPO has also granted financial support
to the energy research group at King Mongkut’s Institute of Technology Ladkrabang (KMITL) for a pilot project to
transmit customers’ information from their power meters through a 3G mobile telephone system to the center. The
information is useful for energy efficiency improvement.
The Thai – European Business Association (TEBA) is currently developing a Smart Grid development plan for
Thailand in cooperation with the Senate of Kingdom of Thailand. For that reason TEBA started to set up a “Smart
Grid – Round Table”.
4. Issues/Barriers for Smart Grid Deployment in Thailand
This chapter identifies and explains issues and barriers currently existing in Thailand regarding Smart Grid
deployment.
Unavailable National Smart Grid Plan
Some of the utility providers and private companies are hesitant to invest in Smart Grid facilities, as there has not
been a firm official policy of Smart Grid. This hesitation will most likely remain until the middle of 2013, when
EPPO’s Smart Grid road map will be finalized, as explained in Sections 5.1.1 and 5.3. However, some utilities like
PEA and MEA have decided to invest already in certain parts of Smart Grid systems to improve their operational
efficiency.
Electricity Tariff Structure
The electricity tariff in Thailand is rather low compared with those in other countries; more detailed information
can be found in Chapter 4.3.4. This has been a governmental policy to keep the electricity tariff at a low level and to
subsidize electricity costs for some income classes. The low tariff will restrict the utilities’ income and in turn will
not encourage further investments, as the investments will require longer periods of time to be paid back. Smart
50
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Grid facilities are so capital intensive that their investment needs a strong justification. Reasonable pricing of
electricity is needed to promote energy efficiency and future investment.
Renewable Energy Promotion Programs
Although Smart Grid facilities are meant to accommodate the variable electricity levels supplied by renewable
energy, Smart Grids are designed for type and size specific renewable power plants. The promotion of renewable
energy power needs to be carried out in parallel with the design of the Smart Grid systems to achieve the maximum
efficiency of both the renewable energy power plants and the smart systems. It seems that the renewable energy
electricity generating plants are promoted under the Alternative Energy Development Program (AEDP), explained
in Chapter 4.3.6, for which DEDE is responsible, while the Smart Grid roadmap is under EPPO’s responsibility as
mentioned earlier. While drafting the road map, it is hoped that EPPO will take full acknowledgement of the AEDP
in order to avoid conflicts during implementation and to accommodate the renewable energy plan, since it has
already been developed and announced.
Communication and Compatibility among Different Utilities’ Facilities
Communication among utilities is one of the key factors for success in Smart Grid applications. EGAT is viewed as
the main generator, while PEA and MEA are the transmitters and distributors of electricity. The overall efficiency of
the system requires good communication among the parties involved. With communication compatibility, real time
communication, monitoring, and control can be achieved and hence the efficiency can be improved. The designs of
facilities of different utilities should be done in compatibility with others, in order to make an exchange of
information among utilities’ substations possible. Moreover, connectors in electric vehicle charging stations must
be versatile and usable with all brands of vehicles.
Investments from Private Sectors
Most of the Smart Grid related facilities included in the plan are relatively costly because they are equipped with
automation and modern communication, which allows two-way communication as well as remote monitoring and
control. These instruments can be justified for investments only in large and medium businesses, whose revenues
and sales margins are large enough to compensate the cost increments. In fact, one of the large businesses
expressed its concerns for positive return prior to deployment of the Smart Grid technology. For small businesses
whose revenues are comparatively low and households where additional expenses are difficult to justify, the high
cost of instruments and meters will be unaffordable. The cost of a unit of automatic meter reader (AMR) is rather
high and can be a burden to small customers, and perhaps even more difficult to justify if the units are required for
all customers.
Coordination Among Stakeholders
Energy related organizations in Thailand include the generators including EGAT, IPPs, SPPs, and VSPPs. The
installations and implementations of Smart Grid facilities involve almost all related organizations. Not only do the
compatibility of Smart Grid design for all parties’ facilities and the efficiency of the system matter, but the
coordination of all related parties is also a significant factor for successful system operation. EPPO will have to take
the position to lead the process of planning, design review, and coordination of all parties.
Capacity Building for Manpower
Smart Grid systems mainly include hardware and software systems for supply, transmission, and distribution of
electricity. The operation and maintenance of these systems are crucial in the later phase. Capacity building for
future manpower for operation and maintenance has to be planned and trained in parallel with other activities.
There are specific courses in Smart Grid offered in many famous universities in other countries. Smart Grid system
suppliers also offer training for operation and maintenance. The know-how transfer could also be realized by
setting up cooperation projects with industry experts and also “round tables”.
51
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
6. Energy Situation in Vietnam
1. Overview about Energy Situation and Energy Market
1. Vietnamese Energy Market
Basically, the current infrastructure of Vietnamese grid meets basic electricity demand of the national economy.
However, electricity demand growth of nearly 14% annually is causing pressure on the construction of new power
plants and is also a threat to the national energy security.
Figure 17: Evolution of Vietnamese power capacity & demand from 2006-2009 [17]
Some of the main challenges for Vietnam's power sector are indicated in the “Electricity Planning VII”, approved
by the Prime Minister in Decision No. 1208/QD-TTg on 21/7/2011,[20] as follows:
Pressure on investment:
Electricity Planning VII determined: in the period 2011-2020, investment for electricity sector is expected to be
around 929.7 trillion VND ($48.8 billion); investment plan for the period 2021-2030 is 1429.3 trillion VND ($75
billion). The demand of large amount of capital investment in the electricity sector over the next 20 years is very
difficult and challenging. This demand is much higher than the capital raised from non-government financial
sources. For example, the capital raised over the last 5 years (2006-2010) for the electricity sector is 208.6 trillion
VND (only 44.9% of the average annual investment of the period from 2011-2020, 29.2% of the average annual
investment of the period from 2021-2030). Figure 18 shows that Vietnam relies very much on an extensive
expansion on coal power plants in the range of 80,000 MW (!) in the next 15 years, while the renewables will
contribute only very marginal proportion.
52
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Figure 18: Power Development Plan [17]
Imports of energy:
In 2004 Vietnam started to import electricity directly from China. In the future, Vietnam will continue to import
electricity from China and from hydropower plants in Laos and Cambodia. In terms of primary energy, Electricity
Planning VII, Vietnam may start to import coal from 2015. By 2020, of the total power of 75,000MW, 2.6% of
thermal power is produced from liquefied petroleum gas (Liquid Natural Gas - LNG) and 2.1% from nuclear power.
However, Vietnam has to import both liquefied petroleum gas and nuclear fuels because it does not have the
resources and/or guaranteed technologies for production. Figure 19 indicates the share of the installed capacity mix
by owners and fuel types for the year 2010. The installed capacity, including imports, was 21.297 MW and the
available capacity was 19.713 MW.
53
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Figure 19: Shares of energy by owners and sources (Data taken from [19])
The increasing requirement of reliability and power quality:
In addition to demand growth of approximately 14% per year in recent years, electric customers have increasing
interest in power reliability and quality. Some industrial customers such as electronic circuit manufacturers, steel
mills, and cement factories require high power quality (frequency, voltage). However, satisfying these requirements
is very challenging due to poor grid infrastructure, which does not guarantee reliability and backup level.
The reaction of society to increasing electricity prices:
The “Electricity Master Plan number 7” [20] determined electricity price is based on market guidance mechanism
with Government regulation and adjustment. According to this plan, the retail price of electricity is to be adjusted
gradually to achieve long-term marginal costs in 2020 at 8-9 US cents/kWh (current retail price of about 6.5 US
cents/kWh). Retail price is to ensure the recovery of costs and a reasonable profit for re-investment to expand
production. However, the increase in electricity prices will cause short-term reactions from society, especially from
consumers in the time of economic crisis.
The development of the electricity market in Vietnam:
The Electricity Law specifies the level of development of the electricity market in Vietnam and the Prime Minister
issued Decision No. 26/2006/QD - dated 26 May 01, 2006 [21] approving the roadmap, the formation conditions
and development of the electricity market in Vietnam. The market will be formed and developed through three
levels:
54
■
Level 1 (2005-2014): the competitive electricity generation market;
■
Level 2 (2015-2022): market competitive wholesale electricity;
■
Level 3 (from 2022): the competitive electricity retail market, (i.e. after 2022 electric customers may decide
to participate in electricity trading in the competitive retail electricity market)
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Figure 20: Roadmap of energy market development [17]
Environmental protection:
Environmental protection requirements are becoming increasingly important as Vietnam is on the list of the
countries most affected by climate change. The electric power industry is one of the sectors with the largest CO2
emissions especially if the addition of 80,000 MW coal power plants will be realized in future.
2. Vietnamese Energy Infrastructure
In comparison with the Smart Grid reference model, the power system infrastructure layer of current Vietnamese
electricity system has full configuration of components including: power plants, power transmission, customer's
distribution grid, from which the customer load are mainly passive load. Distributed power sources and electric
vehicles have negligible numbers. The following sections describe the specific status of each component.[18]
Power generation
The total installed capacity of the national electric power system by the end of 2011 was 24,559 MW (of which
23,559 MW is the capacity of the power plant and 1,000 MW is imported from China). Of the total capacity, the
capacity of the hydro power plant is the largest (about 41%) followed by the capacity of the gas turbine power plant
(about 31%), the capacity of the thermal coal power plant (about 18%) and finally the capacity of the thermal gas
power plant (about 2%), thermal oil (about 2%) and other types of electricity production (also about 2 %).[
55
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
The national power grid:
The Vietnamese grid contains transmission and distribution grids. The transmission grid consists of 500 kV, 220
kV, 110kV lines and substations that receive power from the power plants and transmit to the national electricity
system. The distribution grid consists of lines and substations of 35 kV or less.
Figure 21: Vietnamese national grid [22]
Transmission grid
The 500 kV power grid started operations in 1994 and connects the electrical system of three areas, North, Central
and South, into a unified system. Through the end of 2011 the 500 kV grid continues to be constructed to shape the
backbone of the national electricity system, which connect all areas and connects load centers to the power
generators. Its total length is 4,132 km and the total number of transformers is 29 units with a total capacity of
13,950 MVA.
220 kV grids serve as the main transmission voltage levels in each of the three areas. The 220 kV grids have
extended across the country, forming 220 kV power rings to power all regions. The total length of the current line is
9388 km and the total number of transformers is 162 units with total capacity of 25,839 MVA.
110 kV transmission grids transmit power from the power plant to the national electricity system. The total length
of the current line is 13,141 km and the total number of transformers is 787 units with total capacity of 30,284 MVA.
[18]
56
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
The main weaknesses of the transmission lines are the following, which require upgrade:
■
Some parts of the transmission grid do not meet reliability requirements of power supply, do not comply
with the criteria n – 1 backup, or have small cross-section wires.
■
ICT infrastructure technology for operating the transmission grid is not comprehensively invested at some
points.
■
The reliability of the grid is not high; there is frequently congestion or overload on the transmission grid.
The distribution grid of high voltage (HV), medium voltage (MV) and low voltage (LV)
In the current distribution grid voltage levels of 110, 35, 22, 15, 10 and 6 kV co-exist. The grid structure is not evenly
distributed between the three northern, central and southern areas; between cities and towns, urban and rural; and
between the power companies. This is a major difficulty in the operation as well as the application of technical
solutions for comprehensive technology investment in the power distribution grid.
The operation of 110 kV grids is relatively stable. In major cities, especially in high density areas, the power sector
has implemented many measures to invest in new construction and upgrades. Most of the substations are powered
from two or more sources thus increasing their reliability. In some low-load areas, for example mountainous and
rural areas, due to restrictions on investment the 110 kV grid has not been renovated and upgraded, so the
reliability of the 110 kV grid is not high and does not comply with the “n – 1” backup standard.
The medium-voltage power grids of 35 kV or less still have area-specific characteristics. Although there is strategic
orientation of using a common voltage of 22 kV in distribution grid system, due to limited investment this
upgrading is yet to be fully deployed.
The low voltage distribution grids have structure of 1-phase 2-wire or 3-phase 4-wire, neutral phase is directly
grounded providing voltage of 220 (380) V. The total length of low voltage distribution grid lines by the end of
2008 was 218,424 km with many different types of cable such as underground cables (copper or aluminium),
shielded cable, twisted cable ABC, or bare bimetal cable. The low voltage distribution grid is owned by various
stakeholders, such as the power sector, private enterprises, etc. The result is uneven quality, non-compliance with
technical standards, and high losses.
According to reports of the electricity sector, power loss ratio has been significantly improved, down from 14.1% in
2001 to 9.23% in 2011.
According to the deep analysis of IE, the main reasons for the high loss ratios in Vietnamese grid are the followings
[2]:
■
Very long transmission grid along geographical topology of Vietnam.
■
Limited finances for upgrading transmission and distribution grid.
■
The percentage of hydro power plants is high whereas they are far from the central loads thus require long
transmission grid. This results in very high losses, especially during rainy seasons.
■
Instable voltage at some grid nodes.
■
The percentage of home loads is still high in comparison with industrial loads.
■
Limited management capacity leads to sale losses. The implementation of IT applications (such as CMIS) in
power sale is still in pilot phase.
■
Limited implementation of new technologies.
■
Lack of studies on standardization in the management of high-loss load.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
The status of information systems, automation and data communication in the Vietnamese power system:
Compared to the Smart Grid infrastructure reference model, ICT infrastructure layer, information, automation and
data communication system the Vietnamese power system is still in distributed form, not connected into a unified
system and lacks many important elements as follows:
Information systems in the power unit
According to the Circular No. 12/2010/TT - BCT dated 15/4/2010 [23] of the Ministry of Trade and Industry,
effective since 01/6/2010, power plants of more than 30 MW and power plants that are connected to the
transmission grid must be equipped with two physically independent DCS (distributed control system) ports, which
are directly connected to the SCADA / EMS system of the electricity operator’s system and to the electricity market
operator. However, only a few plants comply with this regulation. The remaining plants are not in compliance and
only equipped with different levels of system terminals for data gathering and communication ports to exchange
information (RTU / Gateway), for example:
■
In Vietnam power system with all 96 power plants in operation, the power plants equipped with
RTU/Gateways number 94 plants (71 plants with a capacity greater than or equal to 30 MW and 23 plants
with capacity less than 30 MW), at the rate of 98%.
■
In 94 power plants equipped with RTU/Gateways, those connected with SCADA / EMS with Load Dispatch
Center number 52 (including 50 power plants with a capacity greater than or equal to 30 MW and two with
a capacity of less than 30 MW), at the rate of 55%.
In recent years, a number of power plants have been equipped with distributed control systems (Distribution
Control System - DCS) in order to support the power generation units for operating power plant. However,
investments in this equipment are not always in compliance with the Circular No. 12/2010/TT-BCT dated
15/4/2010 of MOIT [23], so the equipment comes from a variety of providers, causing difficulty in control, manage
and replacement.
Information systems in the transmission grid
As instructed by the Circular No. 12/2010/TT-BCT dated 15/4/2010 of MOIT, [23] transformers of more than 220
kV must be equipped with two physically independent DCS (distributed control system) ports, which are directly
connected to the SCADA/EMS system of the electricity operator’s system and the electricity market operator.
Likewise, 110 kV transformers must be equipped with two physically independent DCS port or RTUs, which are
directly connected to the SCADA/EMS system of the electricity operator’s system and the electricity market
operator.
In fact, most of the current high-voltage transformers only have data collection and data transmission through
RTU/Gateway. Even at this level, the number of transformers at a voltage level of 500-220-110 kV connected with
the SCADA/EMS of the Centre is only 248/635 stations, at the rate of 39%. The details are the followings:
58
■
Of the total of 635 transformers at a voltage of 500-220-110 kV in operation, 341 have been equipped with
RTU/Gateways (including 17 transformers of 500 kV, 69 of 220 kV and 255 of 110 kV), at the rate of 54%.
■
Of those 341 transformers having RTU/Gateways, 248 stations have been connected to the SCADA/EMS of
the Center (including 17 transformers of 500 kV, 59 transformers of 220 kV and 172 transformers of 110
kV), at the rate of 73%; and of the 248 transformers connected to the SCADA/EMS of the Centre, only 170
stations have completed the connection process, at the rate of 69%.
■
The number of transformers not connected to the SCADA / EMS of the Center is 93 stations, accounting for
27% in the absence of information channels, channel loss in the long run, or due to the SCADA channel not
being set.
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Information systems in the distribution grid
Distribution grids are managed by power companies. Distribution grid structures at the local level are not
consistent, especially in the low and medium voltage grid. This is one of the difficulties in the operation as well as
investment in equipment and upgrading information systems, automation and data communication in a uniform
power distribution network.
For the dispatch grid at medium voltage level, currently only a few pilot projects are equipped with RTU/Gateways
and SCADA/DMS systems, for example:
■
Installation of pilot SCADA/DMS information systems for operation data measurement, collection and
management in major cities, high population areas such as Hanoi, Ho Chi Minh City, Ba Ria-Vung Tau,
Bien Hoa, Can Tho, Da Nang, Buon Ma Thuot, Hue, Quy Nhon, etc
■
Research automation of distributed grid (Distribution Automation System, DAS) in Hai Phong and radio
controlled load control system under load management program (Distribution Side Management, DSM) in
Hanoi and Ho Chi Minh City.
■
For current low-voltage electricity distribution networks:
■
Communication between power companies and consumers primarily through the power meter, which is
most likely the mechanical meter. Electronic meter is only provided for large customers. As of 31/12/2011
the total number of meter installation is 18,760,57 including 18,292,358 mechanical meters and 468,214
electronics meters.
■
Small-scale experiment with the system for remote recording of data from electronic meters for service
payment, customer management, energy trading and customer services. Specifically, since 2004, the power
sector has piloted and applied a number of technology solutions for reading power meter e.g. AMR
(Automatic Metering Reading) and semi-automated systems to read HHU (Hand-Held Unit) meter along
with Power Line Communication, RS-485 and HHU for data transmission. So far, power companies have
installed 57,904 AMR devices.
59
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
2. Relevant Energy Institutions
Figure 22: Vietnamese energy related organizations
1. Ministry of Industry and Trade (MOIT)
MOIT is the policy maker of the whole national power sector and stands above all other relevant energy institutions
as shown in the figure above. It is responsible for the advancement, promotion, governance, regulation and
management of industry and the growth of industry in Vietnam. It became a ministry on its own in 1955 and has its
origins in 1945 with the formation of the modern National Unification Cabinet.
Further information in regards to MOIT can be found under www.moit.gov.vn.
2. Electricity Regulatory Authority of Vietnam (ERAV) - Ministry of Industry and Trade
ERAV was established in October, 2005 as an entity under MOIT, to conduct:
■
Development and regulation of power markets
■
Economic regulation (electricity pricing)
■
Monitoring supply/demand balance to promote security, efficiency and conservation
■
Licensing and Dispute resolution
Further information in regards to ERAV can be found under www.erav.vn.
60
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
3. Vietnam Electricity (EVN)
The main business lines of Vietnam Electricity Group include:
■
Production, transmission, distribution and trading of electricity;
■
Administration of power production, transmission, distribution in the national electricity system; import
and export of electricity;
■
Investment management and investment power projects;
■
Management, operation, repair, maintenance, overhaul, renovation, upgrading electrical equipment, and
electrical experiments.
In the field of distribution, EVN owns 5 power companies, namely: Electricity North Vietnam (EVN NPC), Southern
Electricity Corporation (EVN SPC), Central Electricity Corporation (EVN CPC), Hanoi Power Corporation (EVN
HANOI), the Electricity Corporation of Ho Chi Minh City (EVN HCMC).
In the field of transmission, the National Power Transmission Corporation (NPT) was established on the basis of
the merging and reorganizing of four transmission companies (Transmission Company 1, 2, 3, 4) and 3 project
management boards of North, Central, South areas.
In general, EVN structure is a vertical integration of Generation, Transmission and Distribution.
Figure 23: The vertical-integrated structure of Vietnamese Energy Sector [17]
Further information in regards to EVN can be found under www.evn.com.vn.
4. Institute of Energy (IE), Ministry of Industry and Trade
IE is the main organization doing research and contributing to the national energy policy.
The main functionalities of IE are the followings:
1. Study on national energy strategies, policies and development plans
■ Formulation of energy development strategies and policies;
■ Preparation and amendment of legal documents for energy activities;
■ Preparation of National Energy Development Master Plan, and monitoring and assessment of Power
Development Master Plan implementation process, as Advisor to Ministry of Industry and Trade on
steering measures;
■ Preparation of National Power Development Master Plan;
■ Preparation of National Renewable Energy Development Master Plan;
■ Preparation of Energy Conservation and Energy Efficiency Master Plan;
61
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
■
■
■
■
■
■
■
Preparation of human resource development plan for energy sector;
Preparation of power development plans for territories, provinces, cities, industrial zones and
residential areas throughout the country and countries in the region;
Preparation of plan for grid-connection of power plants, power transmission lines, inter-connection
with power systems of neighboring countries;
Preparation of development plans for thermal power, hydropower and nuclear power;
Preparation of renewable energy development plans;
Preparation of national rural electrification master plan;
Development of energy data bank for MOIT; as the focal point in providing international and regional
organizations with energy data and techno-economic indicators; research on compiling procedures and
norms to serve energy sector development.
2. Consulting on formulation of national strategies and policies
Consulting on the formulation of national strategies and policies on energy and power development.
Further information in regards to IE can be found under www.ievn.com.vn.
5. Ministry of Planning and Investment (MPI)
The Ministry of Planning and Investment is an agency of the Government that performs the functions of State
management over planning and investment, including the provision of general advice on strategies, planning and
plans for national socioeconomic development, mechanism and policies for general economic management and for
some specific fields, domestic and foreign investment, industrial parks and export-processing zones, management
of official development assistance source, bidding, enterprises, and business registration throughout the country;
and it performs the State management over public services in the fields under its management as prescribed by law.
Further information in regards to the MPI can be found under www.mpi.gov.vn.
6. Ministry of Information and Communication (MIC)
The Ministry of Information and Communications of the Socialist Republic of Vietnam is the policy making and
regulatory body in the fields of press and publishing; posts; telecommunications and Internet; transmission; radio
frequency; information technology and electronics; broadcasting and national information infrastructure; and
management of related public services on behalf of the government.
Further information in regards to the MIC can be found under www.mic.gov.vn.
3. Relevant Energy Policies and Regulation
1. Development of the Vietnamese Electricity Market - Decision Number 26/2006/QD
This decision is the orientation for the development of electricity market toward competitive market, which was
approved by the Prime Minister on the 26th of January 2006.[26]
According to this decision, the Vietnamese electricity market will be formed and developed through three levels in
each period: level 1 (2005-2014): the competitive electricity market; level 2 (2015-2022): market competitive
wholesale electricity; level 3 (from 2022): the competitive electricity retail market, i.e. after 2022 electric customers
may decide to participate in electricity trading in the competitive retail electricity market. The Figure 20 on page 54
has shown the development plan.
62
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
2. Construction of Infrastructure Systems - Resolution No. 13-NQ/TW
During the 4th conference of the Central Party Committee on the construction of infrastructure systems, in order to
industrialize Vietnam by 2020, the above resolution pointed out the limitations and weaknesses, and the outdated,
inconsistent, and poor connectivity of Vietnamese infrastructure, which is currently the bottleneck of the
development of the national economy. It also orients the national resource to invest in four key focused areas:
■
Transport infrastructure,
■
Energy infrastructure,
■
Irrigation infrastructure,
■
Large urban infrastructure
Especially, the energy infrastructure should ensure adequate supply of electricity for production and daily life to
meet the requirements of industrialization and modernization of the country, along with the capability to reduce
power consumption and to increase energy efficiency and conservation. [28]
As for energy infrastructure, the resolution indicated the need for: "Research on application of Smart Grid and
modern technologies in order to improve the quality of electricity distribution networks. Connect Vietnamese
electric system to the power network of Southeast-Asia region. Promote energy efficiency, in order to reduce the
ratio of energy demand growth/GDP growth to 1.0 in 2020"
3. Resolution No. 16/NQ-CP 2012 on action plan to implement the Resolution 13-NQ/TW
This resolution, implemented during the 4th conference of the Central Party Committee on infrastructure
development, is the Government Action Program to implement the Resolution No. 13-NQ/TW in construction of
synchronous infrastructure to make Vietnam become an industrial country by 2020. It clearly states the objectives
and requirements of the program including major tasks for ministries. As for energy infrastructure, the
Government assigned the Ministry of Industry and Trade (MOIT) in 2012 in collaboration with the Ministry of
Planning and Investment (MPI), the Ministry of Information and Communications (MIC), Hanoi and Ho Chi Minh
Cities, the responsibility of proposing investment projects to develop ICT applications for the management,
exploitation and operation of Smart Grid systems in big cities, especially Hanoi and Ho Chi Minh City.[29]
4. Technology Development Strategy of EVN to 2015, with vision to 2025
This strategic document, released in December 2008 (with the consulting of the Institute of Energy) provides
analysis and assessment of the current state of EVN technologies in power production, an overview of the
development of the energy technologies in the world and in the Asian region. Based on these analyses, it proposed
the technology development strategy for EVN in the period up to 2015 and orientations to 2025 including roadmap
and implementation solutions. The strategy also clearly states the targets for the technology development roadmap
(including generation, transmission, distribution, business technologies and customer service) of EVN to 2015 with
orientation to 2025.
The key points in the implementation of this strategy of high relevance to Smart Grid are the followings:
63
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
In transmission technology
■
From 2009-2015, improvement of operational and maintenance quality of transmission system
■
■
■
■
■
■
Implement the backup standard of “n-1” for 110kV and 220kV and “n-2” for Hanoi and highly priority
areas
Implement HVDC and FACTS
Construction of the infrastructure for the competitive market in 2016, according to the approved
master plan of the Government
Focus on technology of hot maintenance for transmission system
Mastering technology for selective production of electrical equipments
From 2016- 2025
■
■
■
Improvement of transmission power along with increasing operational stability and reliability
Mastering technology for selective production of electrical equipments
Complete the new national grid control and operational by 2025, with full integration of SCADA/EMS,
AMI and infrastructure needed for the competitive electricity market.
In Distribution Technology
■
From 2009-2015
■
■
■
Start migrating the voltage of Medium voltage grid to 22kV nation-wide
Upgrade and modernize the distribution grid to improve the reliability of distribution
From 2016-2025
■
■
Complete the migration of medium voltage grids to 22kV
Upgrade and modernize the distribution grid
In power business and customer services
■
From 2009-2015
■
■
■
Upgrade the metering technology by implementation of solutions of HHU (Hand-held Unit), AMRPLC, Smart meter, wired RS-485 and RF
Deploy and upgrade the ICT infrastructure, exploit the (CMIS – Customer Management Information
System) to eliminate the manual electricity fee collection by 2015.
From 2016-2025
■
■
Complete the upgrade of integrated customer service center
Deploy the Smart metering by inheriting result of previous phase
Complete the preparation of technology and services for competitive power market by 2025, in order to start the
market in 2030. [31]
64
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
7. Smart Grid Activities in Vietnam
1. Smart Grid Policy / Activities by Governmental Institutions
1. Decision 1208/QD-TTg - Approving the National Electricity Development Master Plan
This decision is also known as the “Electricity Master Plan Number 7” and was implemented and approved by the
prime minister on the 22nd July 2011.[30] This decision presents the views, goals, orientation, and power
development plan of Vietnam for the period 2011-2020 including generation, power transmission and distribution,
power grid linking with other regional countries. It also gives solutions and indicates tasks of ministries, local and
relevant units as well as a list of power projects and power transmission network to be constructed and renovated.
In this decision the Prime Minister assigned MOIT to organize the development of a “Roadmap of Smart Grid
development in Vietnam” proposal for approval. (This document was released in 2012 by ERAV)
Concerning grid development, the decision stated:
■
Research on implementation of "Smart Grid" technology, to enable the interaction between households
using electricity with the power grid in order to reduce grid development costs and improve the stability of
the power grid.
■
Application of modern technologies to improve the quality of distribution grids, step-by-step put the power
grid into underground infrastructure in large cities to limit its influence on landscape and environment.
Utilizing modern technology in investment, operation and management to reduce power losses. These
activities are oriented towards building Smart Grid, Smart Communities in order to reduce power losses,
improve energy efficiency.
2. Circular No. 12/2010/TT-BCT - Structuring of the Electricity Distribution System
The circular was implemented on the 15th April 2010 by the Ministry of Industry and Trade and regulates the
following points:
1. The standards for the operation of electricity transmission system.
2. Investment in the transmission grid development.
3. Electricity load demand forecasting.
4. Conditions and procedures for connection to the transmission grid.
5. Regulation and operation of the electricity transmission system.
6. Measure power at delivery points between the transmission and distribution grid, power plants connected
to the transmission grid that are not involved in competitive electricity markets, and customers who receive
power directly from the transmission grid.
The Circular (in Vietnamese language) also provides detailed technical requirements, such as:
■
For information systems, customers of the transmission grid are responsible for installation of information
systems within their management reach and connecting it with the information systems of both the
transmission company and the market operator for the communication purposes of power system
operation and electricity markets. Customers’ devices must be compatible with the existing information
systems of both transmission company and market operator.
■
For SCADA/EMS, substations supporting voltages of 220 kV or more must be equipped with two physically
independent DCS (distributed control system) ports, which are directly connected to the SCADA/EMS
systems of the electricity operator’s system and the electricity market operator
65
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
■
110 kV substations must be equipped with two physically independent DCS ports or RTUs connected to the
SCADA/EMS of the electricity operator’s system and the electricity market operator
■
Power plants with an installed capacity of 30 MW or more and power plants connected to the transmission
grid must be equipped with two physically independent DCS ports, which are directly connected to the
SCADA/EMS system of the electricity operator’s system and the electricity market operator
These requirements are the important guidelines for the automation of transmission and distribution grids. [23]
3. Proposal on Roadmap of Smart Grid Development in Vietnam
This proposal (motivated by Decision 1208/QD-TTg) was developed by ERAV – MoIT and approved by the prime
minister in October 2012. This is the most important document related to Smart Grid development in Vietnam. The
document is in Vietnamese language. The most important information is translated here. It thoroughly analyzes the
need for Smart Grid development; gives some basic concepts about Smart Grid and Vietnamese perspective; a
Smart Grid reference model; international experience in developing Smart Grid; assesses the current status of the
national grid including information systems, automation and data communication system of Vietnamese power
system, and the current state of Smart Grid applications in Vietnam. Based on these in-depth analyses, the proposal
orients Vietnam's electricity sector for 2011-2020 and proposes short-term, medium-term and long-term goals for
the development of the Vietnamese Smart Grid, as well as the master plan for deploying Smart Grid in Vietnam.
According to the roadmap, the targets of Smart Grid development in Vietnam are the following:
General targets:
The implementation of Smart Grid in Vietnam is aimed at promoting energy conservation as well as encouraging
the development of clean energy technologies and supporting industries. The targets and the road map have been
split into three phases and the following tables indicate the targets as well as the necessary steps in order to achieve
these targets.
66
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Stage 1 (2012 – 2016)
Supply
Necessary Steps
Pilot: AMI pilot for large
consumer at HCM city
Demand
Deploy SCADA/DMS
systems for provincial
power companies
Evaluation of TOU
(Time of Usage) Smart
meter pilot
Grid
Policy making for
various fields in Smart
Grid
Smart Grid Training for
power companies
Evaluation of Demand
Response and Load
Research pilot program
Common Activities
Reduce power cuts due
to lack of power
resources
Building financial
mechanisms for Smart
Grid Deployment
Deploy Applications to
optimize grid operation
and minimize
transmission &
distribution losses
Targets
To limit and manage
blackouts
Technical
Standardization for
deployment of Smart
Grid
Complete the
SCADA/EMS project for
National Load Dispatch
Centre and Regional
Load Dispatch Centers
Pilot at EVN CPC of
Renewable source
integration (for > 5MW
RE sources)
Improve load balancing
for power companies
Complete the pilot
program on AMI at
some large customers in
HoChiMinhCity
Implement the
applications for optimal
operation of power
transmission and
distribution grid,
reducing power losses
Improve the capability
of load forecast and
power supply planning
Development of
technical infrastructure
in order to prepare for
the operation of the
future competitive
wholesale electricity
market
Inspect and review the
implementation of the
ICT infrastructure in
power plants,
substations of 110 kV or
more
Table 6: Road Map of Smart Grid Development in Vietnam: Stage 1
67
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Stage 2 (2017 – 2022)
Common Activities
Empowering customers
by giving them the
capability to manage
their own energy usage
Policy making for
Renewable Energy
encouraging, Zero
Energy House, Energy
exchange and sale
between prosumers and
power companies
Targets
Reduce power losses
Technical
standardization of
Electric transportation
and electricity storage
Necessary Steps
Pilot and evaluation of
other Smart Grid
technologies such as
Electric Transportation,
Electricity Storage
Demand
Completion of
SCADA/DMS
deployment for large
power companies and
corporations
Deploy AMI for
prosumers who join
retail power market
Grid
Pilot for competitive
wholesale power market
Expand Smart Grid
Training for power
companies and
deployment of Smart
Grid applications
Supply
Pilot for competitive
retail market
Extend the deployment
of DSM programs for
country side areas
Equip ICT infrastructure
for distribution grid
Pilot of integration of
Distributed Generation
and Renewable Source
into the grid through
medium voltage grid
Anti-power theft
Further improve the
operational efficiency of
power grids, focusing on
the distribution grid
Reduce the investment
for the construction of
new power plants
Development of
infrastructure to prepare
for the operation of
competitive electricity
retail markets
Step-by-step
development of
electrical transportation
systems
68
Promote the
development of
supporting industries for
the clean energy
industry
Table 7: Road Map of Smart Grid Development in Vietnam: Stage 2
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Necessary Steps
Deploy Electric
Transportation and
Electricity storage
Demand
Completion of
SCADA/DMS for all
provincial power
companies
Deploy Demand
Response program at
consumer level
Grid
Integration of
Distributed Generation
and Renewable Source
into the grid through
low voltage grid
Complete the
Improvement of ICT
infrastructure for
distribution grid
Supply
Policy making for
deployment of Smart
Grid applications on
current ICT
infrastructure
Deploy Dynamic Pricing
and Retail power market
Common Activities
Labor cost savings
Deployment of Smart
Grid applications
Targets
Development of clean
energy to reduce
environmental impact
Ensure energy security,
reduce the demand of
importing energy
Deploying advanced
metering system (AMI)
for the customers to
participate the
competitive electricity
retail market
Power users can buy or
sell and choose to buy
electricity from different
suppliers
* The Energy storage including several technologies such as hydro-based energy storage and electrical storage at substation to stabilize power
quality. The power storage technology for EV (such as G2V, V2G) is under pilot investigation.
Stage 3 (After 2022)
Table 8: Road Map of Smart Grid Development in Vietnam: Stage 3
69
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Figure 24: Strategy of Energy development to 2025 [24]
The tables and figures above show the general energy development plan for Vietnam until 2025. It can be seen that
the strategy aim at radical changes in the whole national power sector from generation, transmission, distribution,
customer services and market with the deployment and upgrade of new technologies in the national grid
infrastructure. EVN and its member companies all over Vietnam are the main workforce to implement the roadmap
under the regulation and orientation of ERAV-MOIT.
2. Current Smart Grid Activities/Projects in Vietnam
1. TOU meter program
By the end of 2011, the Electricity of Vietnam (EVN) is managing 18,760,572 meters on the grid, in which the
number of 1-phase meters is 18,117,369 units (including 17,785,825 mechanical meters and 331,544 electronic
meter) and 3-phase meter is 643,203 units (including 506,533 mechanical meter and 136,670 electronic meter). All
3-phase electronic meters (136,670 units) implement three prices (dynamic prices). This mechanism has certain
effectiveness on load shifting. Some local industrial load areas (Bac Ninh province, Lao Cai) have shifted high
consumption hours into off-peak hours to reduce peak load.
Technology Area
Hardware
System and Software
Advanced Metering Infrastructure
3-phase electronic meter
Meter data management system
(MDMS)
Table 9: Smart Grid opportunities under the TOU meter program
70
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
2. Research program load (Load Research)
This program is performed by EVN in cooperation with ERAV to be deployed in Hanoi Power Corporation and Ho
Chi Minh Power Corporation. The program was implemented in two years (2011 and 2012). In the program, 1100
Smart meters, transmission lines, a server and software were installed. EVN is the project administrator, which
manages the database and perform measurements and conducts load research.
Technology Area
Hardware
System and Software
Advanced Metering Infrastructure
Smart meters, transmission lines,
server
Meter data management system
(MDMS)
Table 10: Smart Grid opportunities under the research program
3. Project "10-Years Road Map for Smart Grid Distribution in Vietnam"
This 10-years road map by the Brattle Group (United States) was ordered by the EVN Northern power Company
(EVNNPC). The project focuses on Smart Grid applications in distribution grid and considers the implementation
of a demand side management program at Power Companies. Proposed project contains the following components:
■
Smart Metering
■
Customer Programs
■
Distribution Automation
The project has a plan to implement these components during 10 years in 2 phases:
■
Phase I: Investment decision, including requirement collection, pilot testing and economical evaluation.
Investment decisions can be made after 2 to 3 years from the project starting.
■
Phase II: Deployment, including policy development, technology implementation, monitoring and
evaluation of results. The complete implementation can take 5 to 7 years.
Technology Area
Hardware
System and Software
Advanced Metering Infrastructure
Smart meter, servers
Meter data management system
(MDMS)
Distribution Grid management
Automated re-closers, switches
and capacitors, remote controlled
distributed generation and storage,
transformer sensors, wire and cable
sensors
Customer-side systems
building automation systems,
Geographic information system
(GIS),
Distribution management system
(DMS),
Outage management system
(OMS),
workforce management system
(WMS)
Energy dashboards, energy
management
systems, energy applications for
smart
phones and tablets
Table 11: Smart Grid opportunities under the 10 years road map for Smart Grid distribution
71
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
4. Project SCADA/ EMS
This investment project by the Moderation Systems Center National Implementation is to equip the new
SCADA/EMS system for four new Operating Centers including: Center of the National Power System (A0) and
three centers in the North (A1), Middle (A2), South (A3) supported by a loan from the World Bank. Currently the
project is in the bidding process of equipment suppliers.
Technology Area
Hardware
System and Software
Distribution Grid management
Automated re-closers, switches
and capacitors, remote controlled
distributed generation and storage,
transformer sensors, wire and cable
sensors
Geographic information system
(GIS),
distribution management system
(DMS),
outage management system (OMS),
workforce management system
(WMS)
Table 12: Smart Grid opportunities under the SCADA/ EMS project
5. Project Installation of Electronic Meters
This project of the EVN Central power Cooperation (EVNCPC) is a DEP project of the World Bank to install
approximately 10,000 electronic meters with a total investment of approximately 100 billion Vietnamese Dong. The
project completion is expected to improve the quality of customer service, increase productivity, reduce power
losses, increase the operating efficiency of power production, and improve the business of EVN CPC. Project
implementation period is from 2012 to 2017.
Technology Area
Hardware
System and Software
Advanced Metering Infrastructure
Smart Meter
Meter data management system
(MDMS)
Table 13: Smart Grid opportunities under the EVNCPC installation project
6. Electric Vehicles in Tourism and Large Cities
As Vietnam has a very high number of motorbikes and an increasing number of cars, which cause traffic jams and
pollutions in large cities, there is a strong demand for electric vehicles (e.g. buses) in large cities.
At the moment there are several pilot projects in tourism cities: Cua Lo (Nghe An province), Sam Son (Thanh Hoa),
Hai Phong, Hanoi and HoChiMinhCity from both public and private sector companies, backed by local authorities.
Technology Area
Hardware
System and Software
EV Charging Infrastructure
Charging infrastructure,
batteries, inverters
Energy billing
Table 14: Smart Grid opportunities for electric vehicles
3. Future Pilot Programs and Projects
In order to implement the Smart Grid development plan, ERAV-MoIT proposes five main programs and two pilot
programs as follows:
72
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
1. Program 1: Improvement of Operational and Managerial Efficiency of the Power Grid
For the transmission grid:
■
Investment in remote system monitoring, data collection & processing (SCADA / EMS);
■
A capacity building project for the Electric Regulatory Centers, National Power Transmission Corporation
(NPT)
■
Deploy applications to improve transmission grid efficiency.
For electricity distribution networks:
■
Step-by-step development of infrastructure monitoring and control systems (SCADA/DMS);
■
Training and capacity building for the General Power Companies and Power Companies.
■
Develop “Performance standard indications” for the distribution grid to monitor operational efficiency
■
Upgrade the grid, narrow radius of power supply and perform the management measures to reduce energy
loss;
■
Research distribution grid structures capable of integrating distributed generation sources, including
renewable energy focus.
2. Program 2: Installation of AMI Infrastructure
■
Perform pilot projects to research and evaluate the effectiveness of modern ICT infrastructure (including
smart meter, communication lines, data acquisition, storage and process)
■
Step by step deployment for customers according to the approved financial mechanisms.
3. Program 3: Encouragement of Customers’ Participation in Energy Usage Management
■
Develop and issue the legal framework allowing Smart Grid applications to give permissions to customers.
■
Deploy the application for customer’s participation, based on load management; billing applications,
information provision for customers, power cut management, etc.
4. Program 4: Integration of Renewable Energy
■
Research and promulgate policies to encourage use of renewable energy at both centralized and distributed
levels.
5. Program 5: Green Transportation
■
Establish the mechanism for the development of electric vehicles and car charging stations.
■
In the short term (2012-2016), some pilot programs should be deployed early in order to evaluate their
effectiveness to serve as the basis for extension.
73
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
These two prioritized projects are:
1.
Installation of AMI Infrastructure:
Installation of smart meters for large customers in the General Power Corporation Ho Chi Minh City along
with transmission lines and server systems for data collection and data processing. Implementation of
selective applications on the AMI platform.
Purpose: To test ICT infrastructure and Smart Grid applications.
Organizers: ERAV and General Power Corporation of Ho Chi Minh City.
2. Integration of Renewable Energy:
Installation of ICT infrastructure between small hydro power plants (connected to the medium voltage
grid) connected to the SCADA/DMS of the Central Power Corporation (CPC); training and capacity
building for operational staff; study the effects of the operation of small hydropower plants to the operation
of CPC distribution grid.
Purpose: To ensure the integration of small hydropower plants in the CPC grid according to the following
criteria: (1) Steady-state and short-circuit control; (2) power quality; (3) voltage reactive power control; (4)
dependent services; (5) stability and DG's ability to withstand perturbations; (6) protection; (7) isolation
and isolation mode operation.
Organizers: ERAV and Central Power Company (CPC).
4. Conditions for Smart Grid Market Development in Vietnam
In the context of Vietnam, Smart Grid is a platform that includes:
74
■
The grid infrastructure including distributed generation, transmission, distribution, and customer grid that
contain smart elements (such as SCADA, automated substation control, etc.) to optimize and increase grid
stability, power quality, and reduce loss.
■
Distributed generation with renewable energy.
■
Advanced metering infrastructure for large customers.
■
A platform to encourage the culture of energy saving and conservation, and stimulate the integration and
development of Renewable Energy.
■
The benefits of Smart Grid in Vietnam are clear, and include the following:
■
By improving the transmission and distribution efficiency, in the long term Smart Grid will reduce the
pressure of constructing new power plans
■
Integrating RE, which in Vietnam has very high potential, thus reduce the need to import energy from
neighbour countries, thus improving energy security.
■
Integrating ICT infrastructure, which is the platform to deploy future applications and improve power
quality and stability.
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
The Demand of Smart Grid in Vietnam
Smart Grid is a new concept, which has been officially used worldwide since 2005. Promoting Smart Grid
applications will contribute to solving the challenge in the development of the national power sector in both present
and future, as follows:
■
The long-term Smart Grid will relax the pressure on the investment in the power sector by improving the
grid operational efficiency (by reducing power losses and increasing power savings). Customers are given
the right to make decision on their own energy consumption to increase energy efficiency and integration of
renewable sources (mainly from customer investment). Due to reduced demand and increased number of
power sources, thanks to Smart Grid, the demand for investment by enterprises in the electricity sector will
be reduced correspondingly.
■
Smart Grid aims to increase energy efficiency, while allowing integration of renewable distributed energy,
which in Vietnam has great potential so it will reduce the demand for imported electricity or other forms of
secondary energy, thus ensuring better energy security.
■
The integration of Smart Grid infrastructure with Information Technology & Telecommunications is the
platform for enhanced energy reliability, power management, and power quality improvement.
■
By the incentive mechanism and provision of more information to customers, they will have the right to
control their energy use, be involved in the process of energy production and consumption through
investment in distributed power sources. As a result, customers and society in general will better appreciate
the value of energy conservation and avoid waste of non-renewable energy sources. Therefore, the
reasonable adjustment of power prices will get more support from society.
■
Smart Grid is the critical infrastructure for the operation of the electricity market in Vietnam at all levels. It
is a platform to deploy applications to collect, process and manage information to ensure timeliness and
transparency in transactions and payment for electricity on the electricity market. In the competitive
electricity retail market, the Smart Grid also provides customers with information and opportunities to
participate actively in the process of production and sale of electricity. This development is consistent with
the orientation of the electricity market approved by the Prime Minister in the decision number
26/2006/QD - dated 26/01/2006.
■
With the integration of renewable energy sources such as small hydro, wind power, solar power, biomass
power, and geothermal power, Smart Grid contributes to reduce the rate of energy generated from fossil
fuel sources, thereby achieving the goal of environmental protection.
Currently, the investors in Vietnamese Smart Grid includes the Government, the World Bank, the Asian
Development Bank, and some others foreign banks that are investing in grid extension and upgrading, like German
KFW.
In the short and mid-term, the focused Smart Grid technologies are transmission automation and AMI for large
customers. Other technologies will have much smaller shares.
Due to the difficulty in financing Smart Grid projects, the country that offers financial support for such project will
gain great opportunity for its technology providers in Vietnamese market. In addition, for a successful Smart Grid
project, highly-qualified independent consulting companies are desired to closely work with local partners in
designing and implementing the project.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
No
1.
2.
Targets
Improve the operational efficiency
Reduce blackout due to lack of power source
Priority
High
High
3.
4.
5.
6.
7.
8.
Reduce investment
Management of power cut
Customers empower
Reduce labor cost
Reduce power loss
Develop infrastructure for
electricity market
High
High
Medium
Medium
Medium
Medium
9.
10.
Encourage clean energy industry
Improve energy security
Medium
Medium
11.
12.
13.
Integration of distribution generation
Reduce environmental impact
Anti-power theft
Low
Low
Low
competitive
Note
Becomes “High” if load demand is increase up to
10% in the coming years
Becomes “Medium” if electricity price increased
Table 15: The priority of the various targets of Smart Grid development in Vietnam [17]
Table 15 is taken from the Master Plan of Vietnamese Smart Grid Development in which the targets are sorted by
their priorities to Vietnamese demands. It can be seen that Target 1-4 are related to the Transmission and
Distribution Domains.
In addition to Table 15, the table given in Section 3.2 can be used to see the comparison between Vietnamese Smart
Grid definitions and IEA Smart Grid definition.
5. Main Results from the Interviews with relevant institutions in Vietnam about Smart
Grid development
The full notes of the interviews are attached in the Appendix D.
1. Governmental Institutions
According to ERAV and IE, “in the context of Vietnam, Smart Grid should be described as technologies for grid
automation and optimization for low loss. It includes distributed generation with renewable energy and advanced
metering infrastructure”. Among Smart Grid technologies, the focused technologies in Vietnam will be:
1) Automation of substations, SCADA/DMS system.
2) Smart metering for large customers.
3) Integration of renewable energy source into the national grid.
The introduction of Smart Grid in Vietnam will bring many benefits, from which the most significant are:
Economical:
76
■
Reduce the pressure on the investment for constructing new power plants
■
Encourage customers on saving energy
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Political:
■
Distributed generation and integration of RE will guarantee energy security and limit energy import.
Environmental:
■
Conserving fossil source and environment protection
Technical: Since Smart Grid integrates advanced ICT infrastructure, it is the platform to deploy applications to
enhance reliability, manage power cuts, and improve power quality.
However, at present, the deployment of Smart Grid in Vietnam will face various barriers such as:
■
Low public awareness.
■
The Vietnamese grid infrastructure is not well designed and invested, thus it has combined equipment from
many vendors, which are not fully compatible.
■
Acquiring a very large investment for Smart Grid is very challenging task to the government, it could have
broad effect on the whole society due to increase of electricity price.
In order to encourage Smart Grid deployment in Vietnam, the following activities need to be done: 1) Deeply study
and propose MoIT to issue the legal framework to support Smart Grid in VN.
■
Invest in SCADA for central and regional operating and control centers to optimize the grid and minimize
losses and blackout.
■
Deploy Smart meters to create a platform for new smart applications on the grid.
■
Integrate distributed generation and RE, and pilot green transportation.
Developed countries (US, JP, China, Korea, EU) are the main players in the Vietnamese market. Governmental
agencies, such as Japanese JICA, are pushing this market to promote their technology companies. For raising
public awareness, Smart Grid demonstrations in the following areas could be helpful:
2.
■
A pilot in upgrading obsolete substations to Smart Grid technology,
■
Energy efficiency, Smart Meters, Smart buildings,
■
Electric vehicles (EVs) in large and tourism cities.
Utilities and Related Companies
According to DPC (Danang Power Company) and PECC1 (Power Engineering Consulting Join Stock Company 1), at
this period, Smart Grid deployment should be focused in Substation Automation and Smart meters for large
customers, which will show intermediate benefits. The most serious barriers to Smart Grid in Vietnam are:
■
Large investment and
■
Lack of expertise and independent high quality consultant, who is not affected by foreign technological
providers, so that the chosen technologies will be future-proof and not to be overly obsolete.
■
No clear policies from EVN and MOIT.
Concerning Germany’s role in the Vietnamese Smart Grid market, case studies of German power companies who
successfully upgrade their systems to Smart Grid compliance would allow Vietnamese utilities to learn from
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
German case studies. Highly qualified German consulting companies are also desired for co-operating/contracting
in this field.
A big concern of utilities when upgrading to Smart Grid is that the new technology will be quickly obsolete and
therefore, careful selection of solutions must be done to avoid waste of investment.
For the awareness of Smart Grid in Vietnam, especially for utilities, a demonstration of upgrading a substation of
110/22kV transformer to Smart Grid compliance (fully interoperability with some IEC Smart Grid related standards
such as IEC 61850, IEC 61968, IEC 61970) would be helpful.
3. Technology Suppliers
According to ATS Ltd. (Applied Technical Systems Ltd. Web: http://www.ats.com.vn), the term Smart Grid in
developed countries is very different to Vietnam, which can be shortly defined as “A platform to improve the
efficiency and reduce loss in generation, transmission and distribution. Smart Grid also aims to create a culture of
energy saving and conservation, and stimulate the integration and development of RE”. It is worth mentioning that
the former director of ERAV, Mr. Tran Ahn Thai, is also the vice director of ATS Ltd.. The most important benefit of
Smart Grid to VN is the improvement of grid reliability, stabilities and the quality of power transmission and
distribution.
There are many barriers to the deployment of Smart Grid in VN, such as:
■
Lack of Standardizations of Vietnamese grid
■
There is no business model at the moment for Smart Grid in Vietnam
■
Weak market incentive and
■
Low awareness by the authority
To promote Smart Grid in VN, the legal framework must be of the highest priority. The roadmap must be
developed, then the design framework and pilots customized for Vietnam, which must be constructed mainly by
Vietnamese, because Vietnamese grid is far different from other countries, especially developed countries. From
ATS’s point of view, a Smart Grid demonstration project requires a comprehensive study of the project’s definition
and design. It can be selected from one of four domains: generation, transmission, distribution and operation
(among 7 domains of the IEA Smart Grid model, as shown in Figure 2).
6. Issues/barriers for Smart Grid Deployment in Vietnam
1. Technical
Vietnamese grid infrastructure is highly heterogeneous from a large number of vendors from many countries
(Germany, France, Sweden, USA, Russia, etc). Much of the equipment is obsolete, not fully compatible with each
other and not standardized. Therefore, it will require heavy investment on improving and modernizing generation,
transmission, distribution and even household systems.
■
Lack of standardization in operation, generation, transmission, and distribution.
■
Lack of Smart Grid expertise.
The public relation activities on Smart Grid are still limited in closed conferences and workshops without working
illustrative demonstrations to convince audiences.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
2. Financial
■
Funding a very large investment for Smart Grid over the next 20 years is a very challenging task for the
government.
■
Investing in Smart Grid will finally result in the increase of electricity price, which will have a broad effect
on the whole society. The current electricity price schemes are too low to provide market incentives for
Smart Grid.
■
The business model for Smart Grid in Vietnam is yet to be defined, while Smart Grid is a very expensive
technology and needs very strong market incentives.
3. Political
■
Low public awareness, especially among electric authorities, power companies and customers on the
benefits of Smart Grid.
■
The legal framework for Smart Grid deployment and Smart Grid applications is still under development.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
8. Basic Commercial Rollout Scenario
Clear definitions as well as clear policies need to be implemented for Smart Grid technologies in order to take the
fear of investing and/or supplying to the market away from foreign companies. They will need strong governmental
policies, which clearly show the short-, mid- and long-term possibilities. Even though PEA has defined a roadmap,
as described in Section 5.1.2, for several parts of the Smart Grid already, it will be essential to finalize EPPO’s
roadmap in order to implement an official policy. It is expected that EPPO’s roadmap will be finalized in June 2013.
In Vietnam the situation is similar to Thailand. In October 2012 the prime minister approved a proposal written by
ERAV on a roadmap of Smart Grid development in Vietnam. However, there are several policies existing, which will
affect Smart Grid as well. These related policies are further explained in Section 6.3.
Both countries are however a good way towards implementing Smart Grid related policies in the near future, which
will remove one barrier for foreign companies to invest. A very likely scenario is that bigger companies will take the
lead on first pilot projects, even without having an official policy, in order to be present in the market. Concrete
examples for possible opportunities and demonstration projects are given in Section 11. Small and Medium
Enterprises (SME) are hampered to do this step without having the policies in place and without seeing actual
demonstration projects. Hence, large companies may operate as a market opener for SME’s.
In Vietnam it can be estimated that the focus of Smart Grid technologies will be on automation in transmission and
AMI for large customers in the short and midterm. Further information on the current Smart Grid market in
Vietnam can be found in the respective Sections.
Possible European Market Scenarios as Example
Short-term investments need to be made within the next 5-10 years by transmission and distribution grid
operators. This includes an increasing penetration of renewable energy, distributed energy resources and new
loads, such as electric vehicles, are the greatest drivers for utilities to invest in smarter networks. However,
common standards and development partnerships are necessary to achieve true interoperability. The big unknown
is what role the new entrants could play in the future and whether energy companies have anything to fear from
them. Providing energy smart technologies, which create additional value in the energy sector whilst driving
towards environmental objectives, would create new opportunities for policy makers. Nevertheless, they will also
create new challenges for the regulators, whose decisions must meet the requirements of both private and public
interests. The policies and decisions made today will fundamentally shape tomorrow’s energy system. Hence, it is
important to remove regulatory barriers, since technology usually develops faster than regulations.
The following graph explores how smart energy investments could transform the business system of energy in
European markets. This general graph can however be adapted for Southeast-Asian countries as well, especially for
countries like Thailand and Vietnam, which have already made major steps in their development.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Figure 25: Key scenario characteristics [32]
The Leadership Forum on Energy Smart Technologies hosted by Bloomberg: New Energy Finance in 2011 found
that there are basically four possible scenarios for energy development, which are further explained below.
Scenario A: High Smart Grid Investment / Monolithic Industry
This scenario will leave most of the intelligence, decision-making and power with the major utility companies.
There will be little choice for consumers, aggregation or other businesses. Smart appliances and home control
would still see good market penetration in order to help the utilities to manage costs and energy system
optimization, but their full potential will not be used in this scenario.
Main investments would be in distribution automation and grid upgrades, to improve operational efficiency and
reliability. The control would stay with the utilities and there would be little or no room for distributed generation,
such as PV for example.
Currently this scenario is unlikely to happen, because the momentum of deregulation and liberalization would need
to slow down and perhaps even reverse. In addition, support for smart network investments would be needed over
the next ten years.
Scenario B: High Smart Grid Investment / Many New Entrants
In this scenario utilities would still make a significant investment in smart energy technologies, but the overall
market becomes fragmented with many new entrants offering products and services, which may compete with the
utilities. The way energy is consumed will change and consumers may become “prosumers”, which means that they
would not only consume but also generate (produce) energy.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Significant action from policy makers and regulators is needed to create this scenario, so that network utilities are
allowed to earn higher returns on investments made in smart energy networks. Also, the market structure needs to
be liberalized to allow new entrants to participate, particularly in distributed generation and demand-side
resources. Distributed generation such as rooftop solar would have hit grid-parity in the majority of areas.
Scenario C: Low Smart Grid Investment / Many New Entrants
In this scenario the energy supply and services market becomes fragmented, with a number of new entrants
offering products and services to customers and weakening the hold of the major incumbent suppliers. Only few
investments in smart grid technologies such as smart metering and distribution automation would be carried out by
the distribution utilities, due to a lack of specific policy and regulatory action on these technologies.
This could lead to more intense competition for the energy supply to consumers and possibly greater convergence
between energy and other consumer offerings. However, it could also result in a range of new services in the home,
such as smart appliances and energy management and aggregation, driven by the disruptive newcomers.
Scenario D: Low Smart Grid Investment / Monolithic Industry
In this scenario control of energy supply remains firmly in the hands of utilities who do not invest in smart
infrastructure. There would be only limited degree of smartness. Frequency-response appliances are prevalent since
they can operate within the parameters of classical infrastructure.
The economic situation would not favour either the expansion of non-traditional players into energy or venture
investment for new entrants. In the absence of outside competition, utilities would have little to gain from
experimenting with smart technologies. However, this scenario is unlikely to happen, because if there is an
opportunity to capture value using smart technologies and business models, then somebody eventually will, which
would cause a transition to scenarios A or C.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
9. Identified / Undeveloped Business Opportunities
in Smart Grid in Thailand
1. Identified application areas and sub-technologies for Smart Grid systems for short to
mid-term prospects
The energy service providers and related authorities, like EPPO, EGAT, PEA, MEA, PTT, have been convinced of
the necessity of Smart Grid application for the electricity grid system in Thailand. Most of them either have utilized
or plan to install Smart Grid related hardware and applications on their facilities. The addition of the Smart Grid
applications can be done as most of the utilities already have SCADA in their systems. SCADA enables
communication between the service providers and their customers and it allows a transfer of gathered data between
different authorities. Utilities will be able to improve their services by providing advice to their customers for more
efficient and more cost effective use of energy. Furthermore, the distribution management system can process realtime information of the grid conditions and promptly detects fault locations with the advanced sensors and meters.
The components described in the service providers’ plans can be summarized as followings.
1. Substation and distribution automation
The automated distribution management system can detect and identify disturbances and their location with
advanced sensors almost immediately, and improves repair time resulting in shorter outages. The system can
maintain balance of voltage, frequency, and reactive power. It includes the following elements:
■
Substation controller and transformer monitoring and diagnostics
■
Energy Management System (EMS) for some time. The system analyzes power flow and contingency for the
supply side
■
Fault detection, isolation, restoration (FDIR)
■
Integrated Volt/VAR management, including switched capacitors & voltage regulator
■
DMS/OMS software and interface to existing applications, control center digitalization, and enterprise
integration
2. Advanced metering infrastructure and communication
The advanced metering infrastructure (AMI), which includes two-way communication with smart meters, enables a
transfer of customers’ consumption information and remote control of customers’ appliances. The systems and
software are as follows:
■
Smart meter (Single phase and poly-phase),
■
Two-way communication,
■
Meter Data Management System and interfaces to other enterprise applications,
Supervisory Control and Data Acquisition (SCADA) and Wide Area Monitoring System (WAMS) may be added to
the points mentioned above, since they are indirectly related. SCADA usually describes systems for controlling
transmission and distribution and WAMS is normally based on Phasor Measurement Units (PMU).
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
3. Utility Enterprise Applications
Energy efficiency at end-users is also the key success to the smart applications. Demand Side Management with an
integration of energy storage can reduce peak demand and enhance energy efficiency and was mentioned under
utility enterprise application in a presentation of PEA. Smart household energy management will provide flexibility
for the customers to sell their excess power or from their vehicles back to the grid.
■
DSM application,
■
Building energy automation systems,
■
In-house displays,
■
EV charging (G2V) and discharging (V2G) systems
4. Micro-grid systems
Electricity end-users can be producers of electricity from renewable energy or other types of distributed generation.
Micro-grid systems will facilitate the integration of the very small power producers together and the connection to
the main grid with reliability and safety. Micro-grid systems will allow islanding when there is instability of the
main grid or adequate generation from the micro-grid members.
5. Electric vehicle charging stations
Many energy service providers are interested in EV charging stations, which will supplement or replace traditional
gas stations in the future. Existing gas stations, department store parking lots, and office building parking lots seem
to be the best targets for public EV charging installation. A few demonstration stations have been set up with
batteries, inverters, and charging equipment.
2. Identified concrete investment plans by PEA
There are plans for investment from utilities in the near future. PEA has announced its investment plan for Smart
Grid development of 10 billion Baht (250 million Euro) during 2012-2016, 40 billion Baht (1,000 million Euro)
during 2017-2021, and 65 billion Baht (1,625 million Euro) during 2022-2026. MEA does not make known its
investment plan, but clearly indicates that the acquisition of Smart Grid facilities and smart meters has been
ongoing. Although there have not been any announcements on budgets, EGAT has issued its plan for
communication improvement, while PTT has shown a strong interest in EV charging stations.
The roadmap prepared by PEA, the facilities planned for installation by MEA, and the interviews given by EGAT,
MEA, SPCG, and the research unit at KMITL has indicated the equipment and software which are included in the
future investment plan. PEA declares the scope and budget of the phase 1 as in the following details, which was
presented by Mr. Suwat Chiochanchai, Assistant Governor (Planning and System Development) at Renewable
Energy Asia 2012 conference on 6 June 2012 (www.renewableenergy-asia.com).
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
PEA Smart Grid Phase I
2013 - 2017
Smart Grid Development Project, Phase I
Project Area
Scope of Work
Smart Substation System Installation 20
Chiangmai Province
sets
Nakornrachasima
Province
Solar Energy Roof top 24 units
Phuket Province
Energy Storage 12 units
Pattaya
Charging Station 24 units
Budget
4,860 million Baht
(121.5 million Euro)
Table 16: PEA Smart Grid Phase I – Smart Grid Development
2014 - 2018
AMI Development Project, Phase I
Project Area
Scope of Work
26 municipalities in PEA
service area
Advanced Meter Infrastructure
Installation (1,000,000 sets)
Budget
5,350 million Baht
(133.75 million
Euro)
Table 17: PEA Smart Grid Phase I – AMI Development
2014 - 2018
Micro-Grid Development Project (Mae Hongson Province)
Project Area
Install Energy Storage 1 set
Mae Saraeng District
Mae Hongson Province
Budget
Install Micro-Grid Controller 1 set
330 million Baht
(8.25 million Euro)
Table 18: PEA Smart Grid Phase I – Micro – Grid Development (Mae Hongson Province)
2014 - 2018
Micro-Grid Development Project (Trad Province)
Project Area
Install Hydro Power Plant 1 set
Koh Kood
Install PV Plant 2 sets
Koh Maak
Trad Province
Install Energy Storage 2 sets
Budget
225 million Baht
(5.62 million Euro)
Table 19: PEA Smart Grid Phase I – Micro – Grid Development (Trad Province)
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
10. Identified / Undeveloped Business Opportunities
in Smart Grid in Vietnam
1. Identified application areas and sub-technologies for Smart Grid systems for short to
mid-term prospects
Guided by MoIT and ERAV, EVN and its member companies are actively deploy Smart Grid technologies following
Strategy of EVN and the “Roadmap of Smart Grid development in Vietnam” (which are mentioned on previous
sections in this report).
The focused application areas, as stated in the interview and the strategic documents are Substation Automation in
Transmission and Distribution, Advanced Metering, Integration of Renewable Energy and Electric Transportation
in near future (with the direct involvement of the Ministry of Transportation). The following list the application
areas (according to IEA definition):
1. Wide area monitoring and control
SCADA/EMS system are the prioritized targets for modernization of Vietnamese grid. This can be seen in the large
number of pilots throughout Vietnam, which can be considered as the first step towards Smart Grid in Vietnam.
2. Information and communication technology integration
As a preparation for the competitive market, Customer Information System (CIS) is also a focus in the Strategy of
EVN, which is strongly related to the ICT infrastructure of the power sector.
3. Renewable and distributed generation integration
As Vietnam has high potential of renewable including hydro, solar, wind and biomass, the development of new RE
power plant in both centralized and distributed form and the integration of these sources into either medium or low
voltage grid is very important for national energy security. Large pilot projects are being deployed in middle and
southern Vietnam, backed by the US, the EU and Japan.
4. Transmission enhancement
HVDC is planned in the EVN strategy as an alternative for current HVAC transmission lines.
5. Distribution grid management
GIS substations, Distributed Management System (DMS) and Outage management system (OMS) are being
deployed and/or piloted in distribution grid as a measure to improve the operational efficiency and power stability
and quality.
6. Advanced metering infrastructure
AMI projects have taken a large part of Smart Grid development activities in Vietnam. Due to the large investment
required, it is first applied for large customers such as industrial sites and commercial buildings.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
7. Electric vehicle charging infrastructure
As Vietnamese traffic and environment are being heavily affected by millions of motorbikes and cars, electric
transportation is planned in large cities and/or tourism cities, thus raising the demand for charging infrastructure.
However, due to its special nature, the electric transportation is currently under direct control of the Ministry of
Transportation.
2. General opportunities
According to the decision number 26/2006/QD - dated 26 Jan, 2006 on the development of the electricity market,
the Vietnamese electricity market will be formed and developed through three levels in each period: level 1 (20052014): the competitive electricity market; level 2 (2015-2022): market competitive wholesale electricity; level 3
(from 2022): the competitive electricity retail market, i.e. after 2022 electric customers may decide to participate in
electricity trading in the competitive retail electricity market.
In Decision No. 1208/QD-TTg dated 21/7/2011 of the Prime Minister approving the national electricity
development plan for 2011-2020 with vision to 2030 stated:
“The total investment to the power industry to 2020 is approximately 929,700 billion VND (equivalent to 48.8
billion USD),), average is 4.88 billion USD annually.
In the period of 2021-2030, the estimated total investment is 1,429,300 billion VND (75 billion USD). In the whole
period 2011-2030, the investment demand is 2,359,000 billion VND (123,8 billion USD) including:
Generation: 2011-2020: 619,300 billion VND (66.6% of total investment) and 2021-2030 is 935,300 billion
(65,5% of total investment)
Power Grid: 2011-2020: 210,400 billion VND (33.4% of total investment) and 2021-2030: 494,000 billion VND
(34.5% total investment)”
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Figure 26: The Cost-benefit analysis on new electrical technologies [24]
In the time frame to 2025, according to the EVN technological strategy, the cost-benefit relationship can be seen
from the Figure 26.
The business opportunities (BO) in Smart Grid market include:
■
BO1: Technology, equipment and solutions provision in: 1) Grid Automation; 2) Smart metering; 3)
Renewable energy; and 4) Electrical Transportation (in prioritized order).
■
BO2: Investment or co-financing in pilot projects, technological demonstration.
■
BO3: Consulting in design, implementation and operation of Smart Grid
■
BO4: Consulting to EVN and its member companies on setting up "systematic tenders" for upcoming
investments that allow more coherencies among sub-technologies in (smart) grid infrastructure, in order to
obtain future-proof scalable SG solution and avoid future system incompatibleness.
■
BO5: Consulting & knowledge exchange on the development and deployment of new energy technologies.
Most of the current projects involve all business opportunities from BO1 to BO5.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
As stated in the Roadmap of Smart Grid development of Vietnam, the expense for development of legal framework,
standardization, pilot of Smart Grid technologies are approximately 50 million USD for the period of 2013-2020,
which bring the following benefits:
Accountable benefits:
■
Reduce generation expense of peak generation cost to average 143 USD/MW (or 3000 VND/kWh)
■
Reduce the demand for the construction of new power plants, to n investment rate of 2 millions USD/MW
■
Benefit of reducing operational and maintenance cost: equal 10% investment for the period 10 years
■
Reduce power loss
Unaccountable benefits:
■
Increase system stability
■
Environment benefit due to reduce CO2 emission
■
New job creation
3. Concrete investment plans
Several concrete business opportunities are listed below.
1. 110kV/22kV Smart Distribution Substation (Da Nang City)
Duration:
2014-2016
Project Area:
Thuan Phuoc substation, Da Nang City
Owner:
Danang Power Company (DPC)
Scope of work:
■
New installation of a 110kV/22kV smart distribution substation included two transformers with total power
of 103MVA.
■
Totally integrated digital control infrastructure with smart gateway or substation controller conforming to
Smart Grid standards, e.g. IEC standards such as IEC 61850.
■
Communication with existing SCADA/DMS installed at control center via IEC 60870-104.
Budget: 65 Billion VND (2.4 million Euros)
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
2. Grid automation in Khanh Hoa Province
Khanh Hoa Power Joint Stock Company (KHPC JSC) is operating the grid of 110kV and below 110kV including (as
of 03/2012):
■
110 kV transformer station: 13 stations
■
110 kV line: 340.467 km
■
Intermediate station 15-22-35 kV: 6 stations
■
Public load stations and clients: 2928
■
Re-closer equipment: 51 sets
In the three phase upgrading project, the first phase was completed with the following results:
■
Online monitoring and administration of the system, sharing operational data with the user.
■
Combining remote control system of 110 kV substations and information collection system operated at 110
kV substations into a common system.
■
The data: P, Q, U, I, cos-(phi) ... at the meters on the 110kV, 35kV, 22kV, 110kV substations were collected,
processed and stored in the new ICT infrastructure.
■
Assists for the monitoring and management of power trading in the Company.
The Scope of Phase 2 of the project is the followings:
Complete remote control of 110kV stations (9 stations), additional SCADA/DMS for electricity distribution
networks, and metering management for commercial and industrial customers.
The project will provide full system monitoring and information management capability. General scope of the
project includes:
■
Center Hardware: Additional, redundant management computers and applications to ensure that no single
incident can disrupt the normal operation of the system.
■
Software Center: Additional software modules integrating services and applications on the basis of data
collected from the dispatch center, 110kV station, MV systems and meters.
■
Develop automated system control station (SAS) for the remaining 9 stations.
■
Develop systems to collect data from the meters of industrial and commercial customers. Expect around
1500 endpoints.
■
Develop data collection system connecting the Reclosers, medium-voltage terminals, RMU and deploy test
monitoring and control of some circuit-breakers. Estimated at about 200 endpoints.
The scope of Phase 3 including:
Additional SCADA/DMS for the distribution grid, and metering management for a wide range of consumer
activities. The project will provide full system monitoring and information management measures. General scope of
the project will include:
■
90
Center Hardware: Additional media management computer to be able to manage and collect data from the
meter of the consumer protection activities. Expect to add about 10,000 households each year.
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
■
Software center: supplement and upgrade the historical database to suit the amount of data growth when
connected to a wide range of consumer activities.
■
Implement system to connect to data collected from the public and client stations and Reclosers, for
medium-voltage substations, and RMUs, and deploy test monitoring controls for a number of circuitbreakers targeted to manage the entire high-voltage power grid. Expected around 2000 points.
Budgets:
■
Phase 2: 45 billion VND = 1,7 million Euros,
(5 billion VND per Substation)
■
Phase 3: 12 billion VND: 0,5 billions VND per 10,000 meters/ annually + 10 billion VND per 2000 3phase meters.
3. Project Installation of electronic meters of EVNCPC:
This is a DEP (Distribution Efficiency Project) project of the World Bank to install approximately 10,000 electronic
meters with a total investment of approximately 100 billion VND. The project when completed is expected to
improve the quality of customer service, increase productivity, reduce power losses, contribute to increased
operating power production efficiency, and improve the business of EVNCPC. Project implementation period is
from 2012 to 2017.
4. Integration of renewable energy in EVNCPC
This project aims to integrate small hydro power plants to the SCADA/DMS of EVNCPC to study the effect of
introducing RE on the operation of distribution grid of EVNCPC.
5. Micro-grid systems in remote islands
The demand for micro-grids is very high on islands (like Truong Sa, etc.) to both provide electricity for the island
population and for national security.
6. Electric vehicle charging stations
In large cities and tourism cities, where electric cars and buses for tourists are becoming popular, the demand for
EV charging stations is also increasing. (Such as: Hanoi, HoChiMinh, HaiPhong, CuaLo, etc).
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
11. Recommendations
1. Matrix for Smart Grid Opportunities in Thailand
Table 20: Smart Grid Opportunities in Thailand – Offering Institution: PEA (continuation on next page)
92
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
93
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Table 21: Smart Grid Opportunities in Thailand – Offering Institution: MEA
Table 22: Smart Grid Opportunities in Thailand – Offering Institution: EGAT
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
2. Matrix for Smart Grid Opportunities in Vietnam
Tender offering Institution: EVN - Vietnam
No
1
Technology area
Short technical description of SG
technology required
Realization
Timeframe
• Production, transmission, distribution and
trading of electricity;
• Administration of power production,
transmission, distribution in the national
electricity system; import and export of
electricity;
• Investment management and investment
power projects;
• Management, operation, repair,
maintenance, overhaul, renovation, upgrading
electrical equipment, electrical experiments.
N/A
Contact
address/web site
for more
information
Main contractor
for that SG
technology so
far (If available)
Current Project
Status (SG
stage, what
happened
earlier, etc.)
Remarks
www.evn.com.vn
Information
updated by
Date
Prof. Nguyen Chan
Hung (VIELINA)
05. Nov
Information
updated by
Date
Table 23: Smart Grid Opportunities in Vietnam – Offering Institution: EVN
Tender offering Institution: ERAV - Vietnam
No
1
Technology area
Short technical description of SG
technology required
Realization
Timeframe
• Development and regulation of power
markets
• Economic regulation (electricity pricing)
• Monitoring supply/demand balance to
promote security, efficiency and conservation
• Licensing and Dispute resolution
N/A
Contact
address/web site
for more
information
Main contractor
for that SG
technology so
far (If available)
Current Project
Status (SG
stage, what
happened
earlier, etc.)
Remarks
Prof. Nguyen Chan
Hung (VIELINA)
www.erav.vn.
05. Nov
Table 24: Smart Grid Opportunities in Vietnam – Offering Institution: ERAV
Tender offering Institution: EVNHCMC - Vietnam
No
Technology area
2
GRID
Short technical description of SG
technology required
Realization
Timeframe
Installation of Smart Meter for large Customer
2012-2016
at HCM city
Contact
address/web site
for more
information
Main contractor
for that SG
technology so
far (If available)
Current Project
Status (SG
stage, what
happened
earlier, etc.)
Remarks
www.hcmpc.com.vn
Information
updated by
Date
Dr. Nguyen Chan
Hung
11.09.12
Information
updated by
Date
Table 25: Smart Grid Opportunities in Vietnam – Offering Institution: EVNHCMC
Tender offering Institution: EVNCPC - Vietnam
No
Technology area
2
GRID
Short technical description of SG
technology required
Integration of Renewable Energy (of power
>= 5MW) into Medium voltage grid and
SCADA/DMS system of EVNCPC
Realization
Timeframe
2012-2016
Contact
address/web site
for more
information
Main contractor
for that SG
technology so
far (If available)
Current Project
Status (SG
stage, what
happened
earlier, etc.)
Remarks
http://www.cpc.vn
Table 26: Smart Grid Opportunities in Vietnam – Offering Institution: EVNCPC
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Tender offering Institution: KHPC - Vietnam
No
1
Technology area
Short technical description of SG
technology required
Complete remote control of 110kV stations
(09 stations), additional SCADA / DMS for
electricity distribution networks and metering
management to commercial and industrial
customers.
GRI D
Realization
Timeframe
2012- 2017
Contact address/web
site for more
information
Main contractor
for that SG
technology so
far (If available)
http://www.khpc.com.vn/
Current Project
Status (SG
stage, what
happened
earlier, etc.)
Start of Phase 2
Remarks
Lack of capital investment
Information
updated by
Prof. Nguyen Chan
Hung (VIELINA)
Date
05. Nov
Table 27: Smart Grid Opportunities in Vietnam – Offering Institution: KHPC
Tender offering Institution: DPC - Vietnam
No
Technology area
Short technical description of SG
technology required
Realization
Timeframe
Contact
Main contractor
address/web site
for that SG
for more
technology so
information
far (If available)
Current Project
Status (SG
stage, what
happened
earlier, etc.)
Remarks
Information
updated by
Date
• New installation of a 110kV/22kV smart
distribution substation included two
transformers with total power of 103MVA
1
GRID
• Totally integrated digital control
infrastructure with smart gateway or
substation controller fulfilled smart grid
standards, such as IEC 61850.
2014-2016
http://dnp.com.vn/ ABB
Pending
Lack of investment
Lack of expertise
Need consultant
Prof. Nguyen Chan
05. Nov
Hung (VIELINA)
2012-2017
http://dnp.com.vn/
Started
Lack of investment
Prof. Nguyen Chan
05. Nov
Hung (VIELINA)
• Communication with available SCADA/DMS
installed at control center via IEC 60870-104
2
DEMAND
10,000 meter installation
Table 28: Smart Grid Opportunities in Vietnam – Offering Institution: DPC
3. Recommendations for Concrete Opportunities
As smart grids have been planned and the budget allocation is in process, it is the opportunity to elaborate and
confirm the quality of the products to the clients’ expectations as follows.
1.
The quality of the products is to be verified, although products from German are well known of their
standards and reliability. Prior to a big lot order like smart meters, the clients would prefer to see for
themselves the performance of the products in operation for a period of time.
2. The new products will be installed and made to work with the existing equipment, for example voltage cutoff relays and frequency cut-off relays. The new products are expected to perform well without any
interference in the settings of the existing relays. A test period for the newly installed components to work
on the existing environment will be useful for the clients to be convinced.
3. Micro-grids generally consist of a number of electronic components aggregated as controllers for local
generation and demand in order to synchronize with the main grid. Micro-grids are intended to enhance
efficiency and reliability of the system. Proper design and engineering are required for specific sites. The
systems are rather new and require demonstration.
4. An introduction of new technology will be required and appreciated by the clients, which will also give
credit to the products. It is the opportunity for the suppliers to bring in the new and superior technology to
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
the clients. Not only the introduction of new technology but the flexibility for modification to cope with
future technology is also necessary for the system.
5. Prices are always a factor contributing to the clients’ decisions, and the prices of the products from
Germany are known to be potentially higher than those offered by their competitors. This can be explained
by the proven quality of the products through the demonstration plants.
1. Thailand Demonstration Project 1:
Smart meters with data transmission capability
Background : Smart meters are now in the focus of the electricity service providers, both MEA and PEA, and have a
large business potential in near future. The demonstration project can start with an installation of a number of
smart meters for customers of different sizes, large, medium, and small consumers, manufacturers, buildings and
households. The smart meters must have a data transmission capability back to the electricity utility companies,
which allows two-way communication, information storage, and remote monitoring capability. Remote control of
customers’ appliances can be an option. The system should include information feedback to the customers. A
display of electricity usage may be installed with the meter to provide continuous information for the user. The
display can be in forms of a list of historical usage, daily accumulation, comparison with previous month, or graphs.
An alternative of the feedback can be provided at a dedicated website, where the customers can access into and view
all their usage information. The installation of the smart meters encourages an effective demand side management,
enhances services to the customers, and encourages energy efficiency improvement.
Justification: It was stated during the interview that MEA is procuring 8,000 automatic meters, and planning for
23,000 units more next year. PEA plans to install 400,000 advanced meters for its customers in cities during 20132017 with a budget of 4,860 million THB.
Potential benefit of the demonstration project:
■
MEA, PEA and EGAT
There are sizable budgets from the main utility service providers for the replacement of the existing meters
with advanced meters. As customers, MEA, PEA and EGAT can have a chance to verify the qualities of
German products through the demonstration plant.
■
German suppliers
This is an opportunity for the meter suppliers in Germany to bring their products to the attention of the
main utilities and engage in future sales. Through the participation in the demonstration project, German
suppliers who have never involved in any business with Thai authorities can get acquainted with the local
procurement requirements and procedure. This will also help in the introduction of new comers to the
system.
Potential partners for the project: MEA, PEA, and EGAT
Objective:
■
The main objective is to make PEA and MEA as early as possible aware of the special advantages of German
smart meter suppliers and their products.
■
To connect suppliers and utilities, so they can develop good relationships and build a foundation for future
business;
■
To allow both suppliers and their customers (utilities) to exchange information and to adjust their technical
requirements;
■
To create a positive attitude towards the products featured in the demonstration project.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Activities:
■
To install a number of advanced meters (10-20 units) for the utilities’ customers and a central receiving
unit to retrieve information from the meters;
■
To test the units by allowing the utilities to have the access and control of the system for a period of time (36 months);
■
To compile and analyze the information together with the utilities (MEA, PEA, EGAT);
■
To analyze the performance of the system in comparison with the utilities’ requirements.
Impact:
■
Learn about the advantages of having smart meters and its benefit for grid management, demand
management, tariff impact and customer relation issues.
■
Goodwill and better understanding of the products to be demonstrated.
■
An initial acquaintance and long term relationship among German suppliers and local utility agents.
Next Steps:
1. Discuss smart meter topic with PEA, MEA and potential suppliers further
2. Maybe organize a study tour for local utility staff to German smart meter projects to see potential benefits
of an holistic approach of smart meter programs
3. Then discuss with PEA and MEA specifications of smart meters for demonstration project.
4. Install a number of smart meters for different groups of PEA or MEA customers with communication
means,
5. Monitor the performance and adjust specifications in accordance with PEA and MEA requirements.
2. Thailand Demonstration Project 2
Micro-grid with a management system
Background: There will be more and more distributed generators, both with rotating generators and renewable
energy with inverters, installed in parallel with the supply of electricity from the main grid. The additional
distributed generators are meant for peak reduction and islanding capability, including selling power back to the
grid. A micro-grid arrangement will help in balancing the supply from the main grid with power from embedded
distributed generators in the system to achieve the objective and principle of the design. In addition, an
unintentional islanding facility will disconnect the local grid from the main grid when there is an interruption in
electricity supply from the main grid, and will start its own generation to compensate the shortage. This can be
viewed as an enhancement of the reliability of the local system. A micro-grid capable of integrating the system and
including a management system for efficient operation are required to fulfil the purposes. A successful
demonstration of a micro-grid can create a great business opportunity for the future.
“As a suitable demonstration project we regard the installation of an island power solution involving
conventional generators, renewables and battery storage for stabilization. This is a solution addressing
specifically the issue of weak/overloaded grids and rarely electrified areas lacking of stable power supply. On the
one hand side implementation is straight forward and does not require the approval of too many authorities
typically required for any large infrastructure project. On the other side a precise calculation of the amortization
period is doable for this type of project encouraging potential investors to participate. Furthermore this would
basically be a Smart Grid project on a small scale showing a clear economic benefit. The demonstration of an
island power solution (micro grid) would involve conventional generators, renewables and battery storage for
stabilization. A perfect place for such an autonomous power supply would either be a geographic island with no
98
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
connection to the central transmission grid or a remote industry site currently powered by diesel generators and
facing high fuel costs. We could supply and implement the required diesel-offsetting solution turnkey from a
technical and execution perspective. But the involvement of a strong equity partner would be mandatory from
our point of view.” (Dr. Leif Wiebking, Chief Technology Officer of the Instrumentation, Electrical and Control
Business Unit at Siemens Energy)
Justification: There is a plan to install demonstration micro-grid systems for PEA’s customers in Mae Sareang
district, Mae Hongson, with a budget of 330 million THB, and in Koh Kood and Koh Maak, Trad, with a budget of
225 million THB. There will also be an expansion of the project after the success of the demonstration project,
which will require a large amount of hardware and more micro-grid systems.
Potential benefit of the demonstration plant:
■
MEA, PEA and EGAT
Due to the projects planned by PEA and the budget set forth, there is an opportunity for German suppliers
to offer their collaboration with PEA on demonstration micro-grid systems.
■
German suppliers
Future business can be developed if German suppliers can convince PEA of their products’ quality and
superior performance. Micro-grids are site specific which require careful study and proper design to suit
the site conditions and environments. It is a good chance for the German suppliers to provide suggestions
and recommendations for the design and specifications of the micro-grid components to the local
authorities, which will possibly be included in the future purchase orders.
Potential partners for the project: MEA, PEA, EGAT, and industrial parks with distributed generations (DG).
Objective:
■
The main objective is to make PEA aware about the specific comparative advantage of German suppliers in
micro grid system components and field experience. This should be done as early as possible as a number
micro grids will be implemented in the near future in Thailand anyway.
■
To create an opportunity for German suppliers to access PEA and other private power producers (SPP,
VSPP, and industrial parks);
■
To allow both suppliers and PEA an opportunity to collaborate in design of the micro-grid systems to the
needs of the customers;
■
To make known the availability of the hardware and software from Germany.
Activities:
■
To collaborate with PEA in the design, procurement, and installation of micro-grid systems for PEA’s
demonstration plants.
■
To investigate and analyze the performance of the micro-grid systems together with PEA.
■
To conclude and modify the final specifications of the micro-grid systems to be procured and installed in
the expansion projects.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Impact:
■
A better understanding of the system requirements and product availability through collaboration with
PEA in the demonstration.
■
A closer relationship among German suppliers, local utility agents and other private power producers (SPP,
VSPP, Industrial parks).
Next Steps:
1. Organize a workshop with PEA and German suppliers on the topic of micro grids to show comparative
advantage of German system concept and their experience.
2. Organize a study tour to show successful micro grid systems operated with German technology
3. Define scope and area of the demonstration project for micro-grid application with PEA and potential
German suppliers
4. Develop a PPP concept approach or an ESCO concept with potential German suppliers Later once the
micro-grid demonstration system is installed, assist in monitoring the performance and yield of the
demonstration project and disseminate the results.
3. Vietnam Demonstration Project 1
Smart metering for large customers and distribution grid management
Background: Smart metering is one of the main targets in the national roadmap of Smart Grid Deployment. Due to
the large investment requirement, the main focus in the first phase will be large customers. In this demonstration
project, a number of smart meters with TOU pricing can be installed for industrial customers (such as steel and
textile manufacturers) to demonstrate the benefit of AMI in distribution grid to improve energy efficiency and some
energy policies such as TOU. The smart meters must have a data transmission capability back to the utility, which
allows two-way communication, information storage, and remote monitoring capability. To provide direct feedback
to customers, a number of displays should also be provided to show real-time energy consumptions and historical
data/graphs of usage, daily accumulation, and comparisons with previous month. Distribution grid management
software should be installed on utility side to help operator to monitor the load. Automatic alerts to customers on
cut-down energy usage can be integrated to assist the load-shifting (at the moment, utility’s staff is using manual
phone calls for this purposes). Other benefits such as grid stabilization and outage management can also be
demonstrated. Thus this Demonstration is considered to be beneficial to both customers and utility.
Justification: There is a large plan of EVN Central power Cooperation (EVNCPC), which is financially supported by
World Bank to install approximately 10,000 electronic meters with a total investment of approximately 100 billion
Vietnamese Dong.
Potential benefit of the demonstration plant:
■
EVN, EVNCPC, DPC
The project completion is expected to improve the quality of customer service, increase productivity, reduce
power losses, increase the operating efficiency of power production, and improve the business of EVN CPC.
There is a sizable budget for upgrading current mechanical meter to electronics meters. As customers, EVN,
EVNCPC and DPC can have a chance to verify the qualities of German products through the demonstration
plant. In addition, at the moment, EVNCPC having some difficulties in accessing cheap loans to implement
this project and therefore, financial support from German banks will greatly support this project.
■
German companies:
The demonstration project is opening opportunities for German suppliers to participate in the World Bank
project to deploy electronic meters. In this project, German companies can play active roles in providing
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
equipment’s, technologies and especially consulting services, while German institutions / banks can
provide financial supports such as low interest loans (which are highly desired).
Potential partners for the project:
■
EVN, EVNCPC, DPC
■
German suppliers
■
Optional intermediation partners
Objective:
■
The main objective is to make EVNCPC and DPC as early as possible aware of the special advantages of
German smart meter suppliers and their products.
■
To connect suppliers and utilities, so they can develop good relationships and build a foundation for future
business;
■
To allow both suppliers and their customers (utilities) to exchange information and to adjust their technical
requirements;
■
To create a positive attitude towards the products featured in the demonstration project.
■
To connect German suppliers and utilities for exchanging information, adjusting their technical
requirements.
■
To demonstrate the capabilities of German technologies, German consulting.
■
To increase the awareness on Smart Grid/ Smart meter benefits to utility, customers, and authorities.
Activities:
■
To install a number of advanced meters (10-20 units) for the utilities’ customers and a central receiving
unit to retrieve information from the meters;
■
To test the units by allowing the utilities to have the access and control of the system for a period of time (36 months) or transfer the system to utility.
■
To compile and analyze the information together with the utilities (DPC);
■
To analyze the performance of the system in comparison with the utilities’ requirements.
Impact:
■
Goodwill and better understanding of the products to be demonstrated and an initial acquaintance and
long term relationship among German suppliers and local utility agents.
Next Steps:
1. Discuss smart meter topic with EVNCPC and DPC and potential suppliers further
2. Maybe organize a study tour for local utility staff to German smart meter projects to see potential benefits
of an holistic approach of smart meter programs
3. Then discuss with partners specifications of smart meters for demonstration project.
4. Install smart meters and then assist in monitoring
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
4. Vietnam Demonstration Project 2
Upgrading obsolete substation to Smart Grid compliance
Background: In the demonstration project an obsolete substation of 110/22KV can be equipped with SCADA/DMS
system with smart meter and wide-area monitoring systems (WAMS), wide-area adaptive protection, control and
automation (WAAPCA). This will not only improve the reliability of the grid but also allow new Smart Grid
applications running through the ICT infrastructure. KHPC JSC. is among few Join stock power companies. KHPC
is also being considered the most active in deploying modern grid technologies with a long-term plan to upgrade
the power grid of Khanh Hoa Province.
Justification: Upgrading current substation to Smart Grid compliance is the 1st priority target in the national
roadmap of Smart Grid deployment. In this project, there is a very strong demand of low interest loan. The
involvement of German institutions / banks providing financial supports such as low interest loan will be the key
success factor. As KHPC is a joint stock company, the tender procedure is very flexible and fast. While KHPC
complete the 1st phase of modernizing its provincial grid, the next phase 2 and phase 3 will worth 45 billion VND
(1,7 million Euros) and 12 billion VND (0,5 million Euros), respectively.
Potential benefit of the demonstration plant:
■
KHPC
As KHPC JSC is very active in R&D in Smart Grid deployment, they will obtain great benefits from German
expertise in this fields through this demonstration.
Through the project, not only a typical technological model of Vietnamese Smart Grid can be prototyped
but also a financial and business model based on Public Private Partnership (PPP) can be assessed. In this
project, the financial supports such as low interest loans are also highly desired.
■
German partners:
German companies/institution can play active roles in 1) consulting services and 2) providing equipment
and technologies; and 3) providing loans. As the Khanh Hoa model is currently considered among most
successful models of Vietnamese grid modernization, the demonstration can be easily expanded. It is a
good chance for the German suppliers to provide suggestions and recommendations for the design and
specifications of the KHPC’s Smart Grid components to the local authorities, which will possibly be
included in the future purchase orders.
Potential partners for the project:
■
KHPC JSC (Khanh Hoa Power Joint Stock Company)
■
German suppliers/Consultant
Objective:
102
■
The main objective is to make KHPC as early as possible aware of the special advantages of German
suppliers and their products.
■
To connect suppliers and utilities, so they can develop good relationships and build a foundation for future
business;
■
To create a positive attitude towards the products featured in the demonstration project.
■
To connect German suppliers and utilities for exchanging information, adjusting their technical
requirements.
MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
■
To demonstrate the capabilities of German technologies, German consulting in designing/providing
integrated solutions, which are highly scalable and customizable for Vietnamese grids and compliance with
popular Smart Grid standards.
■
To show the tangible benefits of deploying smart grid to utilities/operator/authority.
Activities:
■
To integrated digital control infrastructure with smart gateway or substation controller conforming to
Smart Grid standards, e.g. IEC standards such as IEC 61850 in an existing substation.
■
To communicate with existing SCADA/DMS installed at control center via IEC standards.
Impact:
■
Great experiences with Vietnamese power grid modernization through collaborations with KHPC, which
can be expanded for larger scale.
■
Great public awareness on the new model of Vietnamese Smart Grid.
Next Steps:
1. Contact KHPC through either German agencies or intermediation partners.
2. Requirement collection, site survey, etc.
3. Requirement analysis, Design and Planning
4. Discuss with German financial institute for low cost loan offers.
5. Discuss this topic with KHPC and potential suppliers
6. Organize a study tour for local utility staff to German Smart Grid projects to see potential benefits of an
holistic approach of German Smart Grid model
7. Then discuss with partners specifications of smart grid for demonstration project.
5. Vietnam Demonstration Project 3
Renewable and distributed generation integration
Background: The integration of distributed generation is among main targets of Vietnamese national roadmap of
Smart Grid. The fact that Vietnam has very high potential of renewable energy including small hydro plan, solar,
wind and biomass will contribute to the high demand for Smart Grid. This demo project aims to integrate small
hydro power plants (> 5MW) to the SCADA/DMS of EVNCPC to study the effect of integrating RE to the operation
of EVNCPC distribution grid.
Justification: This pilot activity is also planned in the National Road Map of Smart Grid Development in Vietnam,
Stage 1 (2012-2016), thus showing its importance to the EVN strategy.
Potential benefit of the demonstration plant:
■
EVNCPC, SPP, VSPP, Utilities
The successful integration of distributed RE into the grid will encourage RE development, thus strongly
motivate SG deployment in Vietnam.
Especially, through the PPP (private–public partnership) mechanism, RE can be linked with a new
business model of green development in Vietnam, where RE SPP and VSPP can play a more active role in
contributing green energy to the current grid.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
■
German partners
By successfully demonstrate the clear benefit of RE integration into current grid, not only the Smart Grid
business can be promoted but also new business opportunities for German RE vendors will be created. This
is a great advantage thank to the worldwide reputation of Germany as a forerunner in RE.
It is a good opportunities for the German suppliers to provide suggestions and recommendations for the
design and specifications of the Smart Grid components to EVNCPC, SPP, VSPP, and Utilities, which will
possibly be included in the future purchase orders.
Potential partners for the project:
■
EVN Central Power Company (EVNCPC)
■
Private SPP, VSPP
■
German suppliers/Consultant
Objective:
■
To demonstrate the capabilities of German technologies, German consulting in the field of renewable
energy integration
■
To connect German companies to local SPP, VSPP and utilities to open new business opportunities for
German Renewable Energy suppliers.
Activities:
■
To equip selected small hydro plan (< 5MW) with appropriate devices to integrate with utility distribution
grid and connect them to the SCADA/DMS system of utility.
■
To control and monitor the electricity produced by hydro plan, according to load conditions.
Impact:
■
Raising public awareness of tangible benefits of both Smart Grid and RE, in which Germany is very famous.
Initial acquaintance and long term relationship among German suppliers and local utility/ SPP / VSPP.
Next Steps:
1.
Contact EVN CPC through either German agencies or intermediation partners.
2. Requirement collection
3. Requirement analysis, Design and Planning
4. Discuss with German financial institute for low cost loan offers.
5. Organize a study tour for local utility staff to German Smart Grid projects to see potential benefits of an
holistic approach of German Smart Grid model
6. Then discuss with partners specifications of smart grid for demonstration project.
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
References
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
Appendix
Appendix A: Survey of Worldwide Smart Grid Initiatives and Demonstration Projects
In order to lay the groundwork for our analysis of Smart Grid definitions and initiatives, the Annex Power team
reviewed leading Smart Grid roadmaps, plans, and demonstration projects in all the major regions of the world. In
this Appendix we present a summary of our survey, arranged alphabetically by country or regional authority.
A-1.
Australia
Australia’s main Smart Grid efforts have been pursued under programs focusing on energy ‘
efficiency, integration of renewables (especially solar energy), system reliability, and environmental and
financial/market incentives. The national government programs have been increasingly moved under the
Department of Resources, Energy, and Tourism (RET); there is also significant Smart Grid activity under a Smart
Metering/AMI initiative in the State of Victoria (centered at Melbourne), and under a solar energy initiative
involving cities across the country.
While government has provided the lead, there are also many private entities – utilities, power system and
telecommunications equipment vendors, wireless carriers, silicon and software vendors, etc. – actively investing
and participating in Australian Smart Grid projects. The context is one of rapidly rising retail energy prices (40%
increase over the past 3 years), a strong drive towards retail deregulation, an emerging market for carbon trading,
and a clear framework and incentives for customer demand management and renewable generation.[33]
Major initiatives, goals, and technologies being demonstrated:
Solar Cities program – an initiative involving cities throughout Australia, to test sustainable configurations
of solar generation, smart meters, energy efficiency, and cost-reflective pricing. Goals include peak energy
demand reduction; the development of improved cost/benefit analysis of energy options; and lower
environmental impact (greenhouse gas emissions).
Smart Grid, Smart City program – based in Newcastle, NSW, and led by Energy Australia, the goals are to
provide customers with real-time information and analysis about household energy use, including details
on individual appliances; and to test the use of sophisticated real-time information about grid performance
to enable transmission and distribution companies to participate in improved network control. This
demonstration project features the first use of 4G wide-area wireless technology, based on the Long Term
Evolution (LTE) standard, as an integrative Smart Grid communications network.
Victoria Smart Meter Project – this is an initiative to replace all (2.5 million) revenue meters of residential
and business customers with Smart Meters under Advanced Metering Infrastructure. It is an excellent case
study of scepticism by customers about whether this exemplary Smart Grid technology can deliver value-for
money, resulting in a government audit and revision of business parameters (e.g. customer opt-in to
flexible pricing, rather than mandated; subsidizing in-home displays; emphasis on the value of remote
connect/disconnect; change to some regulations governing utility cost recovery).
EnergyAustralia PowerSmart Program – Smart Meters to support Time-of-use (TOU) pricing for small
and medium commercial customers.
Advanced Electricity Storage Technologies Program – an initiative to develop and demonstrate innovative
electrical energy storage technologies that promise improved storage efficiency, and would enable more
widespread integration of variable-output renewable sources (wind and solar).
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Most recently, the Australian government recommended deregulation as a national policy, which would entail
mandating Smart Meters for all. This is based on the experience in the state of Victoria, as well as considerations of
fairness (one study found that the heaviest energy users may benefit from implicit subsidies for peak usage of up to
$330 per year).[38]
Resources:
http://www.ret.gov.au/energy/energy_programs/smartgrid/Pages/default.aspx
http://www.smartgridaustralia.com.au/
http://www.smartgridsmartcity.com.au/
http://www.dpi.vic.gov.au/smart-meters
http://www.dpi.vic.gov.au/smart-meters/about-smart-meters/government-review
A-2.
Canada
Smart Grid developments in Canada, like those in the U.S. and Australia, were initially driven by sub-national (state
or provincial) government initiatives. Ontario took the lead in 2006 by mandating the installation of smart meters
for all customers by 2010; this has resulted in one of the world’s largest and most advanced Smart Grids, featuring
more than a million smart meters in operation, and a framework for the integration of renewable generation and
other Smart Grid applications. More than 350,000 Ontario customers were o TOU service by mid-2011, and the
majority (millions) of customers are now being transitioned to TOU.
Other provinces are following suit – full rollouts are happening in British Columbia and Québec, while Alberta,
Manitoba, and Saskatchewan are running smart meter pilot programs.
The federal government is supporting the next wave of Smart Grid RD&D, with funding via the National Science
and Engineering Research Council of Canada (NSERC) and the Clean Energy Fund. Notable among the initiatives:
The NSERC Smart Micro grid Network – hosted at the British Columbia Institute of Technology and
involving researchers from multiple government and university research labs, and focusing on smart micro
grid operation, controls, and protection; planning, optimization and regulatory issues; and ICT for micro
grids. The larger goals include energy security and reducing the carbon footprint of energy generation.
City of Windsor, Ontario – integration of the city water and waste water systems to the Smart Grid, for the
purposes of developing process flexibility for demand management.
Wind and Storage Demonstrations – utility-scale storage pilot using new and re-purposed lithium ion
automotive batteries in Ontario and Manitoba; combined wind and storage demonstration in the Cowessess
First Nation, Saskatchewan; and a combined energy storage and demand response project to relieve peak
loading of substations in British Columbia.
Electricity Load Control Demonstration – being managed by the New Brunswick Power Corporation, this
will integrate smart grid technologies, customer loads, and renewable generation in four maritime
communities in New Brunswick, Nova Scotia, and Prince Edward Island. The project will involve real-time
demand management in as many as 750 buildings.
Wind Technology R&D Park – based in Prince Edward Island, a 9-MW wind facility will enable research
into the combination of wind and storage, and additional smart grid applications.
Sources:
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http://sgcanada.org/ - Canada’s Smart Grid central information clearinghouse, repository, and activities portal.
http://www.nrcan.gc.ca/media-room/news-release/01a/2010-01/1416 - description of funding for nineteen
projects covering smart grid, renewable, and clean energy technologies.
http://www.nsercpartnerships.ca/How-Comment/Networks-Reseaux/NSMGNet-NSMGNet-eng.asp - description
of the NSERC Smart Micro grid Network.
http://www.smart-micro grid.ca/ - home site for the NSERC Smart Micro grid Network.
A-3.
China
Since a decision by the central government in 2010 to invest heavily in the expansion and improvement of the
electrical grid, China has surpassed all other nations in funding for the innovation and integration of Smart Grid
technologies. More than 100 projects are planned or under way, touching on every area of Smart Grid technology
and organized under seven main programs:
Rationalization of power grids, including extensive standards development
“Strong” regional power grids and their constituent T&D networks
Power grid resilience in emergencies, power safety and reliability
Development of Demand Side Management
Improvements to energy conservation and energy utilization efficiency
Policy encouraging renewable energy generation and integration
Renovation of rural energy grids
The entity driving much of the activity in Smart Grid innovation, demonstrations, and deployment is the State Grid
Corporation of China. SGCC has published a multiphase, ten-year plan from 2010-2020 with pilot projects early in
that period and demonstration projects taking place (in parallel with some deployment projects) from 2011-2015.
This is a very aggressive approach; however, as an example of how agile the Chinese planning process can be, in
spite of its scope and momentum, the National Energy Administration (NEA), which has responsibility for directing
all energy related programs, concerning the 12th Five-Year period (2011-2015) seems to have subtly shifted
emphasis from a dominant focus on the “strong” aspect of a grid built on an Ultra High Voltage (UHV)
transmission backbone, to put more attention on the development of “smart” grid technologies supporting the
integration of renewable and distributed energy sources into the grid. These technologies include wind and solar
generation at utility scale, but also micro grids, household-level power generation, new types of energy storage
devices (at large, medium, and small scale), and the information and communications technologies and standards
needed to manage such a complex and variegated system.[39]
Since China is the largest and most vital market for Smart Grid technologies, the direction set by the NEA, the
SGCC, and others in the Chinese Smart Grid nexus is closely followed by all the leading multinational equipment
suppliers. (Similarly to others, the China government has created a hybrid government-industrial entity called the
China Electricity Council, under whose direction the SGCC and other entities conduct Smart Grid R&D projects.)
This strategic factor gives Chinese Smart Grid priorities a potentially strong influence on the technologies that are
selected for development and demonstration; since they may affect the choices available to grid planners in every
country worldwide, they are worth watching closely.
However, for reasons of space and scope we must limit ourselves to a mere sketch of Chinese Smart Grid
demonstration projects. The map below (Figure A 0 1) indicates their location and number; here is a summary of
some key projects and programs:
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Smart Community Demonstration Project – built by North China Power Grid under SGCC’s guidelines on
smart communities, this project connects 655 homes and 11 buildings in an interactive service platform
managing the low-voltage network. Power usage information is collected and used to manage smart
households, electric vehicle charging, distributed generation and storage, and automated electricity
distribution. The infrastructure features a fiber optic network integrated with the low-voltage plant, and
AMI meters for three services (electricity gas, and water).
Smart Grid, Demand Side Management Pilot – a pilot and feasibility study for DSM in commercial
buildings. This project is being developed and implemented by US giant Honeywell, and features
automated demand response with measurement and validation via sub-meters.
National Wind Power Integration Research and Test Center of China – focused on the integration of
renewable energy (30 wind turbines with 78 MW capacity and 640 kW of PV generation) and clean energy
storage (based on vanadium redox batteries). This will be the largest such facility in the world.
Power System Digital Real-Time Simulation Device – a large-scale platform that can simulate a power
system with up to 1,000 generators and 10,000 bus bars. It is designed to enable research on the
integration of large-scale equipment, enhanced power system analysis, and the testing of parameters for the
safe and stable operation and control of large hybrid AC/DC transmission systems.
Transmission Pilot Projects – the Jindongnan Nanyang-Jingmen Ultra High Voltage (UHV) AC Pilot
Project: a single 1,100-kV line with 6,000 MVA capacity over 640 km; and the Xiangjiaba-Shanghai +/800-kV UHV long distance, high capacity DC Transmission Pilot Project.
Figure A 0 1: Smart Grid Projects in China (indicative)
Finally, the NEA has proposed that along with technical and policy efforts, the Chinese Smart Grid plan should
include the establishment of a database of potential pilot projects and criteria for selecting a number of pilots (the
proposal is 21) for execution. This is similar to the Smart Grid program effectiveness metrics and selection criteria
that the US and EU governments are also each putting in place. Cross-country comparison of these metrics could
provide deeper insight into worldwide market developments and their potential for application in Southeast Asian
power systems and national contexts.
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Sources:
http://www.sgcc.com.cn/ywlm/kcxfz/sd-e/default.shtml
http://english.cec.org.cn/index.html
http://en.ndrc.gov.cn/mfod/t20081218_252224.htm
http://smartgrid.ieee.org/resources/public-policy/china
http://smartgrid.ieee.org/october-2012/684-china-s-smart-grid-program-one-goal-two-main-lines-three-stagesand-more
A-4.
European Union
European nations were among the first to deploy Automated Meter Reading (AMR) systems; renewable energy
generation, in the form of large-scale wind turbine farms and small-scale residential roof-top photovoltaic arrays;
Plug-in Electric Vehicle charging infrastructure; and other key Smart Grid technologies. At the system level,
European balancing authorities and distribution network operators are among the first to develop and deploy data
modeling standards for inter-system coordination and enterprise application integration.
In order to coordinate Smart Grid research and demonstration projects, disseminate lessons learned, and develop
metrics and measures of success, a number of European institutions have launched Smart Grid efforts. One
especially interesting project is developing metrics for determining the value (cost vs. benefit) of Smart Grid
technologies and applications, which can be generally applied.
Sources:
http://www.smartgrids.eu/ - “The European Technology Platform for Electricity Networks of the Future, also called
SmartGrids ETP, is the key European forum for the crystallisation of policy and technology research and
development pathways for the smart grids sector, as well as the linking glue between EU-level related initiatives.”
This includes links to information on all the major European initiatives, including policy, roadmaps, and technology
R&D and demonstration projects.
http://ses.jrc.ec.europa.eu/ses/node/43 - A “Smart Grid catalogue” produced by the European Commission (EC)
Joint Research Centre (JRC), Institute for Energy and Transport (IET). “The main goal of our study is to collect a
wide inventory of Smart Grid projects in Europe and use project data to support analysis of trends and
developments.”
This is a comprehensive, independent, survey-based inventory and assessment of European Smart Grid projects,
including deployments and R&D and demonstration projects. It is a clearly motivated study whose methodology is
well and fully explained. More than 300 entities responded to the survey, of which 219 met the criteria for inclusion
in the analysis. Around 30 especially well-documented projects “shortlisted in such a way as to ensure a fair
representation of different project sizes, categories, development stages and geographical areas” are examined in
detail. Project metrics are clearly defined and reported; the aim is to develop quantitative cost/benefit analysis that
might be useful in creating policy. This effort is coordinated with efforts in the USA (Smart Grid Clearinghouse at
the Virginia Polytechnic Institute and State University [“Virginia Tech”], and the U.S. Department of Energy) to
facilitate international sharing and comparison of data, insights, assessment methodologies, etc.
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A-5.
Germany
Germany is far advanced in the deployment of renewable energy technologies, which today account for more than
20% of electricity generation; the targets for 2030 and 2050 are 35% and 80%, respectively. Since these are
fluctuating sources, irrespective of demand, and introduce bi-directional energy flows, Smart Grid infrastructure –
especially communications network infrastructure, supporting sensor-based monitoring, management and control
systems – is needed to support the transition. There is a particular focus in Germany on developing the distribution
systems to accommodate and manage the high penetration of distributed renewables and more active market
participation by “prosumer” customers, while maintaining the superior quality, reliability, and efficiency of
Germany’s electricity supply. This set of issues is the subject of a survey-driven analysis of technology relevance and
readiness performed by the German Association of Energy and Water Industries (BDEW) and the German Electric
and Electronic Manufacturers’ Association (ZVEI), cited below.
Alongside this focus on distribution systems, there is substantial activity in Germany on the demonstration and
evaluation of virtually all Smart Grid technologies, including energy storage (especially to balance the intermittency
of renewables), energy efficiency, smart meters, integration of plug-in electric vehicles, and smart home energy
usage. See the report on six carefully-chosen projects from the joint Ministries initiative below.
Highlights of some of these projects being driven by utilities and technology suppliers:
Stadtwerk Hassfurt Smart Meter Project – a Smart Meter using Echelon’s NES AMI and power line carrier
(PLC) technology is being installed in each home (10,000 units when completed).
MIRABEL Project – a project of SAP, based in Dresden and designed to enable the distribution network
operator to balance available supply of renewable sources with demand. Households publish demand
schedules and the system aggregates these and schedules regional schedules for production and
consumption of energy. Theoretical gains in efficiency could be in the range of 8-9%.
SmartHouse/SmartGrid Project – another SAP project, based in Karlsruhe, similar to the MIRABEL
Project bus involving ICT-enables homes and aiming to meet higher levels of efficiency according to the EU
“20% [reduction of carbon] by 2020” objective.
Model City Mannheim Project – a project of MVV Energie based in Mannheim and Dresden. The goal is to
integrate as many as 1,300 users into a cellular micro grids pilot. Broadband over powerline (BPL)
communications will be used to connect dozens of generation units, small de-centralized and larger
centralized sources, and use variable pricing signals to enhance supply across the system of micro grids.
Multiple energy storage initiatives – German initiatives in energy storage go back at least to 1978, when a
large-scale compressed air storage facility (can discharge 290 MW over two hours) was installed at
Hunsdorf to meet peak demand requirements. From 1987 to 1995 the world’s largest lead-acid batterybased storage system – 7,000 cells with a capacity of 14 MWh) was in operation in Berlin (the Berliner
Kraft und Licht system). These projects were the models for replications in the US and other locations,
including Puerto Rico. The current focus is on large-scale lithium ion battery storage systems. These
include the German government-funded Evonik Industries AG project for a 1-MW/700-kWh Lithium Ion
Prototype Battery in the Völklingen power plant in Saarland, with plans to develop a 10 MW system; and
work at the Fraunhofer Institute on large-scale (up to 20 MWh) redox battery storage.
Even with these national and corporate initiatives; an agreement between Germany, Austria, and Switzerland to
collaborate on Smart Grid R&D; and participation in EU projects, Germany has not made strong moves from
concepts and pilots to large-scale deployments, especially of Smart Meters. This is due in part to a certain
scepticism regarding the value that AMI will return to customers and DNOs, compared to the considerable cost of
this investment – a problem which continues to be studied.
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Sources:
http://www.e-energy.de/en/index.php – English-language site of the E-Energy initiative, an interministerial
partnership between the Ministry of Economics and Technology (BMWi) and the Federal Ministry for the
Environment, Nature Conservation and Nuclear Safety (BMU).
http://www.e-energy.de/documents/E-Energy_Interim_results_Feb_2012.pdf – A summary of progress to date and
interim results of six “lighthouse” projects, involving significant Smart Grid demonstrations in six model regions
throughout Germany.
http://www.zvei.org/Verband/Publikationen/Seiten/Smart-Grids-in-Germany---Fields-of-action-for-distributionsystem-operators-on-the-way-to-Smart-Grids.aspx – BDEW/ZWEI, Berlin and Frankfurt-am-Main: June 2012.
Identifies 25 Smart Grid technical components from the areas of electrical networks, buildings, energy generation
and storage, and ICT, and analyzes their market promise and readiness. Fifteen components are considered
promising, while eight components – sensor systems; controllable local network transformers and converters for
managing reactive power; standardized communications, data infrastructures, and network controllers;
controllable photovoltaic plants and wind generators; and heat pumps and micro- and mini-CHP plants – appear to
be particularly promising.
A-6.
India
India is rapidly coming up to speed on Smart Grid planning, R&D, demonstrations and pilots. In a country with the
world’s fourth largest power system (by capacity), more than 400 million people are without electricity service, and
most who have service experience grid outages of several hours every day. There are very high T&D losses –
typically 30% and 50% in some states – and theft of service is very high. Because of poor power quality and
reliability, many customers have diesel generators, inverters, and battery storage but these are not well integrated
into the distribution grid. There is massive room for improvement, and the Ministry of Power and other
governmental agencies (including, significantly, the Prime Minister’s office) are taking strong initiatives to bring
national and academic labs, industry, utilities, and regional state and local government agencies together under a
set of entities to drive Smart Grid RD&D.
The National Smart Grid Mission is “Quality Power on Demand for All by 2027”, and it is articulated in four highlevel objectives: Smart Customer, Smart Utilities, Smart Transmission and Distribution, and Smart Policies. These
are being pursued over three consecutive five-year plans, and the efforts are being coordinated primarily by two
organizations:
The India Smart Grid Forum (ISGF) is a public-private partnership directed by the Ministry of Power, with
the mission of accelerating the development and deployment of Smart Grid technologies in the India power
sector. ISGF members include government agencies, utilities, technology and service providers, regulators,
research academic and other stakeholders. There were more than 75 member entities in mid-2011, with
many pending requests.
The India Smart Grid Task Force (ISGTF) is an inter-ministerial government task force chaired by an
Advisor to the Prime Minister of India. The ISGTF has five Working Groups, including the WG for Pilots on
New Technologies. The ISGTF has proposed the pursuit of eight Smart Grid pilots in different distribution
utilities, in eight functional areas:
1.
Residential AMI
2.
Industrial AMI
3.
Outage Management
4.
Peak Load Management
5.
Power Quality Management
6.
Micro grids
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MARKET POTENTIAL FOR SMART GRID TECHNOLOGY IN THAILAND AND VIETNAM
7.
8.
Distributed Generation
Projects combining some of the above areas
These pilot projects would be partially funded by the government, and partly by utilities and perhaps technology
partners.
Sources:
http://173.201.177.176/isgf/- home site of the India Smart Grid Forum (public-private partnership)
http://173.201.177.176/isgf/Download_files/Roadmap.pdf - a comprehensive, recent guide to India’s Smart Grid
mission, goals, roadmap, organization of RD&D, participants, projects, etc.
http://www.apdrp.gov.in/- home site of the Restructured Accelerated Power Development and Reform Program
(Ministry of Power)
http://rggvy.gov.in/rggvy/rggvyportal/index.html - Rajiv Gandhi Grameen Vidyutikaran Yojana - Scheme for Rural
Electricity Infrastructure and Household Electrification
A-7.
Japan
Until the tsunami and nuclear plant melt-down at Fukushima Daiici in late March 2011, the Japanese grid seemed
extremely strong, reliable, and efficient – there was apparently no need or justification for Smart Grid technologies.
In the aftermath of this calamitous disaster, Japan now faces the eventuality of complete nuclear de-provisioning
and there is now strong interest in the widespread integration of renewable energy, massive uptake of electric
vehicles, and other applications requiring Smart Grid infrastructure.
Japan is therefore in transition from seeing Smart Grid as primarily an opportunity for its ICT suppliers to export
components and solutions to other nations (especially the US and European countries, including the UK), to adding
a strong domestic focus. For example TEPCO, the largest utility in Japan, at the national government’s instigation
announced its intention to begin a large-scale Smart Meter rollout in its territory beginning Autumn, 2013. This
extremely aggressive schedule can be pursued thanks to Japanese government initiative and industrial learning
through participation in both domestic and overseas demonstration projects, the former including projects in
Kansai Science City, Kashiwa Smart City / University of Tokyo, Kitakyushu City, Yokohama City, and Toyota City;
the latter for example in Singapore and the USA (Hawai’i, New Mexico).
As a technological powerhouse, Japan is involved in every area of Smart Grid RD&D. The NEDO list of Energy and
Environmental Technologies projects includes many including Photovoltaic and Solar Thermal; Energy Efficiency;
Electrical Energy Storage including battery technologies; Solar and Biomass heat generation; Next-Generation
Building Energy Management; and others. There are also strong initiatives by Japanese companies in the
standardization and development of Smart Grid ICT including mesh networks for AMI; fiber optics transport for
utility networks; and Green Network/System Technologies (Green IT) for data centers.
It seems the major organizing principles for Japanese Smart Grid initiatives will be in the areas of Smart Cities,
Smart Home, and electric transportation (vehicles and infrastructure).
Finally it is worth noting an innovative attempt by Japanese researchers to develop and promote the “Internet of
Energy”, a thorough-going digital grid: not just the use of digital ICT to manage the traditional, centralized
production and delivery of energy, but the devolution of the grid into small and medium-sized, unsynchronized AC
cells connected by “Digital Grid Routers” via multi-leg AC/DC/AC conversion based on power semiconductor
(IGBT) technology. This would re-architect the electrical grid on the basis of “energy routing” similar to the way
that packet-based routing is the foundational technology of the modern communications infrastructure.
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Sources:
http://www.nedo.go.jp/english/activities_nedoprojects_energy.html
http://www.jetro.org/japan_turns_to_smart_grids_cities_and_homes_to_raise_energy_efficiency_and_boost_r
enewables
http://www.smartgridnews.com/artman/publish/Technologies_Metering/Japan-jumps-on-the-smart-gridbandwagon-Tepco-to-roll-out-millions-of-smart-meters-4543.html#.UKA2P8WHJ8E
http://gigaom.com/cleantech/japan-u-s-smart-grid-project-now-live-in-new-mexico/
http://www.digitalgrid.org/
A-8.
South Korea
Korea has propitious conditions for a successful transition to a “Green Growth, Low Carbon” society (the national
vision pronounced by the President in August, 2008). These include a single, unified utility serving the entire
nation (KEPCO); very mature, capable and agile ICT industries; and the national vision and will to become a
worldwide leader in Smart Grid technologies and solutions. The Korean Smart Grid Institute (KSGI) was launched
in August, 2009 “to manage comprehensively the government’s Smart Grid roadmap; operate a Smart Grid testbed, pilot city; and extend other policy support for Smart Grid related issues.”
The KSGI has established a clear Smart Grid Roadmap for Korea, which is organized in five sectors:
1. Smart Power Grid – focus on open (standards-based) interconnections between sources and consumption;
includes flexible control that enables high quality of supply, robust recovery from faults, etc.
2. Smart Consumer – focus on consumer reactions to real-time information, and smart home appliances that
respond to variable electric utility rates (pricing).
3. Smart Transportation – focus on a national charging infrastructure and vehicle-to-grid capabilities,
enabling management of peak consumption, efficient (lowest-cost) charging, and ancillary services.
4. Smart Renewables – focus on a micro grid infrastructure to support the deployment and integration of
small-scale renewable sources, potentially in every end-user premise, to promote self-sufficiency for
houses, buildings, and villages/towns/cities.
5. Smart Electricity Service – focus on the development of ICT infrastructure enabling consumer choice of the
most efficient, energy-saving and cost-effective energy plans, as well as a real-time trading system for
transactions of electricity and derivatives.
The KSGI is bringing demonstration projects in each of these areas together in a single national test-bed on Jeju
Island, which when completed will be the world’s largest Smart Grid community piloting new R&D results,
technologies, and business models. Approximately ten consortia of university, government, and international
industrial members are managing projects across the five sectors in the Jeju Island test-bed.
Finally, even before the KSGI was formed the Korean government launched the Power IT National Program, a set of
ten projects that were meant to bring innovation and higher added value to electric power service. These ten
projects cover a wide range of utility sector ICT requirements, technologies, and applications including
enhancement of the national bulk power EMS; development of a digital technology-based Next-Generation
Substation System; development of Ubiquitous PLC Technology; and development of Power Semiconductor and
Micro grid technologies supporting distributed generation. The ten Power IT projects were merged into the KSGI
framework and operations in 2009 and will continue until completion.
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Sources:
http://www.smartgrid.or.kr/eng.htm – a very comprehensive, clear presentation of the South Korean Smart Grid
roadmap, goals, test-bed, demonstration projects, timelines, etc.
http://www.smartgrid.or.kr/10eng5-4.php– interactive E-Brochure on the Ten IT Projects
http://www.smartgrid.or.kr/Ebook/10POWER_IT_PROJECTS.PDF – printable version of the same brochure.
A-9.
United States
The Smart Grid became a national priority in the United States in 2008, building on major Smart Metering
initiatives in two of the largest states (California and Texas) and playing a central role in the federal government
plans for recovery from the economic crisis. Some 100 Smart Grid projects were funded under the American
Recovery and Reinvestment Act, including many that were designed for near-term impacts. These projects are all
documented on a site dedicated to accounting for their goals, details, results and value to US taxpayers. The site
includes rich capabilities, enabling search by location (interactive map interface); program type (Investment Grant
or Demonstration Project); technology category; deployment status; name; entity; states that benefitted; etc.
Another very strong area of Smart Grid activity in the U.S. is the development of standards that should help drive
the kind of rational market segmentation and economies of scale for the electrical sector that have been so
beneficial in the ICT industries. The National Institute is Standards and Technology (NIST) launched and directs
the Smart Grid Interoperability Panel (SGIP), a public-private partnership devoted to identifying existing standards
that can be used directly or enhanced to meet Smart Grid requirements; and identifying areas (so-called “gaps”)
where new standards are needed and encouraging their development by established Standards Defining and Setting
Organizations (SDOs, SSOs) for the relevant industries.
Sources:
http://www.smartgrid.gov/recovery_act/project_information
https://www.sgiclearinghouse.org/ProjectMap
http://collaborate.nist.gov/twiki-sggrid/bin/view/SmartGrid/WebHome
http://www.nist.gov/smartgrid/research-reports-presentations.cfm
http://www.eia.gov/analysis/studies/electricity/pdf/sg_case_studies.pdf
http://www.eia.gov/tools/faqs/faq.cfm?id=108&t=3 – “How many smart meters are installed in the U.S. and who
has them?” – includes totals by utility type and customer type; also provides access to a database of detailed
information, including deployments by state.
A-10. Equipment Suppliers
Some links to major Smart Grid vendor sites:
ABB Smart Grid Definition, Technologies, and Projects
http://www.abb.com/cawp/db0003db002698/e41499e00a67ceebc12579ba002e1a92.aspx
http://www.abb.com/cawp/db0003db002698/baba580b0b249d96c12579ba002e75ae.aspx
http://www.abb.com/cawp/db0003db002698/8d75921be43ab6e8c12579ba002f59f5.aspx
http://www.gedigitalenergy.com/smartgrid_overview.htm
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IBM Smart Grid Examples and Smarter Energy Research Institute:
http://www.ibm.com/smarterplanet/us/en/smart_grid/examples/index.html
http://www-03.ibm.com/press/us/en/pressrelease/39108.wss
http://ibmresearchnews.blogspot.com/2012/10/institute-models-utility-of-future.html
KEMA studies, labs and projects
http://smartgridsherpa.com/case-studies
http://www.kema.com/services/testing/hmv-components/labs/smart-grid-interop.aspx
http://www.kema.com/news/articles/2012/smart-grid-demonstration.aspx
Siemens initiatives:
http://w3.usa.siemens.com/smartgrid/us/en/pages/smart-grid.aspx
http://www.siemens.com/innovation/en/news/2012/e_inno_1215.htm
A-11. International, Trans- and Non-governmental entities
Some links to global and professional association sites, e.g. the IEEE, etc.
Sources:
http://en.wikipedia.org/wiki/Smart_grid
http://smartgrid.ieee.org – Institute of Electrical and Electronics Engineers
http://smartgrid.ieee.org/ieee-smart-grid/smart-grid-conceptual-model – describes the seven top-level domains of
modern electrical systems and entry points into the IEEE’s rich offerings of detailed information in each domain
(see next link).
http://sgpubs.ieee.org/publications/interactive-search-tool – a front page for accessing all communications – from
research articles, to conference proceedings, news items,
http://www.iea-isgan.org/ – IEA International Smart Grid Action Network
http://www.globalsmartgridfederation.org/index.html – Global Smart Grid Federation
http://www.globalsmartgridfederation.org/documents/May31GSGF_report_digital_single.pdf
http://www.cleanenergyministerial.org/our_work/smart_grid/ – International Smart Grid Action Network
(ISGAN)
http://www.worldenergy.org/documents/20121006_smart_grids_best_practice_fundamentals_for_a_modern_e
nergy_system.pdf – World Energy Council
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Appendix B: Thailand’s electricity tariff scheme
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