challenges in implementing smart grid technologies in … · challenges in implementing smart grid...

KA Folly

Associate Professor

University of Cape Town

South Africa

Challenges in Implementing

Smart Grid Technologies in Africa

Presentation Outline

Introduction

Global Energy Use

Drivers towards Smart Grid

Challenges in Implementing Smart Grid in Africa

The South African Case

Conclusions

Introduction

The basic structure of the electric power grid has

remained unchanged for more than hundred

years.

Existing power generation infrastructure is not

able to keep pace with growing power demand.

The methods of power delivery to consumers

are also outdated and extremely inefficient.

Global power industry is facing challenges.

Introduction (cont.)

The electric grid in its current state is falling behind

the 21st century technological advancements and

energy demands.

Current trends in energy supply and use are

unsustainable-economically, environmentally and

socially.

According to the International Energy Agency,

overall energy use will at least double by 2030.

Most of the expansion will be powered by growth

in fossil fuels.

Introduction (cont.)

On the other hand, climate change scientists

now tell us that we will need to reduce emissions

of CO2 and other greenhouse gases by at least

60% by 2050, if we are to meet our emissions

reduction target.

We can decide to do something about climate

change by expanding massively the contribution

of renewable energy to our overall energy needs

or continue with “the business as usual” model.

Global Energy Use

About 84% of the world

primary energy is fossil

fuels.

A substantial proportion

of coal and gas

production is used to

generate electricity

(about 40%), a

percentage that is

gradually increasing Source: EIA Annual Energy Outlook 2012 and EIA Electric

Power Monthly (Feb 2012 Edition)

World primary energy-2010

Global Energy Use (cont.)

About 90% of the RSA

primary energy is fossil

fuels.

Coal is the most

polluting energy source

on the planet. RSA is

using 210% more coal

than the rest of the

world. More than 90% of

the SA electricity is

generated from coal. Source: Department of Energy of the Republic of South Africa:

“South African Energy Synopsis 2010”

RSA primary energy supply 2006

Global Energy Use (cont.)

• China has consolidated its position as the world’s largest energy consumer. By 2035, China will consume nearly 70% more energy than the United States (the second largest consumer).

In 2010, about 1.3 billion people (1/4 of the world

population) did not have access to electricity. In 11

countries all in Africa, more than 90% of people go

without electricity.

Until now, most Africans have no access to modern

fuels like natural gas, kerosene or propane. They

still rely on traditional use of biomass for cooking.

Why Smart Grid?

Since the rolling

blackout in 2008, the

price of electricity in SA

has been increasing

steadily every year to

fund the building of new

power stations.

Low reserve margins

Ten million people

without electricity in

RSA

What is Smart Grid ?

There is a growing consensus in the power

industry and among many governments that

smart grid technology is the answer to the

uncertainties and challenges that we are

currently facing.

The name “Smart grid” is controversial, but most

researchers agree on the attributes of smart grid


Smart grid is characterized by the following:

- Self-healing from power system disturbances

- Enables active participation by consumers in

demand response

- Operates resiliently against both physical and

cyber attacks

- Accommodates all generation and energy

storage technologies

- Optimizes asset utilization and efficiency


- Digital upgrade of distribution and transmission

grids

- Optimise current operations and to open up

new markets for alternative energy production

- The use of robust two-way communications,

advanced sensors and distributed computing

technology

- Improve the efficiency, reliability and safety of

power delivery and use

-


AMI

Power Quality and Planning

Renewable Integration

SMART GRID

Demand Response

Distribution Automation

Outage

Management

Field Data Applications

PHEV

Management

Smart Grid Implementation

in USA and Europe

In 2009, Smart Grid grew into a full-fledged

national commitment. President Barack Obama

featured it prominently in his roll-out of the $787

billion stimulus package, including $4.4 billion

earmarked for Smart Grid seed money.

The Smart Grids Task Force (SGTF) was set up

by the European Commission (EC) at the end of

2009. The SGTF reached a consensus over the

on policy and regulatory directions for the

deployment of Smart Grids.


in Africa Africa has an abundance of natural resources. The

entire continent can be regarded as one giant solar

panel. South Africa for instance, has very good solar

and wind resources.

The deployment of renewable energy technologies has

been slow to take off. About 92% of Africa’s

hydropower potential is still underdeveloped.

With the abundant renewable energy resources in the

African continent, Africa as whole can improve access

to electricity services by adapting smart grid

technologies to meet the electricity demand of the

future.


in Africa

Most African countries do not have any policy for

smart grid.

South Africa is still at an early stage of implementing

part of Smart Grid Smart. In 2008, Eskom approved

a rollout of smart meters, combined with time of Use

tariff to 120,000 customers. Phase 1- 10,000 meters

pilot project was completed in November 2010.

Phase 2- 110,000 rollout is expected to finish in

2012.

Distribution Automation (3 sites completed)

IRP 2010 a Positive Step

IRP 2010 is a document that has been promulgated

by the Department of Energy (DoE) which is expected

to form the basis of South Africa’s power generation

programme for the next 20 years.

According to the IRP 2010, 42 % of all new generation

will be expected to come from renewable energy over

the next 20 years.

Can this be achieved without large scale integration of

renewable? Also, our present transmission

infrastructure will not be able to cope with this increase


Smart Grid in Africa

Ageing and outdated Infrastructure: Present

Infrastructure in all African countries is inadequate and

requires major overhaul and augmentation to support

the growth of Smart Grids.

Inadequate resources: There is a need for new

technologies in the electricity supply system and new

infrastructure for transmission and distribution.

Lack of integrated communication platform


Smart Grid in Africa (cont.)

Cost of deployment: Distribution systems make up the

bulk of smart grid costs. It is estimated that the cost of

upgrading the US grid could range from $338 to 476

billion.

Management of the vast amount of data generated by

a wide range of stakeholders such as the power

utilities, vendors, municipalities, IPP, and consumers

will be challenging.

Transition from legacy systems: Old legacy systems

cannot always be retrofitted with new technologies and

there may be a need for an entire technology

solutions.



Smart consumers: “ The customer is ultimately the

stakeholder that the entire grid was created to

support”.

- consumer’s embrace of the two-way communication

- Implement dynamic pricing that can be incentives

for consumers to change their energy-use patterns.

Compatibility of older equipment: Some older

equipment must be replaced as it cannot be retrofitted

to be compatible with smart grid technologies. Early

retirement of equipment may become an issue.



Smart Grid Cybersecurity: is another challenge area

for smart grid implementation. Use of the internet to

link data flow between utilities and customers creates

a need to address cyber security. “Remote access to

control systems poses a huge danger”

Lack of standard and interoperability: The shift to common standard will take years of additional development, testing and negotiation.

The quest for Smart Grid standards to facilitate

interoperability is the most complicated issue facing

the Smart Grid industry.



Make more energy available at affordable prices to

enable all people to use modern energy to meet their

basic needs.

To slow overall growth of energy consumption through

conservation and energy efficiency improvement and

to make energy sources more environmentally

sustainable.

Changes in Regulatory Policies: Many regulatory policies are now outmoded to deal with consequences of Smart Grid.

Lack of human skills: who have they “know how” to deal with highly sophisticated equipment.

The Way Forwards

Energy efficiency and conservation policies should be

put in place.

If the grid were just 5% more efficient, the energy

savings would equate to permanently eliminating the

fuel and greenhouse gas emissions from 53 million

cars.

Diversification of energy sources should be a priority

of the government

Facilitate access to modern energy for all households

Conclusions

The Smart Grid will come from the application of

intelligent energy technology to optimize the use

of generation resources and the delivery of

power

There are several key challenges that should be

addressed before smart grid implementation

could be a reality in Africa.

Conclusions

Government must

(1) Promote broad deployment of energy

efficiency

(2) Deploy various types of renewable energy

(3) Deal effectively with carbon capture and

storage

(4) Put the right policy in place

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