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Finnish Smart Grids Smart meter roll outs almost complete, what’s coming next? Jan Segerstam, Development Director, Empower IM Oy 14.5.2013

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Page 1: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Finnish Smart Grids Smart meter roll outs almost complete, what’s coming next? Jan Segerstam, Development Director, Empower IM Oy 14.5.2013

Page 2: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Content

Empower in brief •  Who we are, what we do Smart Grid and Market Development in Finland “What happened?” •  How is the Finnish Energy Market Structure governed? •  Historical development •  Smart meter enabled change 2008-2014 •  Product examples available now on the market Finnish Smart Grid Development “What’s next?” •  CLEEN – The vehicle for SGEM – what and who is it? •  SGEM key facts, consortium partners and Work Packages •  Highlights of development within SGEM

Page 3: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Multinational Empower provides construction and installation services, maintenance services, and operation and management services for industrial, energy and telecommunications companies.

Owners AAC Capital Partners Holding BV and the company’s management.

Personnel in 5 countries

3300

Empower in brief

Turnover 2011 in M€

405

Page 4: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Empower service portfolio and geographical coverage

Lithuania

Finland

Sweden

Estonia

Latvia

Transmission Project

Division

Network Division

Industry Division

Baltic Division

Information Management���

Division

Page 5: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Finnish Energy Market Control Structure • General legislation • Electricity Market Law • Electricity Market Act

Parliament

• General Commercial Legislation • En. Mkt. Measurement Act • En. Mkt. Messaging Act

Ministry of Employment and the Economy

• Interpretation of laws and acts • Casewise decisions

Energy Market Authority (regulator)

• Interpretation of consumer law • Information on handling of consumer information • Information on consumer information protection

Consumer Protection Agency

• Implementation guidelines on energy market processes • Technical implementation guidelines

Finnish Energy Industries Association

• Balancing agreement • Market Participant Register

Fingrid (System Authority / TSO)

Page 6: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Smart Grid & Market Development in Finland •  1970s

–  New Generation –  Need for load shifts to

maximize plant usage •  1980s

–  Implementation of remote controllable loads

–  CHP scaling for efficiency •  1990s

–  New energy market rules –  Usage of controllable

loads to optimize energy market contract positions

–  Remote disconnectors –  Retail Market Opening

•  2000s –  Implementation of intraday commodity

trading on hourly basis, continued market development

–  Legal unbundling of distribution –  Automated Network Control –  Automated meter infrastructure design

•  2010s –  Automated meter roll out –  Hourly balancing and settlement –  Hourly customer reporting –  Distribution Grid connected production

(PV/Wind) –  Market based Demand Response

Products

Page 7: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Smart Grid & Market Development 2008-2014 •  New legislation (2008)

–  Measurement –  Information Exchange

•  After deadlines were set, implementation

–  Roll out plans for every company

–  Procurement of AMM solutions

–  Delivery of AMM solutions •  Market process change

–  Streamlining and certifying information exchange without major change

–  Change of balance settlement

•  Minimum requirements for installation –  Controllability –  3rd party information access –  Transfer of installed remote controllable

load base

•  Reporting requirements set for suppliers –  Base data to be provided by DSO

•  Data access implementation by DSOs

•  Completion of smart meter roll out and initial process changes by the end of 2013

•  Focus shift from technology to utilization and market model development

Page 8: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Smart Grid Development, products: Fortum

User interface: Mobile device

Hourly product

Weather forecast

Boiler & heat storage

Connection to smart meter

Control unit Messages Alarms Internet

Local wireless

Page 9: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Smart Grid Development, products: Helen

Page 10: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Smart Grid Development: services, Empower IM

Demand Response Load / Generation Control Service

Page 11: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Smart Grid Development, the future

•  Market wide Demand Response Services

•  Efficient Information Exchange

•  Self Healing Networks

•  Dynamic Microgrids

•  Smarter end use devices and Site Energy Management

•  Energy vs. technology (holistic energy optimisation)

•  Resolve & Manage Conflicts of Interest between DSO and Market for implementation of dynamic load and production

•  Develop regulation model to embrace new enablers

Page 12: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

CLEEN - The vehicle for SGEM

Strategic Centre for Science, Technology and Innovation (CSTI) Co-operative and Industry Driven R&D&I company for Energy and Environment founded in 2008. Unique in it’s way of serving 28 industry and 17 research shareholders by driving –  Renewal of industry –  Novel collaboration across industries –  Strategic focus –  Industry’s Commitment and Guidance –  World class competence and resources

Research volume (2012): 39,4 M€ in 6 different research programmes

Page 13: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Positioning of CLEEN Programmes

Research Institutes Scientific Excellence Opportunities

CLEEN Ltd Focus

Practices

Companies Global

Demand Relevance

Public Sponsor National Interest Legal Compliance

Resourcing by Companies > 50%

Shared IPR Access Rights

Fundamental Research Products and Services

Universities R&D and Business Models

”Science Push” ”Market Pull”

Relevant new Knowledge

Joint Apllied Research

Page 14: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Smart Grids and Energy Markets Consortium

Coordinator 1.  Cleen Ltd

TSO, DSOs, Suppliers 1.  Elenia Verkko 2.  Fingrid 3.  Fortum 4.  Helen Sähköverkko 5.  Helsingin Energia 6.  Oulun Energia 7.  Suur-Savon Sähkö 8.  Vantaan Energia

Energy Technology Industry 1.  ABB 2.  Aidon 3.  Empower 4.  Tekla 5.  The Switch

ICT Industry 1.  Cybersoft 2.  Elektrobit 3.  Empower IM 4.  Emtele 5.  Inno-W 6.  There Corporation 7.  Tieto 8.  Viola Systems

Research Partners 1.  Aalto University 2.  Lappeenranta Uni of Tech 3.  MIKES, Centre for

Metrology and Accreditation

4.  Tampere Uni of Tech 5.  Uni of Eastern Finland 6.  Uni of Oulu 7.  Uni of Vaasa 8.  VTT, Technical Research

Centre of Finland

R&D Cooperation – not commercial consortium Joint sharing of Full Access Rights to all results High level of publicity

Page 15: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

SGEM key imperatives & facts

Key Imperatives •  Create Innovation foundation to

enable the Smart Grids vision •  Build internationally applicable

solutions •  Validate in real environment •  Ensure competence accumulation

in research and business •  Utilize interactive international

research environment

Facts •  Focus on power distribution

and interfaces •  The program consists of 7

interlinked work packages and spearhead demo projects.

•  Industry make up 53% of the volume. 21 industry & 8 research partners.

•  ICT companies contribute 25% •  5 year program, 55 M€ budget. •  CLEEN CSTI (Centre for

Strategic Science, Technology and Innovation) program with Tekes public funding.

Page 16: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Future infrastructure of Power systems

Smart Grids

Active resources

Intelligent management and operation of Smart Grids

Driv

ers

and

visi

ons E

nergy market

WP2: MV+LV networks, 4 tasks •  Strategic planning •  Large scale cabling •  LVDC networks

WP5: Active resources 3 tasks •  Distributed

generation •  Electrical vehicles •  Energy storages

WP3: HV networks, 2 tasks •  Utilizing increased controllability for balancing the power system •  Regional subtransmission networks

WP1: Vision of SGEM

1 task

WP6: Intelligent management and operation, 8 tasks •  New ICT in network management, Enabling technologies •  Protection schemes, active network management, microgrids •  Disturbance and field force management, self-healing networks •  Network analysis and planning methods, proactive monitoring

WP7: Energy markets 2 tasks •  Business impacts

and models for different market players

•  The future electricity markets and new sources of flexibility

WP4: Active Customer 5 tasks •  Demand Response

from system and market point of view

•  Customer behavior and viewpoint

•  Estimation of loads, DG and storage

•  Technical solutions for DR, customer gateway and ICT systems

•  Validation and Proof of Concept

SGEM Work Packages

Page 17: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Actions at the customer gateway

Information systems

Loads; controllable, non-controllable

Energy storageGeneration•Solar, wind, fuel

cell, biogas

Grid

Market players; TSO, DSO, supplier, aggregator

Action signals based on optimization against different targets of system players

Active monitoring, optimisation and control of energy use and power flows

Vision: “Power to the People”

Page 18: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

DSO and Service provider OR Energy retailer and Service provider can be the same but still in different roles

Framework for Demand Response

Service provider

Energy Supplier

DSO

HEMS provider

Customer

equipment

equipment, installation, agreement

1)

money

3)

4) Needs and benefits of customer: - energy (money) saving - energy efficiency, ...

1)  Needs and benefits of energy market: * market based demand response * management of balancing power * .......

3) Needs and benefits of DSO: * management of network capacity and avoid of network investments * reducing peak loads and losses * management of disturbance situations - capacity of back-up connections - island operation in long disturbances and maintenance outages - island in MV, LV or customer level for supplying “turvasähkö”

Collects together issues (i.e. concepts, demos, pilots, business models) of demand response from WP3, WP4, WP6, WP7

TSO 2)

2) Needs and benefits of TSO: * use of DR for reserves * ......

Page 19: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

DR and DER on regional HV Networks •  The effects of DR and DER on regional HV networks

–  Capacity of DR in mitigating the reserve requirements –  Scenarios of local generation and its impact on HV grids –  Availability of DR & DER and analysis of risks for HV grids

(Aalto, Helen, VES, Tekla, cooperation with WP 4,5,6)

Page 20: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

LVAC Island grid with distributed energy source Island grid generation using power electronics: battery storage with DC/DC-chopper for power balancing, solar cells and PM wind generator with drive

Battery

Solar Wind

Island Grid

National grid

Island converter

DC/DC chopper

DC-link

Diesel (ABB, TUT)

Page 21: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

820 m

Inv. #1

400 m

Inv. #2AC/DC

Inv. #3

320 m

200 m

Analysis of operation and technical structures of active LVDC distribution system in actual network environment •  Both laboratory environment and practical pilot built with a

Finnish utility •  Developing recreational dwelling and detached house area,

approximately 2 km of underground cabled network in first phase 4 customers, fed by 3 inverters

Items and aspects •  Customer-end inverter •  Control strategies •  Load balancing •  Energy Storages (LUT, TUT, Suur-Savon Sähkö)

Active LVDC distribution system

Page 22: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

3G/GPRS

Disconnectorstation (OH) (O-1061)

SCADA/DMS

RTU560

Recloser - OVR3

Substation A

Control Center

Disconnectorstation (UG)

Disconnectorstation (OH) (O-1088)

M2M gateway

COM600

REF615

REF615

Recloser - OVR3

GACR

GACR

GACR = Grid Automation Control Cabinet for Recloser

Proof of Concept demo with Fortum in Kirkkonummi Centralized fault distance calculation during 2011 •  Fault package generation in substation level instead of system level •  Fault distance calculation in substation level, also to earth faults •  Reclosing location in DMS •  Network automation communication via substation Automatic power restoration possibly during 2013-2014 •  Fault forecasting •  Automatic fault isolation and power restoration (ABB, Fortum)

Self-Healing of rural OHL network

Page 23: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Microgrid management in Hailuoto •  Utilizing local production for automatically creating an island in case of faults

in the national grid •  Diesel Aggregate •  Wind Power •  Configurable island size

•  Automatic island reconstruction and synchronizing to national grid

•  Specific protection scheme which is used during islanding operation –  Two protection schemes:

one for normal operation and one for islanding operation

(ABB, Elenia Network)

Page 24: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

•  8 floors, 42 apartments, 52,5 – 121 m2 •  Complete Q2/2012, in Mäkkylä, Espoo

Sustainable development in collaboration with Fortum, ABB, TUT, Skanska, Kone and others

Reduced carbon footprint with help of Smart Grid •  Electric vehicle for shared use of residents •  Solar PV solution to be installed on the roof •  Accurate and easy energy consumption

monitoring, in real time

•  Home automation to support energy efficiency

Customer feedback for further research and development •  Added value and performance of new services

As. Oy. Espoon Adjutantti

Sustainable Urban Living – an integrated low or net zero energy urban building concept

Page 25: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

•  Finland was in the forefront in deploying smart meters to households

– Extensive knowhow available for best practices

•  Automatic meter reading itself is enough for a positive business case, but more benefits exits

– Accurate knowhow on customer load profiles and network losses à cost savings in network planning

– Automatic fault location in LV networks and outage communication à reduced outage costs

Second generation Smart Metering

Page 26: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Home Energy Management System

•  Pilot started in June 2011, ongoing distributed pilots

•  Consumer needs and profits •  Technical requirements •  Large-scale demand response

possibilities with the system •  Business opportunities (Elenia, ThereCorporation, Empower IM)

Laboratory demonstration for •  frequency dependent load shedding •  connection point peak load reduction •  network overload management •  DG management and production

following •  electric vehicle charging (TUT, There Corporation)

T Electricvehicle DG LoadsAMI

Electricity market Electricity network Monitoring of reservesMonitoring of networkCongestion managementNetwork reliability enhancement

Operation on regulation marketBalance managementProduction followingEtc.

Frequency dependent load sheddingElectric vehicle chargingConnection point peak load reductionEtc.

End customer user interface

Home energy management

Temperature forecastsSpot prices Aggregator

Information aggregationSupervision of ICTOptimal operation of DERs

DR Service

Page 27: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Conflicts of Interests in Electricity Markets

Interactive Customer

Aggregator / Supplier

Conflicts of interests

Generation

DSO/TSO

Threats Opportunities

New Network Tariffs

Page 28: Finnish Smart Grids Jan Segersta… · Jan Segerstam, Development Director, ... – Distribution Grid connected production ... Suur-Savon Sähkö) Active LVDC distribution system

Jan Segerstam •  [email protected] •  +358 44 425 2218

http://www.cleen.fi/en/sgem