irec part 02

Smart grids: integration of renewable energy sources and

electric mobility into power system

Granada, April 28th 2016www.irec.cat

Manel SanmartçiElectrical Engineering Research Group

1. Advanced energy management tools for power systems

2. Cost benefit analysis of Smart Grid Projects

3. Life Cycle Assessment of Smart Grid Projects

CONTENTS

PART I

Advanced Microgrids Management System

PART II

Commercial Aggregator

5 key questions to be answered

What is

IREMS?

How does

work?How can

users interact

with IREMS?

advantages

does IREMS

offer?

What is our

experience?

What is IREMS?

IREMS is an Energy Management System developed by IREC.

IREMS is able to optimally manage several kind of generators, loads andstorage units under a common goal: to make more cost-effective andefficient your Microgrid.

IREMS is a gateway between a Microgrid and an external agent such asCommercial Aggregator.

How does IREMS work?

Internet

Weather Server Energy Price Server

Demand Forecaster

Energy

Planning

Energy

Balance

• Optimization ModuleConsidering demand and weather forecast, and energy price

Energy Planning

Energy Balance

Demand Forecaster

• Real Time ModuleEnergy balance at real time

• Machine Learning moduleTo improve demand and mobility forecast

IREMS features

• Data logging and event logging• Notifications management• Provide communication

channels

COMMERCIAL

AGGREGATOR

How does IREMS work?

The objective

is to calculate the optimal energyplanning of power consumed orgenerated by every unit in the microgridwithin a 24-hour scope.

Energy management relies on two steps

The strategyis to minimize the daily cost by makinguse of the difference among electricityprices and the flexibility of the microgridelements.

DataTo perform this operation, the followinginformation is used:

•Microgrid configuration and current status.

•Real time measurements.

•Weather forecasts (wind speed, solar irradiance,temperature).

•Demand forecasts.

•EV mobility forecasting.

•Energy price.

Energy Planning (Optimization Module)

ExecutionThe Optimization Module runs every 15 minutes.

How does IREMS work?Energy management relies on two steps

2 Energy Balance (Real Time Module)

The objective

is to ensure the power balance for allelements in the microgrid and to send theset-point to each controllable component.

The strategyIf there is any deviation, this modulecarries out adjustments over thepreliminary set-points calculated by theOptimization Module until to achieve theenergy equilibrium.

DataTo perform this operation, the followinginformation is used:

•Microgrid configuration.

•Optimization Module results.

•Real time measurements and status.

ExecutionThe Real Time Module runs every 3 seconds.

External interfaces

• Responsible for the proper operation of IREMS

• Control the access of other actor to IREMS.

• Have total information access.

• Remotely interact with IREMS through a thin client with a

Graphical User Interface (GUI).

• Owns one power unit or more in the microgrid.

• Able to access to some information of the element that (s)he owns.

• Able to modify some parameters.

• Remotely interact with IREMS through a thin client with a GUI.

• Requests measurements and forecasts of the microgrid

• Limit total power consumed/generated by the microgrid.

• Remotely interact with IREMS through a thin client with a GUI.

How can users interact with IREMS?

e - P E M S

Administrator

ADMINISTRATOR

CLIENT

e - P E M S

Client

e - P E M S

External Agent

EXTERNAL AGENT

What advantages does IREMS offer?

Possibility of operation using the IREMSuser interface fully integrated into theclient system.

IREMS is able to automatically manageenergy supply, demand and storage at realtime.• It is able to manage the monitored data

from grid-connected systems.

• It is able to decide the optimal behaviourof the systems at real time based onadvanced optimization algorithms.

• The final user can choose among differentmodes of operation: cost minimization environmental footprint peak shaving, among others.

Different types of users with differentlevels of permissions and access

Competitive advantages over other products on the market

Machine Learning

What advantages does IREMS offer?

Advantages for the different agents/clients

Residential and tertiary buildings

In case they incorporate theproduct to their buildingmanagement company, theywill receive a large share of thebenefits.

Energy companies Power

System

Society

Residential andtertiary buildings

Management of local demandand supply will enablerenewable sources penetrationas well as the decrease of peaksin the demand curves.That will defer investmentsrequired for grid reinforcementsand consequent grid losses.

Societal and environmentalbenefits from energy efficiencyare well-known including GHGemission abatement.

They will be able toincorporate this tool to theirexisting solutions andequipment to add the real timecontrol and optimization layer.

What is our experience?

Theoretical and experimental development

Registration of the intellectual property

Implementationand validation in IREC SmartEnergyLab

Adaptation and deployment for two real demo sites in client facilities

PART I

Advanced Microgrids Management System

PART II

The needed of a new agent

FunctionalitiesAdvantages

State of development

5 key questions to be answered

Significant change of energy systems

The needed of a new Agent

Commercial Aggregator Concept

Main role of the Commercial Aggregator (CA) is

to gather flexibility products from its

prosumers portfolio, who do not have the size

to trade directly into wholesale markets, and to

optimize its trading in electricity markets

aiming to maximize its profits.

This new agent would provide direct revenue to the businesses and

homeowners, besides ensuring higher stability and efficiency in the grid

Commercial Aggregator is the key mediator between the consumers

and the markets and the other electricity system participans

Key enabler of “FLEXIBILITY”

Commercial Aggregator ConceptKey enabler of “FLEXIBILITY”

BUY/SELL ELECTRICITY

BUY/SELL ELECTRICITY CONTRACTS

Network

access

contract€

SELL ELECTRICITY

BUYSELECTRICITY

ELECTRICITY CONTRACTS

(BUYS)

FLEXIBILITY SERVICES

• To simulate the behaviour of the

average consumers under different

price and volume signals.

• To obtain the aggregated response for

the whole clusters.

Functionalities

Prosumers portfolio

2 Consumer Segmentation(Clustering)

1 Consumption Forecasting

Clusters

4 Market forecasting• To forecast the market price of

sold and purchased electricity.

These methodologies rely on

statistical and financial analyses of

the markets where CAs participate.

Clients CA Forecasters Markets

3 Flexibility

Forecast Tool

Outputs5 The Commercial

Optimal Planning

To calculate the optimal

incentive and bidding

policy in order to maximize

the profits of the

Commercial Aggregator.

RESULTS

ResponsibilityCA are totally responsible for their own

imbalances, so they will have to deal with their

own energy paybacks when participating in

wholesale markets

Commercial Aggregation is considered as a key innovation on the power system to

face future challenges posed by growing demand and RES integration

Procurement of flexibility productsThe DSO can access and procure flexibility

products offered by commercial aggregators to

use them for a number of purposes (e.g.

distribution network reinforcement deferral,

congestion management, etc.).

Applications and advantages of the CA

Easier to forecast

consumption and

flexibility

Consumers deal with

only 1 agent instead of 2

Less contracts and less

connections

Contracts easier to handle.

Billing is easier

More efficient

solutions

Validation of flexibility ProductsTo validate flexibility products prior to its

activation, when used by other agents different to

the DSO itself.

State of development

IREMSTheoretical and experimental development

Registration of the intellectual property

Implementation andvalidation in IREC SmartEnergy Lab

Adaptation and deployment for two real demo sites in client facilities

Theoretical and experimental development

Implementation and validation in IREC SmartEnergy Lab

CONTENTS

Security of supply:

• Use of DG as a back-up resource

• DG applications for service restoration

Sustainability:

• RES integration

• Emission reduction

• Power smoothing

Economy:

• Gen. costs reduction

• Ancillary services

• Investment deferral

New investments

on smart grid

technology

Cost-benefit

assessment

required!

Cost benefit analysis of Smart Grid Projects

THE CONTEXT JRC METHODOLOGY CONCLUSIONS

Objectives of the Smart Grid

BENEFITS COSTS

Costs and Benefits of the Smart Grid (USA Case Study)

TOTAL AMOUNT OF COSTS: 338.000 – 476.000 M$benefit-to-cost ratio range between 2.8 and 6.0

34% 16% 50%

Europe - Investment in Smart Grid projects 2013

The recent EC Communication on

Smart Grid “Smart Grids: From

Innovation to Deployment” states that

the EC intends to come up with

guidelines the Cost Benefit Analysis

(CBA) to be used by Member States for

Smart Metering projects and Smart Grid

projects.

The Joint Research Center (JRC)

has recently published the “Guidelines

for conducting a cost-benefit analysis

for Smart Grid projects”

(http://ses.jrc.ec.europa.eu).

Characterize the project:

Step 1: Review and describe the technologies,

elements and goals of the project

Step 2: Map assets onto functionalities

Estimate benefits:

Step 3: Map functionalities onto benefits

Step 4: Establish the baseline

Step 5: Monetise the benefits and identify the

beneficiaries.

Compare costs and benefits:

Step 6: Identify and quantify the costs

Step 7: Compare costs and benefits

Source: http://ses.jrc.ec.europa.eu, 2012.

Main objective: The REVE project (Wind

Regulation through Electric Vehicles)

aimed to perform a study thoroughly

assessing the key technical challenges

and the most relevant economic aspects

in order to create a network

infrastructure so that electric cars may

act as energy storing facilities in the

electric network while they are not

circulating, thus contributing to an

improvement of the load factor of the

electric system as a whole.

CASE STUDY: THE REVE PROJECT 2009-2010

Daily electricity demand profile

MW Rest of renewable

resources and convenctionalpower plants

Necessary for maintaining

the control of the system

During off-peak periods the risk of wind energy

disconnection is hight

Rest of generation

Electric

Vehicle

Wind Energy

Minimum technical requirement

SHORT TERM EXAMPLE “REVE PROJECT”

Offer bids

Purchase bids

Nuclear Power

Plants

Wind Power

Plants

Rest of

conventional

generation

Market

In some cases, when demand is low and there is a high wind

generation, spot prices can fall to zero. For the Spanish case, in

such moments, wind generation has to be disconnected.

Amount of

disconnected

generation

Amount of disconnected

wind generation:~ 2.000 MW

… BUT, IF PRICE IS

WHY CONSUMERS

DON’T CONSUME?

BECAUSE

THEY CAN’T

SEE THE

REAL COST

OF ENERGY

DEMAND SIDE MANAGEMENT

The modification of consumer demand for energy through various

methods such as financial incentives and education. Usually, the

goal of demand side management is to encourage the consumer to

use less energy during peak hours, or to move the time of

energy use to off-peak times such as nighttime and weekends.

By using demand side management tools, electric vehicle energy consumption

would be concentrated during off-peak periods, increasing demand around 5.000

MW in 2020.

2020 PROSPECTIVE WITHOUT EVs 2020 PROSPECTIVE WITH EVs

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23G

Characterization of REVE project:

Step 1: The project was focused on analyzing the effect on the power

system of plug-in electric vehicles charged by means of smart chargers and

energy management systems.

Step 2: The usage of the electric vehicles reduces fossil fuel consumption

and emissions. Smart chargers and energy management systems allow EV

users to respond to price signals.

Characterize the project:

Step 1: Review and describe the technologies,

elements and goals of the project

Step 2: Map assets onto functionalities

http://www.evwind.es/

Estimate benefits:

Step 3: Map functionalities onto benefits

Step 4: Establish the baseline

Step 5: Monetise the benefits and identify the beneficiaries.

Estimate benefits of REVE project:

Step 3: Fossil fuel savings improves Spanish trade balance and need for

CO2 bonuses. Demand response shifts EV load to off-peak periods and

increase power system capacity for wind power.

Step 4: Estimation of energy sector evolution without EVs.

Step 5: Comparison of the 2020 10% EV penetration scenario with the

baseline.

Estimate benefits (1/2): Wind energy curtailment2

Wind energy

curtailment 2020

Daily period Night time

Lost production Economic

losses

Lost production Economic

losses

Without EVs0.95 %

M€/year1.60 %

M€/year

With EVs0.28 %

M€/year0.55 %

M€/year

Savings 40

M€/year

TOTAL SAVINGS

PER YEAR102 M€ / year 2020

(*) Conventional generation minimum output: 12.000 MW

Estimate benefits (2/2): Fossil fuels imports and emissions2

Emissions (MtCO2)* 2012 2016 2020

Average emissions from

conventional vehicles

(grCO2/km)

170 160 150

Emissions avoided by

transport1,5 3,5 9,9

Emissions increased

from power generation0,4 0,9 2,7

Emissions avoided

(MtCO2)1,1 2,6 7,2

Energy cost (M€) 2012 2016 2020

Reduced raw material

imports from transport

(M€)

0 1.263,46 4.255,77

Increased imports of

raw materials for

power generation (M€)

0 193,85 538,11

Oil price (€/barrel) 120 150 180

Savings in raw material

imports (M€)0 1.069 3.717

*Average daily driving distance 60 km/day

Compare costs and benefits of REVE project:

Step 6: Perform a cost estimation for the electric vehicle surplus

cost vs. conventional ICE vehicles, for the smart charger and for the

energy management system.

Step 7: Compare costs and benefits in a yearly basis.

Compare costs and benefits:

Step 6: Identify and quantify the costs

Step 7: Compare costs and benefits

Compare costs and benefits:3

-1,800

-1,600

-1,400

-1,200

-1,000

2012 2013 2014 2015 2016 2017 2018 2019 2020

Smart chargers

EV cost surplus

Compare costs and benefits:3

-2,000

-1,000

2012 2013 2014 2015 2016 2017 2018 2019 2020

Fossil fuel savings

Wind energy curtailment

CO2 emmissions

Smart chargers

EV cost surplus

Present value

Net Present Value:

NPV = 365 M€

Real examples: Smart meters roll out CBA (Electricity and Gas)

1. Given the economic potential of the Smart Grid and the substantial

investment required, there is a need for a methodological approach

to estimate the costs and benefits.

2. Previous results for the United States identify the main benefits at the

environmental, economical and security of supply domains. Most

of the investment will have to be done at distribution network level.

3. The JRC has published the “Guidelines for conducting a cost-benefit

analysis for Smart Grid projects” that could be the first step for a

European harmonization in CBA estimation for Smart Grid projects.

CONTENTS

LCA - CONTENT

· Introduction to the Life Cycle Thinking

· What LCA stands for?

· Background LCA references

· Case study

LCA - CONTENT

· Case study

INTRODUCTION TO THE LCT

Target:

Achieving Sustainable

Development

Methodologies:

• Life Cycle Assessement (LCA)

• Life Cycle Costing (LCC)

• Social Life Cycle Assessement(SLCA)

LIFE CYCLE THINKING

Definitions of Sustainable Development

ENVIRONMENTAL POLICIES INTRODUCTION TO THE LCT

Objectives for environmental protection based on the concept of

sustainable development.

Topics to be addressed: - Prioritize between these objectives

- Quantification of the social

ENVIRONMENTAL POLICIES

Ecology

• Respect the natural environment itself

• Biodiversity

• Preservation of resources

• Protection of ecosystems

Social aspects

• Health

• Security

• Equalopportunities

• Work

• Preserving resources for future generations

Economy

• Increasingcompetitionbetweencompanies

• Macro-economicstability

• Economic welfare of the population.

Life Cycle Thinking

Responds to the

problem avoiding

creating a new

problem

Source: PE International

LCA - CONTENT

· Case study

LCA: Life Cycle Assessment

The Integrated Product Policy (COM (2003)302) identified Life Cycle

Assessment (LCA) as the “best framework for assessing the potential

environmental impacts of products”. It can also be applied to any process or

service.

WHAT LCA STANDS FOR?

According to ISO 14040, LCA is:

"Compilation and evaluation of inputs, outputs and potential environmental

impacts of a product system throughout its life cycle."

definition

Inventory

analysis

Impact

assessment

Interpretation

Goal and scope

definition

Inventory

analysis

Impact

assessment

Interpretation

INTRODUCTION TO LCAWHAT LCA STANDS FOR?

Integrated assessment of environmental problems

- Global warming

- Acidification

- Ozone layer depletion

- Smog

- Eutrophication

- Toxicity

- Others…

ENVIRONMENTAL

IMPACTS

3. PARTS AND

COMPONENTS

MANUFACTURIN

9. COLLECTION AND

WASTE MANAGEMENTLANDFILL

INCINERATION

5. DISTRIBUTION

4. INSTALLATION

AND ASSEMBLY

7. MAINTENANCE /

REPAIR

2. TRANSPORT AND

RAW MATERIALS

PROCESSING

1. RAW MATERIAL

EXTRACTION

RECYCLING

8. REUSING

6. USE

What would happen if ... I do not consider the whole life cycle?

Example 1: For the design of a vehicle,

I choose materials (option B) with a low

environmental impact in their production

compared to option A materials.

However, they are less durable and

need to be replaced more often (use),

generating more waste (end of life).

Which is the best option?

Example 2: In the design of a car, it

uses a large amount of aluminum. This

material requires much energy to

produce, but to be lighter car uses less

energy during use.

INTRODUCTION TO LCAWHAT LCA STANDS FOR?

What would happen if ... I do not consider different environmental impacts?

Example 1: In the design steel or aluminum can be chosen. Which material is

better from an environmental point of view?

INTRODUCTION TO LCA

Global Warming Potential vs Acidification Potential

LCA - CONTENT

· Case study

ISO 14.040: 2006 Environmental management -- Life cycle

assessment -- Principles and framework

ISO 14.044:2006 Environmental management -- Life cycle

assessment -- Requirements and guidelines

Relevant organizations

LIFE CYCLE UNEP – SETAC INITIATIVE

http://lcinitiative.unep.fr/

EUROPEAN PLATFORM ON LCA

http://eplca.jrc.ec.europa.eu/

Standards

BACKGROUND LCA REFERENCES

Most relevant LCA related scientific journals

International Journal of Life Cycle Assessment

www.scientificjournals.com

Journal of Cleaner Production

www.sciencedirect.com

Environmental Science and Technology

http://pubs.acs.org/journals/esthag

International LCA meetings

SETAC (Society of Environmental Toxicology and Chemistry) www.setac.org

LCM (Life Cycle Management) www.lcm2013.org/

RED ESPAÑOLA ACV (CIEMAT) http://www.energy.imdea.org/events/2013/i-

simposio-de-red-espanola-de-analisis-de-ciclo-de-vida-acv-bioenergia

Software

1. GaBi 6 (PE International)

2. SIMAPRO (Pre Consultants)

3. UMBERTO (ifu Hamburg)

4. TEAM (Ecobilan – PricewaterhouseCoopers)

5. WISARD (Ecobilan- PricewaterhouseCoopers)

6. Others:

http://lca.jrc.ec.europa.eu/lcainfohub/toolList.vm

Most relevant databases

1. GaBi 6 Professional (PE International) (www.pe-international.com)

2. Ecoivent 3.0 (www.ecoinvent.org)

3. ELCD (http://eplca.jrc.ec.europa.eu/ELCD3/)

4. Plastics Europe

5. Other: http://eplca.jrc.ec.europa.eu/ResourceDirectory/databaseList.vm

LCA - CONTENT

· Case study

Goal and scope definition

LCA USE CASE: ELECTRIC VEHICLE

Provide policy and decision makers with

“FACTS” for decisions on EV related issues

Objectives

Improve “END OF LIFE

MANAGEMENT” by promotion of

best available

technologies&practices

Improve “DESIGN” for optimal

recyclability and minimal

resource consumption

Goal and scope definition

Operation

Vehicle B

Vehicle C

Vehicle A

The study’s main objective is to carry out a Life Cycle Assessment from cradle

to grave of the following products with the aim of comparing the different

environmental impacts:

Ion-lithium battery electric vehicle

Diesel vehicle

Petrol vehicle

All the analysed vehicles belong to the Spanish Segment C (length from 4.20 to

4.50 m)

Goal and scope definition1

2 Inventory analysis

Electricity

supplyPetrol / Diesel

supply

Raw materials

and productionIn-Use Disposal

Electric

vehicles

Diesel/Gas

vehicles

Functional Unit = Ion-lithium battery life = 100.000 km

Li-ion Battery

(312 kg)

Electric motor

(52 kg)

Bodywork

Golf A4Internal combustion engine

(62,2 % EURO 3 / 37,8 % EURO 4)

ACTIVIDADES INICIALES DE I+DLCA USE CASE: ELECTRIC VEHICLE

10,58 %1,00 %

20,80 %

8,57 %

0,07 %

25,71 %

15,84 %

2,70 % 14,73 %

Hydro-electric power Pumped hydro-electric power

Nuclear power Coal

Gas/Fuel Combined cycle

Wind energy Solar energy

Other renewable energies

55,54 %21,31

18,15 %

0,11 %0,13 % 1,93 % 2,83 %

64,72 %

30,10 %

0,09 %3,37 % 1,73 %

Data source: REE, 2010.

Energy consumption:

Total energy consumption (MJ-Eq / km)

Renewable energy consumption (MJ-Eq / km)

Emissions:

PM particulates (g of PM / km)

Nitrogen oxides (g of NOx / km)

Carbon dioxide (g of CO2 / km)

HC emissions (g of HC / km)

Impact assessment3

ACTIVIDADES INICIALES DE I+D

Impact assessment3

0.00 €

500.00 €

1,000.00 €

1,500.00 €

2,000.00 €

2,500.00 €

3,000.00 €

3,500.00 €

Mainland EV Balearic EV Canarian EV Diesel Petrol

CO2 NOX Particulate matter NMHC

Interpretation (environmental)4

0.00 €

2,000.00 €

4,000.00 €

6,000.00 €

8,000.00 €

10,000.00 €

12,000.00 €

14,000.00 €

16,000.00 €

18,000.00 €

Mainland EV Balearic EV Canarian EV Diesel Petrol

Energy Imports CO2 NOX Particulate matter NMHC

Interpretation (energy & environment)4

Results confirm that energy and environmental impacts of the EV are highly

dependent on the electricity generation mix

Presumably the growth of renewable energies in the different generation

mixes will play in favour of the EV and widen the distance with the combustion

engine technologies

The EV shows a reduction in the global energy consumption for the total life

cycle. However, embedded energy from production will increase, due to the

addition of components such as advanced battery packs, electric motors and

power electronics.

The EV almost eliminates the problem of local pollutants (NOx, PM10, HCs)

in urban areas

The Mainland EV shows a relative reduction of energy and environmental

externalities of 59% compared to the diesel vehicle and of 61% compared to

the petrol one

Conclusions and recommendations5

Ongoing projects

FUTURE APPLICATIONS OF THE LCA METHODOLOGY

Project Acronym: SAPIENS (SOFC Auxiliary Power In Emissions/Noise Solutions)

Project reference: 303415 Contract type: Collaborative Project

Start date: 01 November 2012 End date: 31 October 2015

Duration: 36 months Project status: ongoing

Project cost: € 2.37 milion (2,370,257.20 euro)Project funding: € 1.59 milion (1,592,341.40

Programme Acronym: FP7-FCH-JUProgramme type: Seventh Framework

Programme

Ongoing projects

Project Acronym: LED4ART (High quality and energy efficient LED illumination for art)

Start date: 01 January 2012 End date: 31 December 2014

Project cost: € 1.91 milion (1,907,110.00 euro) Project funding: 867,000.00 euro

Programme Acronym: CIP-ICT-PSP-2011-5Programme type: Competitiveness and

innovation framework programme

Ongoing projects

Project Acronym: HELIS (High energy lithium sulphur cells and batteries)

Start date: 01 June 2015 End date: 31 May 2019

Project cost: € 7.97 milion (7,975,152.00 euro) Project funding: 7,975,152.00 euro

Programme Acronym: NMP-17-2014Programme type: research adn Innovation

action

Other applications…

https://www.youtube.com/watch?v=PWncrFwhaiE

Sponsors:

Financed by:

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