restricted © siemens ag 2015 all rights reserved.siemens.com/answers panc presentation lars...

Restricted © Siemens AG 2015 All rights reserved. siemens.com/answers

PANC Presentation

Lars Lee-Potreck / October 2015

Restricted © Siemens AG 2015 All rights reserved.

Siemens Energy Management lives up to future challenges

with the most comprehensive portfolio

Ser

vice

s an

d s

ecu

rity

Software/ITGrid control – big data analytics – grid application

Dig

italiz

atio

nA

utom

atio

n

Communication, automation, protection, and field devices

Ele

ctrif

icat

ion

Electrification solutionsHigh-voltage direct current (HVDC) transmission – grid access – FACTS – air-insulated/gas-insulated substations – power systems solutions – microgrids / nanogrids

Products and systemsHigh-voltage switchgear and systems – power transformers – medium-voltage switchgears – distribution transformers – low-voltage switchboards and circuit breakers

Large power

generation

TSOs1 Oil and gas Industries Infrastructures / construction

DSOs2 and municipalities

Distributedgeneration

1 Transmission system operators2 Distribution system operators


The energy business is changing dramatically


From monopoly power …


Foto: EEX

… to deregulated markets and innovative new service providers.


From downstream power delivery …


… to smart distribution.


From top-down topologies …


… to autonomous local structures.


From predictable long-term value streams …


… to versatile, value-based transactions.


Todays Forces Acting on Utilities

Utility BusinessBusiness

InnovationNew Models

Customer Engagement

RegulatoryMore Efficient Grid Operations

and Energy Markets

Emission Reductions

TechnologyNew Products & Services

Cost Reductions

CustomerNew Expectations

Empowerment

Push toward future scenarios


Implications for Utilities

•Performance based incentives•Preferences for DER as alternative to G,T,D capital•Expanding markets to new participants•Limits on utility ownership of DER•Evolving rate design – NEM, demand charges, time-varying rates

Regulatory

•Declining DER costs•Storage plus onsite generation, microgrids•Cloud-based services•Home /building energy management systems•Cybersecurity threats•Platforms for customer & third party market participation

Technology

•Unbundling•Third-party financing, mgmt, and operations of DER•Services bundling – communications, home security, energy mgmt•Participation of DER in energy markets•Aggregation

Business Models

•Exercising economic/environmental choices•Taking more control, reducing energy usage•Expecting more online data and applications•Focus on lifestyle choices•Diverging by segment - low income/high tech/sustainable/etc.

Customer

Evolving Utility Capabilities

Dynamic, Two-Way Grids

Engagement

New Utility Roles


Market Roles

CUSTOMER OPERATIONS

• Billing• Customer service

DISTRIBUTION/TRANSMISSION

• Reliability • Efficient O&M , including asset

management (AM)• Internal power plant integration

ENERGY TRADING

• Wholesale energy and capacity

GENERATION• Reliability• Optimized fleet• Efficient O&M

Traditional Roles

ENERGY SERVICES PROVIDER• Default power, billing, customer service

• Energy services• DER offerings

DISTRIBUTION OPERATOR (DSO/DNO)• Reliability, efficient O&M, AM

• DER integration

DISTRIBUTED SYSTEMS PROVIDER (DSP)• Platform provider

MERCHANT GENERATION• Reliability, fleet, O&M

New Roles

REGULATED GENERATION• Reliability, fleet, O&M

ENERGY MARKETPLACE• Wholesale energy, capacity

• Central data hubs

TRANSMISSION OPERATOR (ISO/TSO)• Reliability, network, O&M, AM• Wholesale supply integration

ENERGY SERVICES PROVIDER• Competitive power, bill, customer

service• Energy Services

• DER offerings

Energy Services Provider

Grid Integrator

Market Integrator

Regulated

Lightly or unregulated


Market Examples – and Opportunities

Market Structure

California –Mixed Market

New York – Mixed Market

Texas –Competitive

Retail

UK – Competitive

Retail

Germany – Mixed Market

Malaysia - Emerging


Not allowed Not allowed


Distribution Operator (DSO/DNO)

Transmission Operator (ISO/TSO)

Distributed Systems Provider (DSP)

(future) (future) (future) (future)

Energy Marketplace

GeneratorNot allowed Not allowed Not allowed Not allowed

Generator

Regulated

Lightly or unregulated


GridIntegrator

Market Integrator

*

* Under special circumstances


Regulated and unregulated retailers and aggregators are transitioning from selling commodity to providing customer centric services such as efficiency, demand response, DER enablement and management, and others

Siemens: Products and services in data management and analytics, customer engagement, product enablement, and energy services for attracting and retaining customers and meeting regulatory requirements.

Market integrators will enable new and expanded market participation via the data and transactions needed for customers to participate in the energy market – including expanding markets to the distribution level via market platforms

Siemens: Applications that enable market operators to process, manage, and exchange data in the complex world of advanced metering and robust expansion of distributed energy resources (DER).

Distribution and transmission operators are focusing on efficiency for CAPEX and OPEX for the grid and devices. Leaders are adding distribution platforms to optimize DER integration.

Siemens: Products and services for optimal grid investment and operations, including managing assets, devices and business processes to maintain and enhance reliability while maximizing efficiency.

Energy ServicesProvider

Grid Integrator

Market Integrator

Today’s – and Tomorrow’s – Market Participants


Adoption cycle of Transactive Energy Resnick Sustainability Institute

Source: GridWise Architecture Council Transactive Energy FrameworkPaul De Martini, 1st International Conference and Workshop on Transactive Energy


Grid of the Future

Source: SCE


Resulting in the Transactional Grid

Grid Control

Market Operations

Smart Devices

Empowered Customers

Observable with sensors and dynamic operating models

Loosely coupled network of networks

Control points with closed loop operation

Forecasting to support a dynamic market environment

Information security

Market-aware grid-friendly devices to serve the consumer & grid

Autonomous rules or goals-based operations

IPv6 & Std protocols

Secure e.g. PKI Management of

devices and distributed apps

Transparent Pricing

Energy & Transport priced separately

Grid connection location matters

Fluid movement among product & service choices & payment options

Interval meter settlements

Information security

Source: Siemens Transactive Distribution Grid Ecosystem


How the Digital Grid Can Help Solve California’s Challenges

Renewable Over-Generation

Greater regional cooperation facilitated by

Advanced Market Management

(i.e. Energy Imbalance Market)

DERs causing an unstable distribution grid

Full enablement of DERs with visibility, control, and market

interaction using a

DER Management System (DERMS)

Need for reliability and power quality driving microgrid

adoption

Smart control in parallel or as an island using a

Microgrid Management System (MGMS)

Aging Infrastructure creating an increase in outages

Creating a self healing grid with the addition of sensors and

intelligent field devices and an

Advanced Distribution Management System (ADMS)

Customer-centric services

Utilities need to maintain and increase their value proposition

towards customers, via e.g.

Secure Development Innovation Environments

Endless data being generated by new smart networks

Data tsunami being used to generate actionable intelligence

and automation

Smart Grid Analytics

restricted © siemens ag 2015 all rights reserved.siemens.com/answers panc presentation lars...

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