smart energy management in grids
TRANSCRIPT
Smart Energy Management in GridsSmart Energy Management in Grids
Smart grid technologiesSmart grid technologies
Avimanyu Basu, Research Analyst
Energy & Power Systems
3rd September 20133rd September 2013
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Avimanyu Basu, Research Analyst
Frost & Sullivan
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Today’s Presenter
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•Expertise: familiar with emerging technologies in sustainable energy (electric
vehicles, fuel cells, wind energy, solar energy, ocean energy, smart grid etc) and
nanotechnology domain
•Years of experience: about 3 years of experience in market research, consulting
and manufacturing.
www.linkedin.com/pub/avimanyu-basu/18/132/64a
Poll Question
How much would be the smart grid market worth of in 2020?
• US $ 50-100 billion
• US $ 150-200 billion
• US $ 250-300 billion
• US $ 300-350 billion
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• More than US $ 350 billion
Occasion for the Analyst Briefing
Smart energy management develops a more energy efficient economy base on minimum energy losses, low carbon footprint, maximum utilization of
renewable and reduces dependence on fossil fuels
Smart energy management can be considered the common area of interest among all developed as well as developing nations of the world with ever-
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among all developed as well as developing nations of the world with ever-increasing energy demand, rapid depletion of fossil fuels and alarming
environmental issues
Strategies adopted by global smart grid participants and potential points of investment in the value chain
Smart Grid Segments
Smart T&DDistributed Generation, Integrated Renewable
Resources, HVDC, Substation Automation
Smart End User AMI, EMS
Smart Service Demand Response
Various components and functionalities of the smart grid could be classified according to the following segments
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Smart Grid
Smart StorageIntegrating Energy Storage
Systems for Back-up
Smart Transportation EV Charging
• Intelligent Electronic Devices that are connected in the digital substations can communicate over the grid system
• Presently, IEC 61850 is the most commonly used standard
• Generation of the own electricity requirements by consumers, normally from solar or wind energy
• The excess energy is input to the grid resulting in monetary benefit of the consumer
• Ability of an energy storage system to store energy during off-peak and supply during peak hours
Substation
Automation
Distributed
Storage
TRENDS
Distributed
Generation
Key Trends
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during off-peak and supply during peak hours• EVs can utilise dynamic pricing (store while prices are
low and supply while prices are high) through this, utilities can implement peak-shaving and load levelling
• Used by utilities to improve reliability, predictability and speed of load curtailment during peak hours which balances the demand and supply.
• Usually used for large energy users (commercial and industrial customers
• This could be considered to be one of the tools to bringdown consumer electricity bills
• The HEM momentum would be driven by time-of-use(TOU) pricing, and DR programs.
Automation
Home Energy
Management
Automated
Demand
Response
TRENDS
Furthermore..
TRENDS
Innovation in software platform engaged in demand response is presently
being noticed among a number of SMEs, the market leaders tend to go for
M&A activities with these companies
Government of countries active in the smart grid domain revealed their
plan to deploy smart meters across the country in millions
Emergence of real time grid analytics, which would provide precise
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TRENDSEmergence of real time grid analytics, which would provide precise
information about numerous elements of the grid considering parameters
associated with weather conditions, geographic location and asset
information
Implementation of up-to-the-minute technologies in power transmission,
energy management in all levels reduces energy losses to a minimum
Smart Grid Characteristics
Two-way communication enables active participation of the consumers, leading to benefits for the grid as well as the environment, bring along lower cost of electricity
fromSelf healing functions to recover fromThe consumers are provided the
Flexibility to accommodate all energy generation and storage technologies
promises the establishment of the cleaner and more efficient energy grid
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Smart GridFeatures
Self healing functions to recover fromsystem disturbances through round theclock assessment and analysis ofvarious grid functions and continuousinspection of health of the components
Promises security against power theftand resists natural calamities
Both utilities and consumers are encouraged to switch to renewables through efficient addressing of the
associated challenges such as seasonal availability
The consumers are provided the freedom to select their electricity supplier and monitor their energy
usage
Key Drivers Summary
Maximum utilization of remote and distributed generation
Elimination of seasonal factor in renewables
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Adoption of Electric Vehicles
result in new loads
Improvement in reliability by
upgrading age-old
infrastructure
Contribution of excess energy
onto the grid by consumers result
in monetary benefit
High efficiency throughout output
range
Source: Frost & Sullivan.
Heavy investment
involved initially on every aspect
i.e. R&D and implementation
Consumers reluctant on
investing due to higher
initial cost
EM fields caused by smart meters
often affects humans (electric
poisoning)
Key Restraints Summary
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Vulnerable to cyber attacks
Source: Frost & Sullivan.
Market Scenario
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25
20.6
• The smart grid market is estimated to be at $57.5 billion by 2015 and exceed 380 billion by 2020.
• By 2015, the following domains can be estimated to draw maximum investments
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Source: Frost & Sullivan
0
5
10
15
T&D AMI sensors software and hardware
wireless and communication infrastructure
3.7
8
12.213
US
D b
illio
n
Smart T&D
USD $ 76 mn through 9 deals from global VC funding, through modifications related to grid optimization
Trends directed towards making cost of DC at par with AC, integration of renewables etc
EU leads, followed by US
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LVHVHV User
Image Source: Frost & Sullivan
Smart End Users
The AMI segment acquired USD $63 mn in eight deals in 2012 from VC funding, globally the AMI domain gathered a funding of USD $3.6 bn in 2012.
Smart meter is the part of smart grid that attracted the most funding, significant R&D and installations worldwide
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Image Source: Frost & Sullivan
Utility Power Grid
Home Breaker
Box
Appliances, EV Charging
Data Processing Unit
Linear Sensor
Renewable Energy Current Sensor
Current Sensor
Internet
Smart Service
From venture capital funding, the demand response sector acquired USD $82 mn in 10 deals in 2012
US leads in software platform development, all major M&A activities in this segment
In Europe, investment of around EUR 210 mn, In the US, around USD $ 200 mn was allocated for efficiency-related programs, of which demand response occupies a major portion
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Less consumption, shift consumption,
curtail during critical peaks
Peak Load
Supply = Generator 1+ Generator 2+ Generator 3
Demand = Building 1+ Building 2+ Building 3
DR
Image Source: Frost & Sullivan
efficiency-related programs, of which demand response occupies a major portion
Smart Storage
2012 saw a funding of around USD $ 35-40 bn in the segment globally
Aims to develop stability in renewable power generation
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Image Source: Frost & Sullivan
Regulator
Inverter
STORAGE
Smart Transportation
The vehicle-to-grid infrastructure segment of the smart grid acquired a funding of around USD $ 720 mn globally in 2012
Focuses on charging EVs through conductive or inductive charging, capture renewable energy and utilize them for charging EVs
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Image Source: www.psmag.com and www.mauinow.com
Potential Global Hotspots
China1. Substation
Automations2. AMI3. Smart
Transmission
N. America1. Grid operation
software2. Grid Analytics3. Smart
Transmission
Europe1. Smart
Transmission2. AMI3. Substation
Automations
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Asia Pacific1. Substation
Automations2. Grid operation
software3. Smart
Transmission
S. America1. AMI2. Substation
Automations3. Smart
Transmission
Image Source: Frost & Sullivan* 1,2,3 denotes the most promising areas of development
Conclusion
� Maximum investment recorded in China, followed by the US and Europe. Next comes Japan, Korea and Australia
� M&A, contract R&D, strategic partnerships and JVs could be considered as the major trends in the smart grid domain. The market leaders tend to kill competition through these strategies
� Software platforms for energy management is the major area of
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� Software platforms for energy management is the major area of interest for SMEs. The other segments such as advanced T&D, AMI, renewable energy integration etc. are monopolized by energy and automation market leaders
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