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Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done with: John Collins , Micha Kahlen, Markus Peters, Konstantina Valogianni, and many others. Erasmus Centre for Future Energy Business

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Page 1: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Transforming Energy Business: A Global Sustainability Challenge

Energie Nederland Conferentie, Den Haag, June 16, 2014

Wolf Ketter – @wolfketter

Work done with: John Collins , Micha Kahlen, Markus Peters,

Konstantina Valogianni, and many others.

Erasmus Centre for Future Energy Business

Page 2: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Shale gas / Fracking

Rising Demand Rising Prices

Financial Crisis

Fall in private investment, tight financing conditions

FukushimaSome countries phase out nuclear power production

By 2030, world economy set to double and energy demand to

rise by 1/3

Crimea Conflict

Europe’s dependence on Russian gas and oil

US gains more independence from foreign fossil fuels

Global Energy Markets are Facing a New Reality

Energie-wende

Transition to renewables

without losing reliability &

competitiveness!

Page 3: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

3

Electricity

• $371bn business(in the US, 2011, Source: OECD)

• one million e-vehicles on US roads by 2020(Kassakian et al., The future of the electric grid, 2011)

• $4.5tn annual digital economy spending(Gartner Group, 2013)

• $10bn cost for a major US blackout(Fox-Penner, Rethinking the Grid, 2005)

Page 4: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Energizer…

• Please stand up…

Page 5: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Energizer…

Everybody please keep standing, if you...

• Think renewable energy is essential for a sustainable future?

• Think that Dutch energy policy has to be changed to achieve a sustainable future?

• Is your business prepared for a sustainable future?• Have you or any of your friends/family used some

form of renewable energy in the last year (PV, CHP, etc.)?

• Changed ALL of your light blubs to low energy?• Drive an electric vehicle (EV)?• Know your energy usage for the year?

Page 6: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Klik op het pictogram als u een afbeelding wilt toevoegenUSA Northeast blackout of 2003

Page 7: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

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Uncharted

Territory…

Page 8: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Klik op het pictogram als u een afbeelding wilt toevoegen

Empty

your c

up!

Page 9: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Who needs to drive this change?

Page 10: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Who needs to drive this change?

Page 11: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Who needs to drive this change?

Page 12: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Who needs to drive this change?

Page 13: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

The Virtuous Circle

Page 14: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Cool Science?

Page 15: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Sustainable Energy Challenges

=

Page 16: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Sustainable Energy Challenges

Page 17: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Sustainable Energy Challenges

??!

Page 18: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Wholesale Markets

Retail Market

Renewables Generation

Primary Fuels

Generation

Transmission

Customer Prosumer

Microgrids Efficient Technologie

s

Storage DSM

Info

rmat

ion

Fee

dbac

kT

rading

Primary Fuels

Generation

Customer Prosumer

Renewables Generation

Distribution

Page 19: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

“Charging a flat rate for electricity is like charging a flat price per pound for all items in a grocery store. What would happen if

everything that came out of the cow — steak, hamburger, suet, bones, and hide — were priced at the average cost per pound?”

– Alfred Kahn

Page 20: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

20

Competitive Benchmarking

A Way of Doing Design Science for Wicked Problems

Page 21: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

www.powertac.org

Page 22: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Power TAC Scenario

Page 23: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Power TAC 2014World Championship

5-6 May at AAMAS in Paris

Page 24: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

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Results: 2012 Pilot vs. 2013 Finals vs. 2014 FinalsNew entries matter!

Strategiesmatter!

Contextmatters!

Page 25: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Some Anecdotal Evidence for CB’s Efficacy

Page 26: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

JOIN IN!

Key Advantages

• Robust results• Leverage the abilities of top

research groups• Annually updated research

challenges (cf. Netflix)• Tournament vs. research mode

Annual Circle

Competitive Benchmarking

Page 27: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Infrastructure

Inter-firm

Research Streams

Energy Markets

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Society

Firm

Individual

Energy Finance and Trading

Revenue and Demand

Management

Energy Economics

Energy Policy

Prosumer Preferences

Prosumer Demand

Response

Energy Network Management

Energy Information

Systems

Page 28: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Smart Electricity Markets

Page 29: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Autonomous Retail Electricity Brokerage

Page 30: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Smart Charging

Individual Characteristics and

Preferences

EV Charging Scheduling

Energy Demand Reshaping

Peak Demand Reduction

Bottom-up Charging

Coordination

How should the EV charging be scheduled to mitigate peaks?

What are the EV customer’s preferences regarding EV charging?

How is the Smart Grid benefited from EV charging coordination?

• Research Questions

• Vision of the solution

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Page 31: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Results: Peak Demand Reduction

• Peak Demand Reshaping• Valley filling• This curve is steady state for

one customer with specific charging flexibility

• Overall price reduction• Direct result of peak reduction• Aggregate effect on all the

customers

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Page 32: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Agent-Coordinated Virtual Power Plants of Electric Vehicles I

Electric Vehicle Fleet Owner as Virtual Power Plant Aggregator• Offer mobility services to customers• Trade idle EV battery capacity on energy and reserve markets

Trade off customer mobility with balancing revenues

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Page 33: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Agent-Coordinated Virtual Power Plants of Electric Vehicles II

Research Type 1: Triple Bottom Line Impact of Large EV Fleets • Lower electricity prices for consumers at large (People).

• Decrease in CO2 emissions (Planet).

• Benefits for fleet owners (Profit).

Research Type 2: Carsharing Fleets with Ancillary Services• Increased revenues for carsharing operator• More balancing capacity available on the reserve

market• Balancing capacity is dynamically scalable with prices

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Page 34: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

How can we incentivize the users to charge their EVs in a way that is efficient for the grid considering the individual

differences in behavior?

Investigating Behavior of EV usersunder Variable Pricing

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What effect do the incentives have on producer and consumer surplus?

To what extent do users adjust their charging behavior in response to variable tariffs?

• Lack of studies on the behavior of EV users • No available data on EV users and their charging behavior

• Variable pricing is not yet offered by providers

Grid to

Vehicle

Vehicle to

Grid (tbd.)

Page 35: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

35

Future Work

• Do Competitive Benchmarking!

• Platform Extensions: Negotiation, Locational Marginal Pricing (LMP), E-Vehicle Models, …

• Behavioral

• Smart Charging and VPP

Page 36: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Erasmus Energy Forum 2014

Themes:• EU Policy and Markets• Energy Micro Grids & New Business Models• Financing Sustainable Energy

Business Day 19 June, 2014 @Nhow Rotterdam Hotel

• Presentations• Panel Discussions• Networking• Business Award• Exclusive Diner

Science Day20 June, 2014

@Erasmus University Rotterdam

• Paper and Poster Presentations

• Networking• Science Award

Page 37: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Klik op het pictogram als u een afbeelding wilt toevoegen

A 20TH CENTURY ECOSYSTEM

37

Extraction Transport Storage

Refinery Distribution Customer

Page 38: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

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Afbeelding invoegen

A 21TH CENTURY ECOSYSTEM

Extraction Transport Storage

Refinery Distribution Customer/Prosumer

Page 39: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

“If I had asked people what they wanted, they would have said faster horses.”- Henry Ford

Page 40: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

5th Avenue, New YorkApril, 1900

Page 41: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

5th Avenue, New YorkMarch, 1913

Page 42: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Wolf [email protected]

www.rsm.nl/energywww.powertac.org

Get in Touch!

@wolfketter

Page 43: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

Backup

Page 44: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

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Results: 2012 Pilot vs. 2013 Finals

Page 45: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

45

Results: 2012 Pilot vs. 2013 Finals

New entries matter!

Page 46: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

46

Results: 2012 Pilot vs. 2013 Finals

New entries matter!

Strategiesmatter!

Page 47: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

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Results: 2012 Pilot vs. 2013 Finals

New entries matter!

Strategiesmatter!

Contextmatters!

Page 48: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done
Page 49: Transforming Energy Business: A Global Sustainability Challenge Energie Nederland Conferentie, Den Haag, June 16, 2014 Wolf Ketter – @wolfketter Work done

SUNNY PORTALhttp://www.sma.de/de/news-infos/pv-leistung-in-deutschland.html