Smart Grid - Clean Energy Expo

Smart Grid - Clean Energy Expo

Decentralized Energy and the Smart

GridClean Energy – the Future

Thailand Sept. 12, 2012

Sridhar Samudrala – Asia - Director

World Alliance for Decentralized Energy (WADE)

Edinburgh, Washington, Canada, China, India, Thailand

DE as a Share of

TtlNti Total National lPower Generation

World Average is 9% - Where are you?








Source: IEA, CHP: Evaluating the Benefits of Greater Global Investment (2011).


Energy Market

• Philippines most developed market -- capacity of 5,500500

MW. Govt Plans to double capacity by 2030.

• Thailand -- second largest market -- 1, 850 MW of total

t installed RE capacity - Plans to double existing capacity

by 2030.

• Indonesia - third largest - 1,800

MW. Indonesian govt.

wants to increase capacity tenfold by 2020.

• Malaysia -- 520 MW - Increase 20 times by 2030

• Vietnam -- 300 MW -- Increase 50-fold by 2030

• Singapore limited increase given its limited resources.

Smart/Intelligent Grid

• The Electric Power Research Institute (EPRI) has estimated the cost of building a

Smart Grid at over $165 billion over the next two decades – approximately $8 billion

per year

• Global l Electricity it Sector Investment t over next 3 decades d i.e, 2020-30

• US $ 10 Trillion: 60% of total energy investment

• Three(3) times higher than investment in the electricity sector during past 30 years

• "We're sitting on an aged, old infrastructure t while emerging countries like India and

China are moving to the next generation of networks and generation sources." --Brad

Gammons, vice president, IBM global energy and utilities industry group

• US $ 5.5 Trillion on T&D

-- Approximately 30% on Transmission and rest to Distribution

(smart Grid)

• Planned and proposed deployments of smart meters in United States

• 150+ million meters by 2020

• 45% of U.S. households

Top Ten Smart Grid Federal Stimulus

Investments by Country, 2010

Source: Reports and articles,

research and analysis

In U.S. D. Million

• China tops the development and investment made in smart grid

followed by US. US had federal investments of $7.1 billion for the year

2010 for development of smart grids

• However China’s total investment in electricity generation for 2010

had been $48 billion whereas that on smart grids had been $56 billion

indicating that government spending in smart grids exceeded the

investments in electricity generation

• Renewable energy continued to drive venture capital investment

into the power sector of US

• Around $1.8 billion in venture capital had been invested in the Smart

Grid sector between 2005 and June 2010 in US

Existing Grid

• Centralized Grid

• Only 1/3 of fuel energy

converted to electricity

Central Generation

Transmission System

• Waste heat is not recovered (over

S b t ti

30% lost)


• Up to 8% is lost along

transmission lines

Distribution Network

• US, 20% gen capacity exists to

meet peak demand only (i.e. 5%

of time at 4 X cost)

• Distribution – up to 45% losses

in developing countries

Customer Loads

L1 L2 L1




Ln Lm Ln

Ln Lm Ln





Smart Grid - Definitions

Smart Grid -umbrella term -combination of technologies, approaches, and


• Informed, involved, and active consumers - demand response and distributed energy


• Many distributed energy resources with plug-and-play convenience focus on


• Mature, well-integrated wholesale markets, growth of new electricity markets for


• Power quality is a priority with a variety of quality/price options - rapid resolution of


• Greatly expanded data acquisition of grid parameters - focus on prevention,

minimizing impact to consumers”

• Automatically detects and responds to problems - focus on prevention minimizing

Automatically detects and responds to problems focus on prevention, minimizing

impact to consumer”

Power Sector in US

US map showing deregulation of energy market

• Deregulated electricity facilitates energy consumers to buy their

energy from multiple retail electric providers instead of just one

monopoly company

• The Public Utility Regulatory Policies Act passed in 1978 laid the

groundwork for deregulation and competition by opening

wholesale power markets to nonutility producers of electricity

Energy Policy Act of 1992, lately implemented by Federal Energy

Regulatory Commission (FERC) in 1996 also supported

deregulation, promoting greater competition to bulk power


• US energy market moved from regulations that set rates for

electricity to an increasingly deregulated industry in which prices

are determined by competitive markets hence leveling out the

power rates

• It also proved beneficial in creating job opportunities apart from

improvement in service quality and reliability

• However, deregulation also witnessed merging of investor-owned

electric utilities (IOUs) in record number because of competitive

pressure which in turn resulted in increased operational efficiency

Today’s Grid

Future Grid



Smart Grid’s Building Blocks

• Advanced Metering -- Smart Meters (single phase and poly-phasephase meters), 2-way

communications, interface to enterprise applications

• Transmission/Distribution Automation -- Fault Detection, Isolation, Restoration,

Integrated Volt/VAR management, including switch/cap controllers, switched

capacitors & voltage regulator

• Substation Automation -- Substation controller and transformer monitoring and


• Distribution Operations -- Demand Side Management and Outage Management

software & interface to existing applications, and control center optimization

• Utility Enterprise Applications -- Electric, Gas & Telecommunications utility

geospatial based applications, Demand Side Management application, and advanced

analytics & visualization

• Customer sector - Smart metering, Critical Peak Pricing, smart energy management


Germany: upgrade grid

• Germany -- positive impact on the European smart grid landscape. Berlin unveiled

its ambitious energy strategy. Build an energy portfolio based on renewables and

nuclear – and without NUCLEAR and natural gas- it also includes an action plan

for a revamped infrastructure.

• Germany 3500 km of new high-voltage power lines - Create a platform between

public and private actors, to increase reactivity towards possible planning


• Create incentives to facilitate the construction of new energy facilities

• Create awareness about the important role a new grid plays in the green energy


• Getting to a binding ten-year agreement with the network operators for the

modernisation of the network

• If decisions over large infrastructure are not taken by the local and regional

authorities within four years, a referendum could be organised to get the final



Demand-side management

• 2008 - EnBW and its subsidiary Yello Strom have introduced

consumer energy portals aimed at allowing users to view and

manage their consumption more effectively. 1/3 customers cut

their electricity consumption by more than 10%.

• Vattenfall’s Berlin pilot of 10,000 homes centres on providing

meter readings, historic energy consumption data and forecast

usage through a variety of display channels (TV, iPod Touch,

iPhone). Usage can be displayed by day, week, month or year.

• The E-Energy Model City of Mannheim (MoMA)

demonstration project is testing an automated solution for

home energy management. The so-called Energy Butler can

turn on electrical appliances automatically when energy is

cheapest (in the off-peak period, or when there is plenty of

renewable energy available).

SMART Meter: Tangible


UK government estimates to save

GBP 2.5 to 3.6 billion in 20 years

from smart meter installation

Households save up to GBP 80 off

their electricity bills in a pilot in


People using smart meters

reduced their electricity usage by

up to 21% in an Epson program.

Existing and Future Grids


Existing Transmission and

Distribution System

Future Smart/Intelligent Grid Systems





Integration of


Reliability of

Limited ability to address problem of high

transmission and distribution losses.

Limited control for distribution companies

Reactive approach - Utilities tend to

purchase costly power during peak hours

Prevents disruptions, minimizes impact, more customer

participation - better energy management and energy

accounting, leakage can be detected quickly and prevented

Grid technology enable utilities to reduce purchase of costly

power and maintain grid discipline

Grids designed for one way flow -- Clients Allows individuals to generate onsite power and feed into grid

who have capacity to inject power into grid without raising reverse flow reliability and safety issues. Best

are limited by utilities and regulations for DG and renewable

Supply Post breakdown repair Self healing. Power quality a priority

Little customer participation - due to price


visibility and difficulty of determining

Benefits price Customers can optimize the monthly bill



Quality of

Still an issue -- high cost for placing

transmission and distribution lines

Micro Grids and efficient use of available power supply will

pave the way for increasing rural outreach without large

investment in T&D

Energy’s Future Vision

Bio fuels



Distributed Utility


Fossil Fuels




Zero Energy Home

Barriers & Challenges

• No standardization of DE

• Regulatory restrictions in the implementation of energy plants in

commercial complexes and buildings based on zoning

• Tariff setting does not reflect the cost of fuel

• Net metering and Connection charges

• Difficulties in funding (investors and lenders) the projects

• Lack of centralised organisation providing coordination,

information, training or services

• Lack of awareness and knowledge on climate change issues

Dairy Farm –3‐5 hrs/day

3000 Ltr/Day

Animal lWaste



85 C Hot Water

for Process

Pasturezation Machine


& Cleaning

65-75 C






300 C output

Elec. 12/25 kW

Ice Bank



Packaging – Milk, Cream

and other products


Compost for Sale


• Cost of Wood Fired Boiler/Diesel l Generator Combination is $ 394,600.

• 1000 Liters/hr pasteurization plant with a wood fired boiler and Dis Gen set. Wood fired boiler

costs $4500 – Fuel ($500/mo $6000/Yr). A 30 Kw dis gen. set ($12,000 -it consumes 7

liter/hr $28/day (10,080/yr). Assume the pasteurization plant would operate 3-4 hrs per day.

• Over 20 years cost : life span of the diesel generator and wood fired boiler are approximately

7-10 years ($16,500 X 2 = $33,000). (Diesel 20 yrs X $10,080 = $201,600, wood 20 yrs X

$6,000 = $120,000). Maintenance is $ 2000/yr = $ 40,000. Total cost is $ $394,600.

• Cost of Digester and Capstone C30 Micro-turbine is $ 207,000

• The Capstone C30 Micro turbine and digester cost is approximately (Capstone -$61,000, Gas

cleaning equip -$10,000, Digester -$15,000,). The C30 -26 Kw of electricity and exhaust

heat is used for pasteurization milk to temperature of 85C.

• Over 20 years costs: life span of the Micro turbine is 10 yrs (2 X 61,000 = $ 122,000).

Digester life is 30 years ($ 15,000). Maintenance $ 3000/yr = $ 60,000. This total is $ 207,000.

Local, Mini- and Micro-

Gid Grids

• Distributed Generation can offset some of the losses and eventually costs –

can save up to 8-12 % per year that equals to about $ 26 per month Avg. bill.

This is not much but adds to the whole.

• Renewable (solar, wind and micro hydro play a vital role)

• Local distribution systems are connected to the regional networks, and

through that to the national electric backbone. Power from distributed

energy facilities flows to and from customers and into the regional network,

depending on supply and demand conditions.

• Real-time monitoring and information exchange still not available - this will

enable markets to process transactions instantaneously and on a national


• Customers do not have the ability to tailor electricity supplies to suit their

individual needs for power including costs environmental impacts

individual needs for power, including costs, environmental impacts

Cost & Savings

• Savings of 10-15% 15% - distribution losses. Save $500 billion in investments in the next

20 years by offsetting construction of new infrastructure that would otherwise be

needed to meet load growth in Asia. NEGA WATTS

• New technology automatically lower the settings on home appliances, triggered by

signals sent by utility companies over the Grid. ”consumers are willing to have

utilities remotely dial down the appliances to lessen the load on the grid and reduce


• Remote gateway device use - powered by systems integration software- enable

energy companies and customer homes to communicate with one another. The

device relies on broadband Internet connection to receive pricing information from

the utility, which is transmitted wirelessly to a smart meter.

• One impediment to widespread Smart Grid usage is cost. To implement the

technology in a single home can cost a utility company between $500 and $1,000 in

USA. Will Customers Pay???

Clean power sources such as wind and solar still technical challenges -- can be better

incorporated with upgraded equipment.

SUMMARY - Strategies to make a smarter

grids an attainable goal

Smart Grid/DE is a win-win i for the power sector;

• DE combined with Smart Grid has great potential to reduce CO2 emissions

and reduce overall costs of supplying power;

• DE/Smart Grid can provide energy access for those in rural areas and

developing countries;

• New fuels like Hydrogen will play a major role;

• Develop New Regional Transmission Plans to Bring Renewable Power to


• Create New Incentives for Investments in Smart Grid Technologies.

Smart/Intelligent Grid is the

Local/Global l Solution!




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