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Thesis - Teknisk Design

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Oskar Karlsson, Petter PolsonMaster <strong>Thesis</strong> 2011 at Chalmers University of TechnologyTheoryregion and what the main drivers are for the smart griddevelopment.Technology developmentStorage is said to be the biggest technological challengefor smart grid development and new and better solutionfor energy storage is needed in the future grid to level thesupply from intermittent sources. The level of integrationof renewable capacity depends on storage capabilities.Electricity storage will therefore play an important part inachieving self-sustaining areas on local or regional level.Another application for improved energy storage is withinthe demand response system, where securing the supplyof electricity to the consumers is a crucial issue. Differentstorage technologies are needed for different applicationsand options to consider are batteries, pump power plants,flywheels and super-condensers (Larsson & Ståhl, 2011).Market developmentA smart grid development will lead to new market opportunitiesand the possibility for new actors to enter theenergy sector. Examples of new actors are the aggregatorsthat collect small scale power production and sell it onthe existing energy market and the “prosumer” that bothgenerates and consumes electricity.One area that is important to develop is a demandresponse system that shifts and balances the load anddecreases peak demand in the energy system. Demandresponse is one of the enabler of large scale expansionof intermittent power production and will need smartmetering infrastructure, distribution management andnew price signals, as well as smart customer products andinterfaces (Larsson & Ståhl, 2011).Setting new standardsSmart grid technology will bring together many industrysectors that previously have not worked together and consequentlycombine different products into one solution.At the same time, large investments are necessary tospeed up the smart grid development. This calls for goodinteroperability between companies and products todecreases the risks with the investments. Standards aretherefore crucial for a variety of products and services inthe smart grid field (International Energy agency, 2011),(International Electrotechnical Commission, 2010).2.1.4 The road forwardCommercial scale demonstration projects are neededto capture real-world data in order to find out how thetechnology works with the market and regulation systems,as well as with the end-user. Large scale demonstrationswill provide shared learning among the participatingactors, decreased risk when investing in new technology,and best practice methods for smart grid deployment.Since the road to a smart grid is unclear and can takedifferent turns, and a lot of the development is new andgroundbreaking, there is a need for different actors tomeet and discuss problems and solutions. An exhibitionon the topic can provide a meeting platform and therebyfacilitate smart grid development.Prosumers andVirtual PowerPlantsConsumers can also generate electricityand use it, store it or sell it to the grid andthus acting as so called “prosumers”. Many smallelectricity generators can get together to produceelectricity as a virtual power plant. A virtual utilityis a cluster of power plants and storage facilitiescontrolled by one Energy Management System.Coming together in a virtual powerplant can be a way for small producersto get market shares.9

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