Energy - Allianz Global Corporate & Specialty

IN
CONCLUSION
Power grids at their peak
Guest commentary by Johannes Kindler, Vice Chairman, German Federal Network Agency
“There is a major need for modernization and expansion
which will require close collaboration between countries
and massive investment in their power grids.”
Johannes Kindler, Vice Chairman, German Federal Network Agency
JOHANNES KINDLER
The Federal Network
Agency for Electricity,
Gas, Telecommunications,
Post and Railway is a
separate higher federal
authority within the
scope of business of the
German Federal Ministry
of Economics and Technology,
and has its headquarters
in Bonn. On July
13th 2005 the Regulatory
Authority for Telecommunications
and
Posts which superseded
the Federal Ministry of
Posts and Telecommunications
(BMPT) and the
Federal Office for Posts
and Telecommunications
(BAPT), was renamed
Federal Network
Agency. Moreover, it acts
as the root certification
authority as provided for
by the Electronic Signatures
Act. Johannes
Kindler is Vice President
of the Federal Network
Agency for Electricity,
Gas, Telecommunications,
Post and Railway.
34 The Last Word
Power grids in Germany and Europe are engaged in a
high-voltage discussion – in more ways than one. The
demand for electricity has risen only slightly in recent
years, but there are huge challenges to maintain the
supply which need to be dealt with in order for the European
community to achieve its energy and climate
goals. The European Commission’s new energy infrastructure
program makes this abundantly clear.
Statistics show that Germany has the most stable power
grid in Europe, perhaps in the whole world. However,
when it comes to supplying electricity, the EU member
states do not act alone, but rather as a continent-wide
group. One of the main challenges here is integrating
the various power infrastructures. They differ significantly
in terms of age, dependability and their basic
technologies. As a result, there is a major need for modernization
and expansion which will require close collaboration
between countries and massive investment in
their power grids.
In addition, there is the issue of integrating renew able
energies. In the future, more and more regenera tive
energy will be brought on line. The traditional transmission
system is still based on a structure in which large
and medium-sized power plants send their electricity
over relatively short distances to the consumer. For
wind energy in Germany the main concentration is off
shore in the north where electricity needs to be carried a
much longer distance to the consumer. Wind and especially
photovoltaic power also come from volatile
sources and are much more difficult to rely on: some -
times they generate a lot, and sometimes very little.
Nowadays wind is somewhat predictable. It is much
harder to predict and steer sunshine. Therefore, it is
particularly tricky to bring electricity from these sources
on line. Grids need to become much “smarter” to handle
these enormous technical challenges.
From my point of view, the risk of increasing power
grid instability needs to be put into clear focus. For
example, in heavy winds, the power brought on line
can exceed the load the grids can handle. What does
that mean? The ideal frequency for electricity
transmission is 50 Hz, with a very small margin for
fluctuation. A large deviation from this ideal frequency
can interrupt the power supply. In order to avoid
overloading, it is necessary to expand the power grids,
which often meets with a lot of local resistance.
Experience shows that – regardless of the need to further
simplify the approval process – an attempt has to
be made to increase acceptance for expanding the grid
infrastructure through more education and new forms
of dialogue with the population. This does make a big
difference.
In the interest of power grid sustainability, it is also essential
for operators to work more closely than in the
past with the consumers in order to make use of their
vast potential. The most energy-intensive industries
are willing in principle to provide capacity through
flexible production to offset fluctuations in the wind,
or when there is a potential disruption to supply due to
a drop in power to temporarily shut down production
immediately. My office works closely with Allianz in
this area to estimate probable financial losses and
develop possible insurance solutions. The very posi -
tive progress of these discussions is a good example of
how government and the private sector can work as
partners on solutions for major social challenges.
By providing constructive information to insured companies
about their risks and consequences, insur ers
for their part can motivate power producers, grid operators
and consumers to do everything they can to
maintain one of the most important goods in a
civilized society, a dependable supply of electricity.
IN
CONCLUSION
2011
Calendar
Date/Location Event Information
May 1–5 RIMS - 2011 Annual Conference www.rims.org
Vancouver, Canada Risk and Insurance Management Society (RIMS)
J une 5–8 PRIMA 2011 32th Annual Conference www.primacentral.org
Portland, OR , USA Public Risk Management Association (PRIMA)
J UNE 6–8 AIRMIC - Annual Conference 2011 "Embracing new horizons" www.airmic.com
Bournemouth, UK Association of Insurance and Risk Managers (AIRMIC)
J UNE 19 – 22 IIS - 47th Annual Seminar www.iisonline.org
Toronto, Canada International Insurance Society (IIS)
J UNE 19–21 ALARM - 19th Annual Conference www.alarm-uk.org
Telford, UK Association of Local Authority Risk Managers (ALARM)
JULY 31–August 3 APRIA - Annual Conference 2011 www.apria.org
Tokyo, Japan Asia-Pacific Risk and Insurance Association
September 6–8 DVS Symposion 2011 www.dvs-schutzverband.de
Munich, Germany Deutscher Versicherungs-Schutzverband
September 10–15 RVS Monte Carlo 2011 www.rvs-monte-carlo.com
Monte Carlo, Monaco Rendez-Vous de Septembre
September 18–21 RIMS Canada 2011 www.rimscanada.org
Ottawa, Canada Risk and Insurance Management Society
September 18–21 IUMI – 2011 Conference www.iumi.com
Paris, France International Union of Marine Insurance
O c tober 2–5 FERMA Risk Management Forum 2011 www.ferma.eu
Stockholm, Sweden Federation of European Risk Management Associations
O c tober 24–25 AGCS Expert Days "Digital Environments" www.agcs.allianz.com
Munich, Germany Allianz Global Corporate & Specialty
N o vember 13–17 IRMI – 2011 Construction Risk Conference www.irmi.com
San Diego, CA, USA International Risk Management Institute (IRMI)
N o vember 20–23 RMIA – 8th Annual National Conference www.rmia.org.au
Melbourne, Australia Risk Management Institution of Australasia (RMIA)
December 4–7 SRA Annual Meeting www.sra.org
Charleston, SC, USA Society for Risk Analysts
Calendar 35