Challenges of the smart grid from a regulatory

Challenges of the smart grid from a regulatory perspective Dr. Annegret Groebel, Head of Department International Relations / Postal Regulation ICSG – Istanbul, 29/30 April 2015 www. bundesnetzagentur. de

Bundesnetzagentur: National German regulator n Independent higher federal authority in the scope of business of the Federal Ministry of Economics and Energy n Sector-specific authority tasked with promoting effective competition in 5 network industries by means of ex-ante regulation n n Electricity and Gas (since 2005), and n Railways (since 2006) n n Telecoms (incl. spectrum) and Post (since 1998), Electricity + gas grid development plan (since 2011) HQ in Bonn BNetz. A employs ar. 200 staff in energy regulation, up to 240 staff are being recruited for electricity grid expansion planning and (nationwide) permitting (2013) Overall headcount for all sectors: ar. 2900 staff, 196. 3 mio € taxfunded budget (2014), besides sector-specific legislation, there is one act containing all BNetz. A governance rules n BNetz. A is member of CEER/ACER, IRG/BEREC, ERG-P and IRG 2 Rail

Recap: The energy market value chain Potentially competitive market segments ►No ex-ante regulation, ex-post supervision by the Competition Authority Generation Wholesale trading Transport & distribution networks Supply Natural monopoly ►Regulation by BNetz. A 3

Network regulation in the energy market value chain Potentially competitive market segments ►No ex-ante regulation, ex-post supervision by the Competition Authority Generation Wholesale trading Wholesale markets ► REMIT (ex-post) Transport a. distribution networks Supply Natural monopoly ►Regulation − Separation of generation and supply activities from network operation (Unbundling) − Network access regulation, including tariff regulation (incentive regulation) Limited responsibility of Bundesnetzagentur in comparison with other national energy regulators − More recently, however, rapidly 4 4 growing fields of activity linked to the Energiewende: grid planning + permit. 4

Challenges along the supply chain Generation consumption Demand/consumpti Network (distribution, vertically) on generation Network (transport, horizontally) Transmission system changing Consumption and generation Distribution system 5

Changes in generation n Increasing share of renewables require integration n New forecasting models necessary to cope with volatility n New approaches for considering in balancing (task of market players), but also in considering in power system management (task of TSO and DSO) à More active role of the DSO à More responsibility/duty for balancing party 6

Energy mix in Germany a. share of renewables Gross electricity production in Germany in 2014 (610 TWh) 7

Grid integration of renewable energy sources Grid integration of renewable energies via n Expansion (main focus until now) n Network compatibility: n n frequency-dependent active power reduction n n Voltage support through provision of reactive power Ability to turn off or greater reduction of power in the event of network restrictions Market integration NB. German Ministry study on distribution network expansion needs published recently, see summary at: www. bmwi. de/EN/Service/publications, did=673608. html 8

Generation and consumption grow together n Household, commerce and industry produce and consume („prosume“) n Only a residual amount is requested to be delivered by network and by supplier n Complete solutions for housing estates n New approaches for business models of suppliers – they become more and more pro-active à Impact on forecasting of residual consumption and therefore on balancing and system management à Impact on unbundling à Impact on grid fee tarification 9

Consequences of the energy system change n Previously, only electricity volumes (k. Wh) were traded/sold n Now, in addition: n Power (k. W) n Saving as well as flexibility (Δ k. W) n Creation of new business models, elimination of old ones n Grid usage and supply are repealed in new business models (e. g. " Tenant current") n Customers who both produce and consumer (prosumer) n Aggregation of small-scale suppliers of both production and consumption (or a virtual mix of both) to reduce complexity n Discussion on new roles and responsibilities (e. g. aggregator) n Local needs at distribution level play an increasing role (provision of ancillary services such as reactive power but also exceeded reference values such as simultaneity or voltage range) n Increasingly flexible tariffs in the household customer segment 10

From a top-down to a bottom-up energy system TSO ------- DSO 11

Rationale for smart grids Current context: Radical energy system change n Change in generation patterns: n n More decentral (in terms of geography, voltage level) n Intermittent (dependent on weather), hence volatile n Based on DC-AC inverters n n Small-scale – less ‚professional‘ Not fully integrated into the market so far Changes on the consumption side: n n Stronger integration of loads into the market Consequences for the network: n More volatility n More complexity n Greater number of participants n Network expansion not up to the last k. Wh 12

BNetz. A position on smart grids (1) Need to distinguish: Network sphere Market sphere n Start from liberalisation and consequently unbundling n Tasks that can be provided by the market should be carried out by market players in a competition environment n If all tasks were assigned to the network: n Danger of a planned economy and over-regulation (financing via surcharges/ subsidies, incorrect incentives) n Less competition, customer has less choice, preferences are not taken into account fewer chances for newcomers and innovation 13

BNetz. A position on smart grids (2) Smart Grid: n Intelligent energy network infrastructure n Main purpose: Provision of capacity (k. W) for the market (transport task) n Instruments: Network expansion, management of network capacities, network operation Smart Market: n Intelligent coordination in the market n Main purpose: matching of volumes (k. Wh) n Instruments: Information exchange, use of ICT, transparent procedures, participation of many players 14

Definitions: Smart Grid / Smart Market Various definitions exist at national and international level. . . here comes BNetz. A’s d n Grid: The existing network and any conventional expansion are subsumed under the term "grid". n Smart Grid: The conventional electricity grid will become a smart grid by being upgraded with communication, metering, control, regulation and automation technology and IT components. Ultimately "smart" means that the system status can be recorded in "real time" and that means exist for controlling and regulating grids to enable full use to be made of existing grid capacity. n The smart market is the area outside the grid in which energy volumes or services derived from them are traded among market participants on the basis of the available grid capacity. Alongside producers, consumers and prosumers there may be many more service providers active in these markets in the future (e. g. energy efficiency service providers, aggregators, etc. ). 15 15

Smart Grid – Smart Market distinction (1) BNetz. A is separating „Smart Grid(s)“ from „Smart Market( and published its key findings in a Position paper of January 2012 (http: //www. bundesnetzagentur. de/) Is there a smart (in terms of “easy”, “quick and dirty”) distinction criterion? Smart Grid: Intelligent energy grid (but only the grid!) Criterion of distinction: energy transmission/distribution capacity (k. W) Smart Markets: Spheres of activity „outside“ the grids core business Criterion of distinction: amount of energy exchanged (k. Wh) 16

Smart Grid – Smart Market distinction (2) Examples: • Building local intelligent transformers for voltage control • Controlling voltage by using idle power (wattless power) • Balancing the grid (frequency) by buying balancing energy • Pumped-storage hydropower plant • Increase of demand due to cheap energy prices (e. g. electrical heat pump) • Energy efficiency enhancement for customers • Controlling feed-in of wind energy convertors / photovoltaic-devices • Controlling the charging process of electric vehicles • Metering data 17

Smart Grid – Smart Market distinction (3) Grid Smart Market 18 Existing energy network (capacity “KW”) Increase of transmission/distribution capacity for renewable energy needs by building new lines („more copper“) Upgrade of conventional grids by adding communication-, metering-, control- and automation technology + IT to enhance quality, efficiency and capacity of the grid Establishing technical prerequisites for markets (e. g. data hub) and establishing market rules beyond the grid intelligent Energy Markets (Trading of energy and energy-related services “k. Wh”)

Political / regulatory action (Smart) Grid n Existing grid n + intelligent grid control Smart Market 19 Intelligent markets n Increased energy trading and new services n Natural monopoly requires regulation n Prerequisite: Smart Meter and availability of consumption- and price data Liberalisation, deregulation and competition Do we want a more state-directed economy or a more market-driven economy?

Smart market Smart Generation Smart Consumption Conventional electricity grid + intelligent components = Smart Grid Smart Meters Smart Storage 20

Smart grids in reality: Transmission networks are already smart n Connection of field devices to control center via ICT n Remote control , monitoring, forecast , real-time modelling of flows. . . n Focus is on expansion Important: n Integration of generation, n Integration of downstream distribution network in terms of forecast, load flows and system services Activities of the regulator: n Development of an “energy information network” n Future provision of ancillary services 21

Smart grids at distribution network level (1) Some 900 electricity DSOs in Germany with individual challenges and 22 solutions

Smart grids at distribution network level (2) n >97% of renewable installations feed into distribution grids n Intelligent grid management measures: n new planning approaches n reinforced management (of both load and generation side) n Voltage support at LV and MV levels through intelligent equipment and control concepts n Adjustment protection / switching concepts (eg. Grounding) n Network expansion to enable bottom-up transport n Need to amend connection and access conditions for integrating renewable generation and adapting to a more volatile behavior of the market 23

Examples of Smart grids projects in Germany A non-exhaustive list: n “E-energy” projects (2007– 2012) by the Federal Ministries for Economy and Environment n “Networks for electricity supply of the future” (20102018) by the Federal Ministries for Economy, Environment and Research n EU 7 th Framework Programme for research: “web 2 energy” n Pellworm project (island in the North sea) n Projects by Statkraft, Enernoc and other aggregators / poolers / virtual plant operators n Voltage-regulated distribution transformers (r. Ont) 24

Do not extend networks to the last k. Wh n It make no economic sense to build an infrastructure for rare load peaks (caused by generation or by demand) n Other instruments must be able to deal with such peaks: n Well functioning forecasting n Enough amount of flexibly reacting units (either generators or consuming units or both) n System Operator becomes a manager of network capacity (not only infrastructure carrier/operator) à New role of DSO in the field of dispatching à More interaction between DSO and TSO à Regulatory question: What is „rare“ - in other words: To what extent is network extension preferred and in which instances is it worth to manage shortages in network of capacities (with restriction for the market!) 25

Challenges (1) More detailed data needed forecasting Restrictions due to data protection rules 26

Challenges (2) Reduced complexity when only dealing with residual demand (case of prosumers) Restrictions because of unbundling and financing infrastructure 27

Challenges (3) More dispatching by DSO Restrictions because of unbundling Restrictions in available technological and personal ressources and eventually restrictions for the market 28

Challenges (4) More and faster communication between all actors using ICT and standardised processes Restrictions in field of data protection Restrictions in field of (cyber)security Restrictions because of financing infrastructure 29

Smart meters Smart Meters are neither the „ultimate solution“ nor the essential Smart-Grid element… n Primary function: providing digital metering data n data is basis for a lot of products and services in the energy future n Smart Meter may likely be useful for the integration of renewable energy n But is data required for grid operation? (yes, but only sporadically) à Prime benefit of Smart Meters is for markets à Basic principle of efficiency: A Smart Meter should only obtained by those customers who are able and willing to use it (in addition be installed at critical points in the network) Distribution networks will not become a Smart Grid by adding Smart Meters à 30

Changing role of the DSO n DSOs will have greater interaction with energy consumers: n Potential for demand-side participation is increasing n n n New technology facilitates greater demand-side involvement In particular smart meters and smart grids, but also new demand control technologies Huge increase in the amount of data available to DSOs n n n Data is of use to DSOs in enhancing the efficiency with which they operate their networks At the same time, much of it will also be of potential interest to new third party service companies wanting to sell new services to electricity consumers New role for DSOs must be carefully assessed

Smart Markets: Examples flexible Demand Response, variable tariffs: price is indicator for availability of (renewable) energy and balance of production and demand n Shift of demand due to variable energy prices (demand response) n Energy savings through transparency of consumption n Local market places e. g. to sell “locally produced” energy n Energy efficiency services n Pooling of consumption and generation to enhance commercialisation (e. g. for balancing) n VPP n Storage / storage services n E-Mobility Smart Markets are not in the focus of regulation BNetz. A will support Smart Markets 32 32

Conclusions Initial understanding: n Introduce smart meters to allow for a more active participation of the consumer side n Implement full liberalisation and ensure communication between all players in the market (generators, traders, suppliers and consumers), between the market and the network, and between network operators n However, with the „Energiewende“ and generally the need for flexibility as a consequence of integrating volatile RES, smart grids and in particular smart markets play an important role in ensuring that the change of the energy system will sucessfully be realized and consumers benefit both in terms of choice and prices. 33

Questions? Thank You for Your Attention 34

Challenges of the smart grid from a regulatory perspective Workshop Dr. Annegret Groebel, Head of Department International Relations / Postal Regulation ICSG – Istanbul, 29/30 April 2015 www. bundesnetzagentur. de

Political / regulatory action (Smart) Grid n Existing grid n + intelligent grid control Smart Market Intelligent markets n Increased energy trading and new services n Natural monopoly requires regulation n Prerequisite: Smart Meter and availability of consumption- and price data Liberalisation, deregulation and competition What is the role of the regulator? 36 How to define the role of DSOs?

ACER Bridge to 2025 – Key objectives The Bridge Recommendation as published in Sept. 2014 (http: //www. acer. europa. eu/official_documents/) reflects regulators’ ambition to achieve five key objectives for the Internal Energy Market (IEM) by 2025: 37

ACER Bridge to 2025 – Vision

Energy market interactions - Electricity system n Three interrelated challenges n Overlaps and inter-relationships are more important than standalone issues n These issues address how the electricity system will best meet the needs of future customers 1. Flexibility Wholesale DSR Customers 2. Smarter 3. Further demand side competition Retail and grids

Smart market Smart Generation Smart Consumption Conventional electricity grid + intelligent components = Smart Grid Smart Meters Smart Storage 40

Smart Grid – Smart Market / Regulator‘s task n Defining interfaces between Smart Grid and Smart Market: n non-discriminatory n interoperable n non-proprietary n Defining mass-market-compatible standard procedures to facilitate easy switching (GPKE, Ge. Li Gas, WIM etc. ) n Enforce unbundling n Adjust balancing procedures to allow profitable new business models n Modification of prequalification requirements e. g. for balancing energy 41

Smart grid definition (1) n In essence, the term smart grid refers to the upgraded electricity network of the 21 st century, n for which information and communication technology is of paramount importance (e. g. computer-based remote control, monitoring and processing; system automation; two-way digital communications between supplier and consumer; intelligent metering; etc. ) n in order to achieve efficiency, sustainability, quality, reliability, safety and security (of the grid) as well as to manage distributed generation. n In other words: a smart grid is a grid using ICT to operate smoothly and effectively. While this was always the case for transmission networks, distribution networks now also become smart. With this a new role of the DSO needs to be considered. n Here we leave the area of smart grid and go further into the design of a smart market where services are exchanged 42

Smart grid definition (2) n Smart grids are energy networks that can automatically monitor energy flows and adjust to changes in energy supply and demand accordingly. When coupled with smart metering systems, smart grids reach consumers and suppliers by providing information on real -time consumption. With smart meters, consumers can adapt – in time and volume - their energy usage to different energy prices throughout the day, saving money on their energy bills by consuming more energy in lower price periods. n Smart grids can also help to better integrate renewable energy. While the sun doesn't shine all the time and the wind doesn't always blow, combining information on energy demand with weather forecasts can allow grid operators to better plan the integration of renewable energy into the grid and balance their networks. Smart grids also open up the possibility for consumers who produce their own energy to respond to prices and sell excess to the grid. n European Commission: (http: //ec. europa. eu/energy/en/topics/markets-andconsumers/smart-grids-and-meters) 43

Smart grid definition (3) 44

Smart grid definition (4) 45

Examples of Smart grids projects in Germany A non-exhaustive list: n “E-energy” projects (2007– 2012) by the Federal Ministries for Economy and Environment n “Networks for electricity supply of the future” (20102018) by the Federal Ministries for Economy, Environment and Research n EU 7 th Framework Programme for research: “web 2 energy” n Pellworm project (island in the North sea) n Projects by Statkraft, Enernoc and other aggregators / poolers / virtual plant operators n Voltage-regulated distribution transformers (r. Ont) 46

E-Energy project n Projects funded in 2007– 2012 by the Federal Ministries for Economy and Environment www. e-energy. de n Objective: An ICT- based energy system of the future n Funding priority in the context of technology policy of the Federal Government n The term " E-Energy" (in analogy to "e-commerce" or "e-government“) refers to an extensive use of information and communication technologies for monitoring and control of the entire energy supply system n E-Energy started in 2007 with a technology competition on the following three topics:

The Internet of energy n Electronic marketplace n new market roles and services ICT-based business and legal transactions between market participants ICT-based operation of technology n n largely automated monitoring , control and regulation of the technical system Online linking of marketplace and technology operation n digital interaction of business and technology operations

Funding of E-Energy: funding and research n Subsidies and beneficiaries’ own resources totalling 140 m euro n Accompanying research to ensure a lasting programme effect

Project „Future-proof electricity networks“ (1) n Federal Ministry of Economics started support framework "Future-proof electricity networks“ in 2010 under the 6 th Energy Research Programme n Relevant interaction with other important funding priorities of the Energy Research Programme n Federal Ministries of Economics, Environment and Research started "Sustainable power grids" in 2013 as a joint funding initiative under the Energy Research Programme n August 2014: 83 projects with a total funding of 157 m euro selected n Projects address aspects of basic research, education and training of young scientists and engineers as well as network-specific requirements of PV and wind turbines 50

Project „Future-proof electricity networks“ (2) n Components and equipment for transmission and distribution networks n Network management, modelling, design and monitoring n Demonstration activities n Network planning, system behavior and system security n Research and innovation in the grid area are discussed in the platform "Energy networks" of the Federal Ministry of Economics n Website: http: //forschung-stromnetze. info 51

Activities in the „model regions“ n Development and testing of hard- and software for an Internet of Energy under real operating conditions n Improving knowledge about interoperability , security and privacy n Testing of new value chains and business processes n Analysis of market potential and increase consumer acceptance n Identification of needs for an improvement of framework conditions

Model region Cuxhaven (1) www. e-energy. de/de/etelligence. php www. iosb. fraunhofer. de/servlet/is/28393/Ene rgy%20 systems_e. Telligence. pdf? command=do wnload. Content&filename=Energy%20 systems_ e. Telligence. pdf

Model region Cuxhaven (2) n Intelligence for Energy , Markets and Networks n Feature: n n Objective: n n Rural model region with low power density and a high proportion of renewable energy To develop a control system to balance the volatility of wind energy Instruments: n n Standardized plug -and-play networking; n n Regional electricity portal ; Online visualisation of electricity consumption Actors: n EWE AG, OFFIS e. V , energy & meteo systems Gmb. H, BTC AG, Fraunhofer Energy Alliance

Model region Rhine-Ruhr (1)

Model region Rhine-Ruhr (2) n Development and demonstration of locally networked energy systems to the E-Energy marketplace of the future n Feature: n n Objective: n n To develop an intelligent consumption control system and a timely metering and provision of consumption data; Optimising operational management in decentralised distribution networks Instruments: n n Includes rural and urban areas with two different distribution networks in the Rhine-Ruhr region with particularly heterogeneous supply density Rollout of smart meters and ICT gateway Actors : n RWE Energy, Siemens, ef. ruhr, Miele, Stadtwerke Krefeld, Prosyst Software (www. e-energy. de/de/e-dema. php)

Model region „Meregio“ (Baden)

Model region „Meregio“ (Karlsruhe/Stuttgart) n Feature: n n Using ICT to minimise CO 2 emissions and climate change in the Karlsruhe/Stuttgart Objective: n n Development of a "Minimum emission" certification n n Development of an E-Energy market for the coordination of energy supply and demand Generate price signals to incentivise customers to shift their consumption in an economic manner Instruments: n n Provision of 1000 smart meters to customers Actors: n En. BW, ABB, IBM Germany, SAP, System Plan, Technical University of Karlsruhe www. e-energy. de/de/meregio. php

Model region Rhine-Neckar (Mannheim)

Model region Rhine-Neckar (Mannheim) n Feature: n n Objective: n n Urban conurbation with a high density and a high proportion of renewable and decentralised energy To develop an open ‘broadband powerline’ platform allowing to feed in renewable energies into the existing distribution network in line with consumption needs (Micro grid) Instruments: n n n Broadband powerline infrastructure ‘Energy butler’ providing real-time information on consumption, prices and tariffs Actors: n MVV Energie, IBM Germany, Power PLUS Communications, Papendorf Software Engineering, Stadtwerke Dresden, University Duisburg-Essen www. e-energy. de/de/modellstadt_mannheim. php

Model region „Renewable Harz“ (1)

Model region „Renewable Harz“ (2) n Feature: n n Mountain district Harz with a variety not just renewable energy (eg wind farm, pumped storage power plant and photovoltaic systems, biogas plants, etc) Objective: n n n Ensure grid stability at high volatility of renewable energy Testing the integration of electric vehicles as electric storage Instruments: n n n Online resource for everyone involved (incl. DSO) allowing full regional supply "Bidirectional Energy Management Interface" (BEMIs), an instrument for controlling home appliances retail Actors: n Regenerativ Kraftwerk Harz, E. ON Netz, Avacon, Siemens, in. power, ISET, Vattenfall Europe Transmission www. e-energy. de/de/regmodharz. php

Model region Aachen (1)

Model region Aachen (2) n Objective: n n Development of modular smart meters for an energy center in the household; n n Increase the self-regulating ability of the power system Complete market model for a more decentralised energy market and an automated transaction platform for trading Instruments: n n Modular, interoperable energy meter as a gateway to the customer. Actors: n Utilicount, Soptim, Research Institute for Operations Management at RWTH Aachen, PSI Busing & Buchwald, Kellendonk Elektronik, Stadtwerke Aachen AG www. e-energy. de/de/smart_watts. php

Smart country project in the Trier region n Trier region in the Eifel mountains, with a projected 100% share of renewables by 2030 n Objective: n rely on local resources such as biomass and geothermal, solar and wind. n Energy efficiency solutions close to the citizen n Generate investment and employment effects for a rural area Website: www. rwe. com/web/cms/de/683556/smartcountry/projektpartner/

Poly. Energy. Net project (1) n Objectives: n Explore the feasibility of resilient local networks n Robust network operation that can respond to both the volatility of supply decentralised renewable energy sources as well as to unforeseen events to cyber attacks n Creation and use of an appropriate information making it possible to detect and fix through appropriate measures critical network conditions n In addition, supply shall be maintained widely as possible in an emergency mode and parts of the local network are placed in quarantine until re-integration into the overall system is possible. n Formation of autonomous sub-networks (“holons”) which may supply themselves in case of a fault in the lowvoltage network through gas-fired cogeneration units, a hot water tank and solar power storage http: //forschung-stromnetze. info/projekte/widerstandsfaehige-netze/ 66

Poly. Energy. Net project (2) Distribution grid Fiber network Gas network Heat network Electricity network Control centre Source: http: //forschung-stromnetze. info/projekte/widerstandsfaehige-netze/ 67

Poly. Energy. Net project (3) Poly. Energy. Net – resilient poly-grids for a secure energy supply – performs research on highly resistant local grids with multiple forms of energy, develops and implements demonstrators, and plans the pilot phase. Beyond the electricity grid as the “lead grid, ” the components include heat and gas grids for all the different generators, storage, and consumers. An ICT system supports the monitoring and management of the overall system, which is called a poly-grid. Such grids are characterized by robust operations that can respond to the fluctuations in supply from decentralized, renewable energy sources as well as to unforeseen events including hacker attacks. The aim of the project is to create a suitable data infrastructure that will permit emergency operations - even under critical grid conditions - to be maintained within a local power grid or route or, at least, to quarantine some section until re-integration to the full grid system becomes possible. The focus of Poly. Energy. Net is to develop a holistic system that is tolerant of malfunctions in individual sub-sections that function independently from one another. Real time data is captured and evaluated in each subsystem. In this way, external attacks or critical conditions within the poly-grid can be rapidly identified, sealed off, and corrected in just a short time. 68

EU 7 th Framework programme for research Web 2 energy project n Objective: n n n Development and testing of the Web 2 energy communications system as a standardised end-to-end solution from any and all market actors in the distribution network Demonstrating its benefits in field trials Intelligent distribution networks to meet three requirements: n Involvement of customers, n active networks and n self-healing through automation. n Sharing knowledge, especially with ongoing standardization work in the International Electrotechnical Commission (IEC) n Enable its commercial use in the field of distribution networks for power supply https: //www. web 2 energy. com/en/ 69

EU 8 th Framework programme for research n EU research funding under the energy part of Horizon 2020 n The Intelligent Energy–Europe (IEE) programme supports different types of actions furthering the EU's efforts towards clean and sustainable energy. n The main areas covered are energy efficiency, new and renewable resources and energy in transport as well as integrated initiatives which combine several of these or address more than one economic sector at the same time. n Energy efficiency and the rational use of energy (SAVE) n New and renewable resources (ALTENER) n Energy in transport (STEER) n Integrated initiatives http: //ec. europa. eu/energy/intelligent/about/fundingareas 70

Smart Grid Projekt on the Pellworm island n Apply efficient storage systems, using a combination of multiple technologies n Project designed to gain insight into how storage can be combined with renewable energy n Pellworm island seeks to significantly reduce the energy consumption from the mainland www. smartregion-pellworm. de/innovationtechnologie. html 71

Use swarm concepts to reduce complexity 72

Virtual power plant by Statkraft (1) n The virtual power plant is a solution to make renewable energy controllable and future-proof n A virtual power plant uses the internet to control several smaller generators and adjusts the deliveries according to demand. n More than 1, 000 small-scale producers (wind, solar, biomass as well as hydropower) are attached to Statkraft’s virtual power plant n The geographic distribution, and thereby various weather conditions, means that there always wind or solar energy plants generating energy. www. statkraft. com/media/news/News-archive/2014/Germanys-largest-power 73 plant/

Virtual power plant by Statkraft (2) Source: Statkraft 74

Voltage-regulated distribution transformers (1) 75

Voltage-regulated distribution transformers (2) DSOs need to ensure a stable supply voltage in LV and at the same time integrate an increasing amount of renewable energy. Within the standardised LV voltage band of ± 10 percent of the rated voltage, a maximum voltage rise of 3% is available to renewable energies. The rest is reserved for MV, voltage drops, and setting imprecisions. DSOs are forced to expand their network, even though the capacities of their 76 operating equipment is far from exhausted.

Voltage-regulated distribution transformers (3) A V-RDT gets to the heart of the problem – maintaining the voltage band – by dynamically adapting the voltage. It decouples the voltages of low voltage and medium voltage grid. This results in an 11% rather than a 3% voltage rise being available in the LV grid for feed-in from renewable energies. This usually eliminates the need for expensive grid expansion, and in the few situations where this is not the case, the network operators 77 still