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Perspective on the Smart Grid Campus da FEUP Rua Dr. Roberto Frias, 378 4200 Perspective on the Smart Grid Campus da FEUP Rua Dr. Roberto Frias, 378 4200 - 465 Porto Portugal Vladimiro Miranda IEEE Fellow T +351 222 094 000 F +351 222 094 050 Director, INESC Porto Professor, FEUP www@inescporto. pt www. inescporto. pt © 2009

Introduction • Driving forces for the development of the electric energy systems: – 1) Introduction • Driving forces for the development of the electric energy systems: – 1) Environmental issues: meet Kyoto protocol targets (reduce emissions by replacing fossil generation by zero emission generation, reduce network losses), minimize visual impacts and land use. – 2) Replacement of old infrastructures (generation and grid) – 3) Security of Supply – 4) Increase quality of service (more automation and remote control) – 5) Electricity market liberalization (energy and services) – 1) Increase renewable generation, exploit clean coal technologies, CCGT and others – 2) Increase Distributed Generation – 3) Increase Demand Side Participation (increase load consumption efficiency) FROM THE MIGHT OF KNOWLEDGE TO THE POWER SYSTEM Lisboa / Ciência 2009 2

Introduction: The Vision for the Future From “Smart Grids – Vision and Strategy for Introduction: The Vision for the Future From “Smart Grids – Vision and Strategy for Europe’s Electricity Networks of the Future” FROM THE MIGHT OF KNOWLEDGE TO THE POWER SYSTEM Lisboa / Ciência 2009 3

What has to change? • New paradigmas are under development Current distribution grid management What has to change? • New paradigmas are under development Current distribution grid management practice needs to be changed from passive to active FROM THE MIGHT OF KNOWLEDGE TO THE POWER SYSTEM Lisboa / Ciência 2009 4

New Solutions: New management / control structures • Virtual Power Plants should be developed New Solutions: New management / control structures • Virtual Power Plants should be developed and installed, involving new functionalities - wind park and DG dispatch centers, including forecasting. FROM THE MIGHT OF KNOWLEDGE TO THE POWER SYSTEM Lisboa / Ciência 2009 5

New Control Architectures (Distribution Grid) DMS – Distribution Management System CAMC – Central Autonomous New Control Architectures (Distribution Grid) DMS – Distribution Management System CAMC – Central Autonomous Management Controller MGCC – Micro. Grid Central Controller RTU – Remote Terminal Unit FROM THE MIGHT OF KNOWLEDGE TO THE POWER SYSTEM Lisboa / Ciência 2009 6

New commercial and technical management solutions: Smart metering FROM THE MIGHT OF KNOWLEDGE TO New commercial and technical management solutions: Smart metering FROM THE MIGHT OF KNOWLEDGE TO THE POWER SYSTEM Lisboa / Ciência 2009 7

What is expectable from a Smart. Grid? • Definition: A Smart. Grid is an What is expectable from a Smart. Grid? • Definition: A Smart. Grid is an electricity network that can intelligently integrate the actions of all users connected to it - generators, consumers and those that do both - in order to efficiently deliver sustainable, economic and secure electricity supplies. • Main characteristics of a Smart. Grid – Two way communication everywhere – Extensive use of sensors – Control over power flows – Adaptive protections, semi automated restoration, self healing, – System capacity extension to the limits (dynamic monitoring) – Large penetration of DG and intermittent power sources (millions of mgenerators) – Full price information, dynamic tariffs, active demand response – Integrated demand side automation. Increased efficiency of operation FROM THE MIGHT OF KNOWLEDGE TO THE POWER SYSTEM Lisboa / Ciência 2009 8

Smart Grid and Open System Communication Architecture Through an open systems architecture, a common Smart Grid and Open System Communication Architecture Through an open systems architecture, a common communications system can be shared by all components that plug into it. The Smart Grid is about enabling the right information at the right time to the right people FROM THE MIGHT OF KNOWLEDGE TO THE POWER SYSTEM Lisboa / Ciência 2009 9

Conclusions The integration, of large shares of renewable energy sources and the need to Conclusions The integration, of large shares of renewable energy sources and the need to increase efficiency of operation in electric power systems require a set of new technical solutions and operational rules, where IT technologies will play a key role. The Smart Grid will allow: • Management of congestion problems; • Reduction of network losses; • Reduction of CO 2 emissions; • Increase in Quality of Service; • Load profile management for market participation; • DG, microgeneration and demand to participate in markets and helping system operators to manage the system; • Increased grid technical operation performance: • Easier future extension to the V 2 G concept. FROM THE MIGHT OF KNOWLEDGE TO THE POWER SYSTEM Lisboa / Ciência 2009 10

Conclusions Barriers – opportunities – enabling actions: – Need for large investments; – Tremendous Conclusions Barriers – opportunities – enabling actions: – Need for large investments; – Tremendous opportunities for the industry and for nation economic development; – Identify and evaluate the economics of the deployment; – Allow the recognition by the regulators of incurred costs on developing the smart grid concept (indirect incentives) – regulatory issue; – Development of projects with large involvements from SO and industrial manufacturers; Increase research; FROM THE MIGHT OF KNOWLEDGE TO THE POWER SYSTEM Lisboa / Ciência 2009 11