This last chapter is intended to be the application framework of the tools that we have developed throughout the book. Whether referring to optimization techniques or focusing on the statistical contribution of data, the implementation of real solutions remains the only tangible expression of the development and the promotion of innovative ideas. The reflection conducted about the new concepts of production, management, trade and electrical energy consumption provides consistency to a whole thought process where only action is entitled to be mentioned.
SmartGrid technologies appear as the solution to the transformation of electrical networks taken in their entirety to respond and adapt to ever increasing demand, to the integration of the intermittent and distributed production of renewable energy and more generally to address issues of decarbonization of the energy system.
By 2020, about 50 billion diverse and varied devices will likely be connected to each other by means of a new “Internet of Things”. As such, electricity networks gradually acquire a new integrative role of “systems of systems”, composed of, to put it metaphorically, “constellations of micro-networks” performing energy transactions between themselves and making use of the new possibilities of information and communication technologies (ICTs) to enable transactional controls at different levels of energy subsystems.
All of these systems interacting with each other, regardless of the scale being considered, constitute the global SmartGrid system which allows for the management and distribution of energy in an optimal manner through the coordination of the operations of these MicroGrids. This new era cannot be conceived without reconsidering the way in which the principles of control are designed in order to integrate a real potential for communication and for managing bidirectional energy flows. These principles should also integrate all of the production sources (conventional and renewable), after the customers’ demand has been made flexible and after considering how transactions are organized along the wholesale energy markets’ chain of value of energy. The result is to allow for the management of the interaction between “production, consumption and storage aggregators” toward the management of retail portfolios incorporating the flexibility of end-users and the distributed means of production.
Electricity companies have gradually progressed toward these new SmartGrid concepts by means of a series of pilot projects and demonstrations with the aim of defining an optimal transition path while maintaining the same reliability standards on their critical infrastructures.
As a matter of fact, networks have historically been operated by means of one-way real-time communication, requiring connections of small numbers of “dispatchable” production points and by considering IT architectures in which “dispatch” optimization was managed by a limited number of centralized computational platforms.
Similarly, data manipulation has always been done with the aim of reconciliation. The prediction of most data related to consumption was intended to minimize errors at the scale of large network areas, with the purpose of minimizing forecasting errors and in order to financially reconcile, by way of a few meter readings a few months later, the profiles based on theoretical load profiles. Distribution operators have always had very limited access to real-time data originating from their demand.
With SmartGrids, communication becomes multidimensional, with information flowing between several layers in energy systems, involving real-time transactions between the players of the market from generation to demand. The ultimate goal is to allow the whole of the system to work in a much more flexible manner, to enable a wider penetration of intermittent renewable energy production through interactive network infrastructures, by integrating interaction with consumers by means of various processes for demand management (Demand Response or load management), the management, of distributed storage and the recharging of electric vehicles.
In the long term, SmartGrid technology will make it possible to coordinate the needs and flexibility capabilities of all the centralized or distributed stakeholders of transport and distribution network infrastructures up to end users and aggregator participants of the electricity market. This will result in optimally managing all of the parts constituting this complex system in a given regulatory context. The ultimate goal of this optimization is to minimize the cost of operating the energy system as a whole, taking into account the costs of operating the various constituent components, the costs of environmental impacts and associated penalties, while maintaining the reliability of the system as a whole, its resilience and its dynamic stability.
SmartGrids also allow for the implementation of new regulatory options by offering new services and incentives for now active consumers. By exposing them to new offers of electricity prices, reflecting in real time not only the supply–demand balance of the energy system but also the costs associated with the technical constraints related to energy transit in networks. The objective of these new offers is to propose new incentives to consumers ready to change their behavior and make them responsible for their individual carbon footprint.
Between 2010 and 2030, economic growth should more than double the global energy demand. During this period, world global emissions of CO2 should grow even faster. The effort required to reduce these CO2 emissions has reached a critical stage and the introduction of new renewable energy sources has become a priority. According to the International Energy Agency (IEA), renewable energy and biofuels will lead to a reduction of 23% of greenhouse gases by 2030. This will result in an increase in the share of renewable energy in electrical networks to more than 30% of the total demand by 2030, which means that the renewable energy share will reach, in real-time scales, proportions largely exceeding 50% of the consumption of energy systems. This strong growth has had the effect of considerably reducing the production costs of renewable energy, which has reached network parity in many parts of the world.
Furthermore, electrical network operators are the most directly and largely exposed economic players to the consequences of environmental disasters, which force them to review their technology options in order to increase the resilience of their infrastructures against extreme weather conditions. These technologies are designed to achieve greater reliability in networks and to minimize the impact of large power outages (blackouts) by implementing new strategies for self-healing so as to allow for the division of networks into MicroGrids which will result in the impact of major network incidents at the end customers’ level to be minimized.
Finally, electric operators continue their efforts to improve the effectiveness of the network, seeking to reduce losses, to minimize network balancing and congestion costs induced by the integration of renewable energy and to optimize their network-building strategies.
Throughout the world, electrical systems are, in this context, facing many challenges, namely aging infrastructures, the development of new interconnections integrating distributed renewable energy, the increasing integration of renewable energy sources and electric vehicles, the need to improve supply safety and the obligation to reduce carbon dioxide emissions.
The recent failures of electrical systems during extreme weather conditions have recently drawn the attention of the public to the critical role of network operators in modern society. Network reliability is the ability of the system to meet customers’ requirements in terms of power and energy, taking into consideration forced outages (following interruption) as well as the planned maintenance of equipment outages in the system. The North American Electric Reliability Corporation defines the reliability of an interconnected electrical network by two basic and functional aspects: “adequacy and security”.
Production/consumption adequacy is the capacity of the energy system to satisfy the energy and power needs of all its customers at any time, taking into account the constraints of planned maintenance and faults evaluated under a reasonable risk of occurrence.
SmartGrid technologies indirectly contribute to improving this system adequacy by means of an optimized redistribution of power flows in every node of the network. In addition, ever more abundant data gathered at the consumer level allows for a finer analysis of market scenarios through estimates closer to real-time consumption and renewable energy production at different temporal and geographic levels.
The term adequacy includes, in particular, new concerns regarding flexibility related to the deployment of means for the production of renewable energy having an intermittent nature, which require the implementation of new management flexibility mechanisms, such as the deployment of mechanisms for managing real-time adjustments as well as the reserve of the system at the level of transport operators and the deployment of management mechanisms of technical constraints at the distribution operator level.
The operating safety is the capacity of the system to remain in service during disturbances such as short circuits, the loss of operating equipment, extreme meteorological events or acts of terrorism.
When these interruptions remain circumscribed in a localized area, they are considered as faults or unintended disruptions. When they are spread over large areas, this is then referred to as a phenomenon of “cascading outages”, resulting from successive and uncontrolled failures of the system elements, triggered by an incident that could have occurred anywhere.
SmartGrid technologies are capable of containing and improving the security of the system by means of innovative defense planning systems. By deploying sensors throughout the electrical network, they can monitor and anticipate any system failure before it occurs and prepare targeted actions aimed at minimizing operating losses in the system. When faults occur, these technologies constitute a means to reduce their propagation and interface with new tools for the management of the mobility of maintenance crews spread on the ground in order to automate and accelerate restoration strategies.
Resistance to computer attacks (cyber security) also represents a critical dimension of the security of the energy system as a whole. The penetration of digital technology at the heart of the operating system of SmartGrids introduces new vulnerabilities by offering new access to computer hackers. Cyber security is becoming a key parameter in design criteria for smart electrical networks and, regarded as a new constraint, it must be considered in a global approach both at the level of contingency analysis scenarios and at the level of strategic defense planning.
Energy quality is another fundamental indicator of energy systems, with the objective of identifying distortions in voltage and current waveforms, as well as phase shifts caused by transient disturbances. These distortions or phase shifts are likely to generate serious failures, to the extent of disabling equipment at the interface of the electric network. The most important aspect refers to the quality of the voltage provided to customers, which requires diversions and disruptions to be followed with respect to steady-state operating conditions.
The radial distribution of medium and low voltage energy is one of the key features of networks, as opposed to high-voltage transport networks which are very largely meshed. The redundancy capacity of the distribution system is very limited, at the expense of the quality of service guaranteed to consumers. On the other hand, defects caused to high-voltage (HV) transport networks rarely translate into a loss of energy supply.
One of the advantages inherent to distributed energy sources (generation or energy storage) connected to medium and/or low voltage networks is their intrinsic ability to offer an alternative supply in case of failure of the main distribution network.
This led to a significant development in network architectures, which involved redesigning conventional centralized control architectures into new distributed multi-level control architectures allowing for flow optimization between MicroGrids located at different levels of the main network.
Electricity is and remains one of the growing components of global energy demand, particularly in developing economies where the structures of electrical networks have not yet reached their maturity.
In OECD countries, with more modest energy consumption growth rates, SmartGrid solutions offer new advantages by facilitating the connection of production sources of intermittent renewable energy, allowing the structural reinforcement needed for growing network areas (typically urban centers) and facing environmental requirements (in particular the distribution of transportation means without CO2 emissions whether they be public transport or electric vehicles). These new connections are the focus of new cost benefit analyses to minimize the enhancement needs of existing infrastructures, and to maximize the use of SmartGrid technologies such as the active management of demand or storage.
In developing regions with high energy consumption growth rates, SmartGrid technologies are considered to be directly incorporated into new infrastructures in order to maximize the use of these infrastructures.
Everywhere, SmartGrid technologies allow for a better understanding of the needs of innovative planning by anticipating induced efficiency gains, by reducing the criticality of power demand at peak state and, in a general manner, by smoothing the solicitations to which the network is exposed.
Electricity demand varies throughout the day and according to seasons (Figure 8.2). Electricity system infrastructures are designed to face extreme solicitations, and a contrario, outside of rush hour, the system is generally underutilized. However, building a system to address occasional peak demand translates into financial surcharges, whereas smoothing the curve of energy demand would enable them to be reduced.
SmartGrids make it possible in particular to reduce this peak demand by offering new pricing and incentive information to consumers to allow them to shift their flexible consumption outside of peak periods. This real-time management of demand (load management) – the mechanism by which users at the end of the chain (at the industrial, service or residential sector levels) adapt their consumption according to tariff conditions or other indicators–enables the peak demand to be smoothed and thus better amortization of network infrastructures. This can also contribute to bringing flexibility to the operation of the system in order to integrate larger variable production capacities. Peak demand management (load or demand-side management (DSM)) is usually the first priority in the deployment of smart networks, because it is the most cost-effective way to provide the system with new sources of flexibility.
The electrification of developed countries has taken place over the last hundred years; it is important to constantly invest in order to continue to guarantee the reliability and the quality of the supply. While consumption requirements do develop, in quantity and quality, as well as distributed energy production tends to spread out, the aging of energy transport and distribution infrastructures has to be dealt with.
SmartGrid technologies offer the opportunity to maximize the usage of existing infrastructures through better real-time monitoring of the operating conditions of the network equipment so as to allow for an estimation of the reserve capacities of infrastructures in real-time. They also make it possible to better define replacement strategies for electrical network equipment by anticipating the replacement of the most sought after equipment and by considering the extension of their use beyond the lifetime assigned for other equipment that would have been underutilized.
Efforts aiming to reduce CO2 emissions related to electricity production have led to a significant penetration of intermittent renewable production technologies. This continuous increase is gradually extending to all regions (Figure 8.3).
Unlike traditional production methods, the production of energy sources known as “variable” is very closely correlated with weather conditions in different parts of the network. This leads to new constraints for balancing the electricity system, associated with the prediction, the monitoring and the control of the adequacy between supply and demand, and with reserve management. When the contribution of variable energy sources, with respect to the global production base, exceeds 15–20%, it becomes necessary to implement new management strategies to provide network operators with new flexibility in order to ensure system balancing (Figure 8.4).
SmartGrid technologies enable the deployment of larger amounts of intermittent resources by means of integrating new artificial intelligence and machine learning technologies in order to best predict production and demand and to improve the economic “dispatch” of the system in its entirety.
As has been previously developed, SmartGrid technologies have the ability to coordinate the production and consumption related to the available network capacities in line with energy market managements. They consist of an integrated architecture of the value chain from start to finish according to specific principles.
The new IT infrastructures of SmartGrid technologies open the way for a better optimization of the electrical system as a whole, through a better real-time estimation of network assets and of means of production, through sensors distributed at the interfaces of the system, the GridEdge, by way of automata and computers distributed in substations and control centers, up to every power feeder, or even in consumers’ homes in order to enable a flexible dynamic control of expenses.
These new architectures combine centralized computerized processing in control centers, and even the Cloud depending on the nature of the data and their criticality, with concepts of distributed intelligence deployed at different levels of the network, from control centers in thermal plants up to control systems in renewable energy parks and load management in consumers’ homes.
These systems are based on hybrid unified architectures (Figure 8.5) combining On-Premise, Cloud Substation and GridEdge multilevel automated systems, incorporating the latest communication standards developed in the industry, and especially the IEC61850 Common Information Model (unified data model) and the SmartGrid SGAM architecture model.
They comprise expert user interfaces, derived from advanced technologies for real-time decision support of the nearby environment (situational awareness), as well as middleware software integration layers to enable significant scalability in terms of application, interfaces, processing mechanisms and data storage. These tools integrate with physical network infrastructures, superposing an information technology layer.
These systems provide operators with real-time information about every asset in the network (quality, measures, oscillations, counters, etc.) to enable the real-time management of transactions between means of production, storage and flexible demand while ensuring an optimal balancing of the system as a whole.
The previous “systems of systems” SmartGrid architecture is composed of several key technological building blocks interacting with one another at different levels of the electric network. Some of these components already exist in the network, others considered as mature are being deployed while some still require development and demonstration stages.
For this purpose, close collaborations between electric operators and market participants are essential to update associated technologies and deployment strategies.
When examining the various technology layers of systems, multiple blocks can be distinguished:
A MicroGrid is a section contiguous to the electrical network. The commercial incorporation of its distributed energy resources (namely, its means of production, expenses, storage means and the electric vehicles allocated thereto) all contribute to its operation in a coordinated manner in response to its consumption requirements and to the specific constraints of the network, generally related to its congestion and its quality problems.
MicroGrids can operate in a completely autonomous fashion (small disconnected electrical networks) in scenarios where the main network requires it. They are generally attached to an “aggregator” unit operating a virtual power plant (VPP) composed of the aggregation of distributed energy resources of MicroGrids.
The growing demand in distributed renewable energy, the development of information system architectures towards distributed architectures and the active participation of customers in the market through services such as demand-side management are points of convergence towards decentralized MicroGrid architectures, thus offering new business models to network operators. The main advantages of MicroGrids can be outlined as follows:
The qualitative and quantitative evaluations of the advantages largely depend on the MicroGrid business model and on the services offered to the main network. MicroGrids can be defined according to the following usage contexts:
MicroGrid management functionalities are mainly derived from management and portfolio optimization applications of distributed energy resources (DER). These applications derive largely from applications initially deployed in control rooms of public distribution operators which, in the case of private MicroGrids, are operated by other commercial entities.
These systems generally cover the following technological building blocks:
In the future, the operation of electric networks will evolve into a multi-level coordinated network control interfacing with MicroGrid constellations operated through flexibility aggregators (Virtual Power Plant) which interface with network and market operators. Even if the real-time control of each of these MicroGrids will still be managed by local control facilities, a new aggregation layer is emerging in order to ensure the coordination of these MicroGrids regarding the whole of the energy system.
Figure 8.8 illustrates these new integration approaches in which the electrical network plays a new unifying optimization role between different MicroGrid infrastructures deployed at the GridEdge interfaces of the electrical network.
MicroGrids appear as a new cornerstone of interconnections between consumers/users – transformed into “prosumers” likely to offer a new level of flexibility to the system – and the infrastructures of the electric network whose control layers are evolving. This leads to the implementation of new information and communication infrastructures facilitating a global integration of these systems between them, while allowing for distributed control and optimization strategies at all levels of the electricity system, depending on the technical and business model constraints under consideration.
In cities in particular, where energy systems are particularly constrained, these architectures should also enable an extension beyond the limit of the power system, by means of interconnecting with other gas, heat or even electric vehicle recharging networks through open interfaces allowing the exchange of flexibility between these systems.
A major challenge for the deployment of these new architectures is their potential to open up sufficient new avenues to be able to interrelate historically isolated information while responding to new rules of confidentiality and minimizing risks in terms of cyber-security. These new systems will aim to establish optimal control strategies between energy infrastructures.
Over the past years, architecture specifications and the standardization of interfaces have remained confined to “single infrastructure silos” relying on highly personalized platforms and specific to each field. Recent developments in ICTs nevertheless enable the consideration of new “Industrial Internet” platforms, focusing on re-using Big Data and Machine Learning applications capable of considering new avenues for “System of systems” deployment, thus making a decompartmentalization of the energy system by data possible.