dr. armin ardone, stuttgart may 11 - smartgrids bw and logicitics (prof. frank schultman) about 25...

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KIT University of the State of Baden-Wuerttemberg and National Research Center of the Helmholtz Association Institute for Industrial Production (IIP) Chair of Energy Economics www.kit.edu smart grids: a spotlight on current research activities at KIT Dr. Armin Ardone, Stuttgart May 11 th

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KIT – University of the State of Baden-Wuerttemberg and

National Research Center of the Helmholtz Association

Institute for Industrial Production (IIP)

Chair of Energy Economics

www.kit.edu

smart grids: a spotlight on current research activities at KIT

Dr. Armin Ardone, Stuttgart May 11th

2 Institute for Industrial Production (IIP)

Chair of Energy Economics

Million € annual budget

KIT in numbers

9.254Employees

359Full professors

23.905Students

785532 Incoming exchange students

08.09.2015

3 Institute for Industrial Production (IIP)

Chair of Energy Economics

The IIP at the KIT faculty of economics

IIP

(Rimbon, Jérémy)

EnergyEconomics (Prof. Wolf Fichtner)

Renewablesand

E-Efficiency(Dr. Russell McKenna

E-Markets(Dr. Dogan

Keles)

Distributed Energy Systems

and Networks (Dr. Armin Ardone)

Energyand

Transport (Dr. Patrick

Jochem)

SCM andLogicitics

(Prof. Frank Schultman)

About 25 „research assistants“

(i.e. „PhD-students“ working mainly as policy consultants)

plus other master and bachelor students

Institute

Chair

Research

group

Meta

institutes:

• Energy Center

• KSRI

08.09.2015

4 Institute for Industrial Production (IIP)

Chair of Energy Economics

Motivation: Installed capacities Germany

6 Institute for Industrial Production (IIP)

Chair of Energy Economics

Motivation: Volatile share of total electricity production (GER)

RES-E share in 2015: 32,6%

Target 2025: 40-45%

Target 2035: 55-60%

7 Institute for Industrial Production (IIP)

Chair of Energy Economics

Motivation: Hourly power generation December 2015

Exports solve issue of excess production (for now)

8 Institute for Industrial Production (IIP)

Chair of Energy Economics

Motivation: … but Wholesale Power Prices collapse

9 Institute for Industrial Production (IIP)

Chair of Energy Economics

Motivation: Electricity generation in August 2015 (GER)

PV impact now visible, too

10 Institute for Industrial Production (IIP)

Chair of Energy Economics

Motivation: Solution requires a Smart Energy System

Source: Prof. Dr.-Ing. Matthias Luther, The Transition of the Electrical Energy Systems: Perspectives, Challenges and Research

+Smart Markets

11 Institute for Industrial Production (IIP)

Chair of Energy Economics

Thermal power plant park

(e.g. Germany, Europe: Inst.

Capacities, Efficiencies…)

Hydro storages

(Volumes, discharge

rates)

Power

transmission

lines

Existing assets and decided projects

External (policy-driven) developments

(e.g. nuclear phase-out in Germany)

Results

• (Regional)

power plant

park

development

• Transmission

grid

development

• Fuel

consumption

• CO2 emissions

• (Nodal)

marginal prices

(short-run and

long-run

marginal costs)

• Total system

expenses

Market Model

Minimisation of system expenses for load coverage

System (residual) load –

Var. Costs

(€/MWh)

Av. Capacity

(GW)

0

20

40

60

80

100

120

1 11 21 31 41 51 61 71 81 91

EU

R/M

Wh

Available capacity (GW)

Nuclear

Lignite

Hard coal

CCGT

OCGT

Renewables

World market fuel price

scenarios (e.g. hard coal, gas,

oil)

CO2 certificate limits or prices

Domestic fuel price scenarios

(e.g. lignite)

Power plant technology

development (convention-al

expansion candidates: capex,

opex, efficiency...)

Technology development data

for Renewables (capex, opex)

(Regional) renewable

potentials and generation

profiles

(Regional) electricity

consumption (amount and

profile)

Macroeconomic

developments (GDP, inflation,

exchange rates…)

Sce

na

rio

assu

mp

tio

ns / e

ne

rgy e

co

no

mic

ma

rke

t vie

w

Transmission grid technology

development (AC and HVDC

gridlines expansion options:

capex)

Smart Transmission Grid: Endogenous and simultaneous

optimization of power plant and grid extension

12 Institute for Industrial Production (IIP)

Chair of Energy Economics16Präsentation Projektskizze LiLa Walldorf am 20.01.2015

Additions near to off-shore

grid connections

Two locations

Bentwisch

Lubmin

Moderate reduction of

curtailment

Scenario w/o PtG: 8,5%

Scenario with PtG: 8,4%

Much higher impact

expected in 100% RES-E

case

Smart Transmission Grid: Power to Gas results for 85%

RES-E case (2050)

13 Institute for Industrial Production (IIP)

Chair of Energy Economics

Smart Grids may include gas infrastructure

Grid

ModelMarket

Model

Market

Model

Excess Electricity

Gas ProductionElectr. Generation

Gas to Power

Technical

Restrictions

Technical

Restrictions

Financial

Flows

Financial

Flows

Coupling of Electricity and Gas Grid (and System)CHP new build

RES-E new build + feed-in

Grid expansion

Electricity Storage

Power to Gas

P2G new build

Gas grid expansion

Gas storage

g2P new build

Development Power

Development Gas

Distribution

Model

Transmission

Model

Eletricity Grid

Gas Network

14 Institute for Industrial Production (IIP)

Chair of Energy Economics

Project: Distributed energy systems and networks

research focus:

- Market design of distributed energy systems

- Analysis of load shifting potential and user acceptance of (price-based) demand side management

- Stochastic approaches for layout planning, energy management and forecasting in distributed

energy systems

related project: Energy Supply Cooperative (https://www.iip.kit.edu/1064_2055.php)

Development of energy-efficient, environmentally

friendly residential quarters:

- Reduction of energy consumption to a minimum

by modern passive house technologies

- Provision of a large part of the required energy

by photovoltaic (PV) systems

- Optimisation of PV self-usage by heat pumps

with storages and intelligent load shifting

problem: resulting in large-scale

optimization problems

30.05.2016

Hannes

Schwarz

15 Institute for Industrial Production (IIP)

Chair of Energy Economics

Project: Distributed energy systems and networks

Collaborative project of UBC, KIT and ESRI

Development and application of optimization methods

for stochastic programs for decentralized energy systems

30.05.2016

Project member name Organization

1. Prof. Dr. Holger Hoos University of British Columbia (UBC), Canada

2. Dr. Lars Kotthoff University of British Columbia (UBC), Canada

3. Prof. Dr. Wolf Fichtner Karlsruhe Institute of Technology (KIT), Germany

4. Hannes Schwarz Karlsruhe Institute of Technology (KIT), Germany

5. Valentin Bertsch The Economic and Social Research Institute (ESRI), Ireland

focus on: optimization of decentralized energy systems under uncertainty: residential quarter are modeled as a two-

stage stochastic, mixed-integer linear program (SMILP) where the investment and operation of the

integrated photovoltaic system, the heat pumps and storages are optimized

current state: optimization requires several days, weeks or even months

improvement of the optimization process by:

- using the optimization decision procedure SMAC developed by the UBC that automatically tunes the

possible solving options to accelerate the optimization process

- substitute the time-consuming solving procedure by new heuristic approaches

16 Institute for Industrial Production (IIP)

Chair of Energy Economics

Project: Distributed energy systems and networks

30.05.2016

Stochastic

Optimization

Restrictions fulfilled

in all scenarios

größerer Heizungsspeicher im Vgl. zur

Speichergröße der max. Auftrittshäufigkeit

Bigger heat storage in comparison to result

based on average whether data

29800

30600

31400

32200

33000

0

1

2

3

4

5

6

7

0 4 812 16 20

2428

3236

4044

4852

5660

6468

minimaleKosten in €

Häu

figk

eit

Speichergröße in kWh

6-7

5-6

4-5

3-4

2-3

1-2

0-1

stoch.opt. Lösung:min. costs* = 31 147€> mit sH

max = 17,7 kWh> mit sWW

max = 45,3 kWh

Dichtefunktion der minimalen Kosten und der SpeichergrößeDensity function of minimal cost and heat storage size

Storage size in kWh

Occure

nce

17 Institute for Industrial Production (IIP)

Chair of Energy Economics

Project: Utility balancing scheduling with HH-storages

Pb1 (Benchmark): N users with storages that “want to help” the utility. The utility has a

plan B to match supply with demand but wants to use the N users as a “cheap” plan A.

Min. of the deviation from projected supply Si

NLP, centralized, all info available

Pb2: Scheduling prices Pi1 and Pi2 (s.t. Pi1<Pi2ηc ηd) to each user in each timeslot so

as to minimize the use of plan B.

Min. of the deviation from projected supply Si

NLIP (charging/discharging decision is min.function) linearization

The solution is not “fair”

Introduction of fairness by adding (Catherine Rosenberg,

ece.uwaterloo.ca)

ε has to be small (not easy to select)

18 Institute for Industrial Production (IIP)

Chair of Energy Economics

Project: Reflex (EIFER, European Institute for Energy Research)

Full name: Replicability concept for Flexible Smart Grids

Funding: BMWi through Era Net SG+ program (though PTJ)

Time period: 04/2016 – 04/2019, Consortium: 5 partners

Scope: Even though many smart grid projects showed the potential for replication, neither guidelines nor concept exist on how to transfer demos and pilots to other electrical grids in a systematic way and to develop transferable business models for the industry.

The ReFlex project will build on finalized or ongoing demo and pilot projects from DE, AT, SE and CH, desk research and simulation studies. It will consist in identifying and understanding the most relevant dimensions of replicability: socio-political acceptance, design of market and interoperability issues.

Reflex aims at developing a replicability concept and guidelines for the deployment of technologically feasible, market based and user friendly solutions for smart grids

EIFER’s contribution tackles technology assessment and comparison through simulation models as well as the development of communities of practice and knowledge exchange.

19 Institute for Industrial Production (IIP)

Chair of Energy Economics

Project: Sim4Blocks (EIFER)

Funding: EU Horizon 2020 research innovation programme

Time period: 04/2016 – 04/2020, Consortium: 17 partners

Scope: Sim4Blocks is a four-year, EC-funded project that focuses on the development of innovative Demand Response (DR) services for residential and commercial applications. The project combines decentralised energy management technology at the blocks-of-buildings-scale to enable DR.

The DR systems and services will be tested in three pilot sites in DE, ES and CH, and tested together with interfaces for intuitive user interaction. Successful models will be transferred to the customers of project partners in further European countries (BE, FR, UK). The pilot sites are blocks of highly energy-efficient buildings with diverse energy systems and, most importantly, the infrastructure necessary for testing DR strategies.

EIFER’s contribution is related to a simulation-supported exploration and analysis of market access strategies and business models, and their relevance under current and upcoming regulation schemes across the EU. EIFER leads the WP7.

20 Institute for Industrial Production (IIP)

Chair of Energy Economics6

LiLa Walldorf: An existing region with interesting flexibility

options

21 Institute for Industrial Production (IIP)

Chair of Energy Economics

Markets for IT and CommunicationTtechnologies

Electricity Market

Infr

astr

uctu

reTari

ffs

Basic price depends on internet speed

Unlimited data volume

New tariffs also applicable here?

Today‘s tariffs independent of

maximum load/capacity

Charging only per kWh

Future concept may include

capacity-driven fixed price

14

Testing new tariff systems similar to IT/mobile communication

22 Institute for Industrial Production (IIP)

Chair of Energy Economics16

Power Plant

Operators

Electricity Seller

Power plants

Investment

planner

Load Profiles

TSO/DSO

RES-E Profiles

Bids

Results

Demand

Demand Electricity

Buyer

Spotmarket

Futures

Reservemarkt

Offer

Capacity Market

Utility

Demand

Demand

Earnings

Electricity

Buyer

Regulator

Bids

Demand

Power plant new

builds

Capacity payments

Multi-Agent-Power System Model (Power ACE)

23 Institute for Industrial Production (IIP)

Chair of Energy Economics

C/sells – Research and Demonstration

16Präsentation Projektskizze LiLa Walldorf am 20.01.2015

Thank you for your attention