ICT APPLICATIONS FOR ENERGY MARKETS

POWER + ICT + RENEWABLES + ENERGY STORAGE = SMART GRIDS

ISSUSES

How ICT industry can take part in energy market development?

Innovative technologies for electricity and transportation market

Big numbers - economy of scale

Critical infrastructure convergence

Internet of Things – the fist step to the Smart-X future

Innovation and Competition Policy Dilemmas

MAIN ISSUES

Fossil fuels - shortages, emissions, allocation, availability / accessibility

Rising cost and prices of fuels and infrastructure

Inefficient energy usage

Low level innovations - Insufficient competition - Subsidiaries

Standardisation and market liberalisation

Energy Storage – Transport Electrification – Renewables – Digital Services

Digital Energy Market -Internet of Things Infrastructure – Smart-X products

Innovation and Competition Policy Dilemmas

DECONCENTRATION

ELECTRIC ENERGY STORAGE

2-WAY TRANSMISSION

Telematics

Measurements Controlling

Distributed Management

Communication

ICT ENABLERS AND APPLICATIONS

DECARBONISATION

AC TO DC CONVERTION

ELECTRIFIC VEHICLES

Virtual Power Plants

Rectification Integration

Energy efficient equipment (e.g. LED)

Power generation (e.g. PV)

Investment planning and optimisation

VISIONS

BulkGeneration

TransmissionGrid

DistributionGrid

Customers’Interfaces

Smart HomeNetwork

Source: Austin EnergySource: NEC

Next-generation

genomics

Advanced

materials

Advanced

oil and gas

exploration

and recovery

Mobile InternetIncreasingly inexpensive and capable mobile computing devices and Internet connectivity

Automation of knowledge work

Intelligent software systems that can perform knowledge work tasks involving unstructured commands and subtle judgments.

Advanced robotics

Increasingly capable robots with enhanced senses, dexterity, and intelligence used to automate tasks or augment humans

Autonomous and near-autonomous vehicles

Vehicles that can navigate and operate with reduced or no

human intervention

3D printing Additive manufacturing techniques to create objects by printing layers of material based on digital models

ICT oriented convergence of the critical infrastructure

The Internet of Things Networks of low-cost sensors and actuators for

data collection, monitoring, decision making, and

process optimization

Cloud technology Use of computer hardware and software

resources delivered over a network or the

Internet, often as a service

Energy storage Devices or systems that store energy for later

use, including batteries

Renewable energyGeneration of electricity from renewable sources

with reduced harmful climate impact

Nine (ICT) of twelve potentially economically disruptive technologies

SOURCE: McKinsey Global Institute, Disruptive technologies: Advances that will transform life, business, and the global economy, May 2013

Time

Pro

du

ctiv

ity

Evolutionary Technology Development

Renewables

AMI and Telematics

Energy Storage

Main ICT Innovations in Electricity Market

Relevant and Disruptive Innovations

IoT

German Energy Policy Changing the LCOESubsidiaries and Real Cost Issue

LCOE in UE

Nuclear (new plants) Solar PV (rooftop)

LCOE in UE for Large Scale Ground-mounted Solar PV

2008 2012

Basic factsICT has immense potential to improve energy usage

Source: http://data.worldbank.org/

2

4

6

8

10

12

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

EU

France

Poland

Sweden

World

USA

China

GDP per unit of energy use (constant 2011 PPP $ per kg of oil equivalent)

zł/

kWp

1 x2 x4 x5x3 x6 x7 x8 x9

Multiplication factor

3900

2925

1660

2193

Every doubling manufacturing capacity

of electronic product yieldscost reduction by 20% to 30%

Economy of scale in ICT manufacturing Industry

PV 1kWp Cost

Cost reduction forecast for Vanadium Redox BatteriesLevelized Cost of Electric Energy Time Shift

Source: U.S. Dep. Of Energy

ICT applications in electric vehicle

Source: Electropaedia

Battery Management System

Basic factsWorld Energy Consumption per capita (TPES) 22,3 MWh

Source: http://data.worldbank.org/

0

2000

4000

6000

8000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

USA

France

EU

Poland

China

World

Energy use (kg of oil equivalent per capita) 2005/2012 - +8,36% (22,3 MWh per capita)

1toe=11.63 MWh

ICT innovations in lightingOverall improvement (energy efficiency, reliability, cost, material usage, environmental impact)

Source: Austin Energy

Basic factsICT helps reduce fossil fuels usage

Source: http://data.worldbank.org/

0

20

40

60

80

100

120

2005 2006 2007 2008 2009 2010 2011 2012 2013

Poland

China

USA

World

EU

France

Sweden

Fossil fuel energy consumption (% of total energy use)

CO2 Emissions from Fuel CombustionCombustion of Fossil Fuels – 94.2% of Total CO2 Emissions

Heat and Electricity 48,70%

Transportation 20%

Manufacturing & Construction 21%

Buildings 8%Others 2%

USA, 2006

Global PV Module Sales 2007-2013Expected annual manufacturing capacity: 200 GWp in 2020 and 1000 GWp in 2050

0

5

10

15

20

25

30

35

40

45

20072008

20092010

20112012

2013

4,028 7,267 11,103

23,481

36,996 38,75 39,987

GW

Drivers

• Electric vehicles• Growing demand

for electricity

Basic factsEnergy market seems to shift towards electricity

Source: http://data.worldbank.org/

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Sweden

USA

France

EU

Poland

China

World

Electric power consumption (kWh per capita) 2005/2012 - + 16% (+3,1 MWh per capita)

Basic factsFASTEST GROWING PART OF ENERGY MARKET

Source: http://data.worldbank.org/

0

5

10

15

20

25

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

EU

World

China

France

USA

Poland

Renewable electricity output (% of total electricity output)

ICT Convergence Processes

o ICT based convergence of critical infrastructure networks New integrated regulations should encourage operators to cooperate Competition issues

oConvergence of services delivered by NGN Unification of addressing technologies with leading role of IP-based protocols Convergence of electronic communication networks

oDigital convergence of products Multi-functional digital devices (smartphone, robot etc.) Total universal multi-sensor measurement infrastructure Advance Measurement Infrastructure – important part of the future IoT - based measurement

system

o IoT – DISRUPTIVE TECHNOLOGY AND MAIN DEVELOPMENT DRIVER

CONCERGENCE OF INFRASTRUCTURES AND PRODUCTS DRIVING BY SMART - X TECHNOLOGY

MAINSTREAM OF INNOVATIVE EVOLUTION ENABLING HORIZONTAL DIGITALISATION

Role of National Regulations

oEvolutionary reduction of direct subsidiaries and donations

oStrong support for innovative change of technology and business models

oImplementation, monitoring and evaluation of measures under Directive 2014/61/EU

oHolistic approach to infrastructure development issues

oEffective reduction of fossil fuels usage

HELP TRANSFORM ENERGY MARKETS FROM POLITICALLY DRIVEN TO BUSINESS DRIVEN SECTOR

Telematics by IoT

Smart Grids seems to be an important milestone on the way to the universal telematic infrastructure

To speed up innovative change we need to….