SDSD Industrial Energy Partnerskab - IEP

- Demand side management of electricity in companies

What makes a city smart" Workshop; SmartEnCity Conference; Sønderborg 4th of October 2017 Jørgen Johansen, Purchasing Manager, V. Birn A/S and Lotte Gramkow, Senior Project Manager, CLEAN

Lotte Gramkow:

• Short presentation of CLEAN

• CLEAN's position in the value chain

• Brief introduction to the project “Industrial Energy Partnership”

• Purpose of the IEP-project

• Demand side management / Demand Response (DR) / Flexible electricity

• Participating companies

• Demand Response in the IEP project

• Examples of devices/units suitable for Demand Response (DR)

Jørgen Johansen:

• Short presentation of Vald. Birn

• Flexible electricity consumption - learings

• Proceses and melting capacity

• How

• Future – after IEP

AGENDA

CLEAN

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- is a cleantech cluster based in Denmark and with an international foot print

- our mission is to accelerate the green and sustainable transition, while realizing growth for the Danish cleantech sector

- the organization is a non-profit organization

- is technology neutral with a broad approach to cleantech

- our focus areas are Smart Energy and Energy efficiency, Environment, Smart City and Internationalization

- we have 146 ordinary members & 27 core members, and ¾ of CLEANs members are SMV’s

- right now we have 54 projects with a total budget of more than 500 mill. dkr.

- facilitates more than 50 networking activities with over 1,400 companies/organizations

- has four offices located in: Copenhagen, Sønderborg, Aarhus and Middelfart

CLEAN'S POSITION IN THE VALUE CHAIN

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NEW solutions in a triple helix cluster

Private companies = ability to commercialize and scale new solutions Public authorities = “problem owner”, purchasing power, demand Research institutions = cutting edge knowledge, innovation, and new

ideas

CLEAN

Connect Develop Realize

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Split into Energy & Environment:

- Energy infrastructure - Energy production - Energy efficiency - Energy storage

BACKGROUND – INDUSTRIAL ENERGY-PARTNERSHIP; IEP

Background to the IEP Project - Industrial Energy Partnership

• Growth Plan for Energy and Climate from October 2013.

• The Government will: “Establish a Industrial Energy Partnership regarding flexible electricity consumption in companies. The partnership should look at possibilities and limitations on how electricity consumption can be moved, and investigate how it can be easily made for companies to participate in the electricity market”.

• The Ministry of Industry, Business and Financial Affairs (at the time “Erhvervs- og Vækstministeriet”) has established the IEP project through the Danish Business Authority (Erhvervsstyrelsen).

Participants in the IEP project

Ministry of Industry, Business and Financial Affairs through the Danish Business Authority Ministry of Climate, Energy and Building, through Energinet.dk CLEAN – as the project administrator and coordinator Danish Energy Industries Federation (DI Energy) The Danish Energy Association (Dansk Energi) Case companies, incl. their electricity traders

PURPOSE: IEP-PROJECT

• To strengthen the companies competitiveness

• To test the potential for relocation of energy use in companies

• To strengthen companies and energy distributors participation in the energy market

• To prepare for the future with large quantities of RE in the energy supply

Electricity Market Operator – NordPool Spot

DEMAND RESPONSE IN THE IEP-PROJECT

• The case-companies have pointed out major electricity consuming units, where the energy consumption could be relocated within a day; be made flexible.

• The energy consumption is moved from expensive hours to cheaper hours, reducing the need for peak production.

• Within the project tests are made with both load- and fuel shift.

Photo: Vald. Birn

SYNTHETIC ELECTRICITY PRICES IN THE; CALLED SYN2020

• The project looks to the future, so that the energy prizes are geared with a factor; i.e.. larger fluctuations

• SYN2020 energy prize must represent the future energy prizes with larger parts RE

• The case-companies will in the project period receive a synthetic energy prize anno 2020 (SYN2020)

• SYN2020 energy prize is received at 2 pm and is calculated from the daily prizes from the Nordpool Spot energy stock market

• The case-companies can then organize management and energy consumption for the following 24 hours from the synthetic higher and lower energy prizes

• The project provides establishment of 15 min. individual meters and communication for measurement of the energy consumption of the chosen units.

FACTOR IS MULTIPLIED BY…

The following assumption of Demand Response for the case-company • Electric consuming unit is 1 MW or more and 400 kr. / MWh limit for DR

We use a factor 3 in the project

SYN2020 = GNS + (SPOT-GNS) * FAK (3,0)

PARTICIPATING COMPANIES IN IEP-PROJECT

Vald. Birn Jernstøberi Gartneriet Knud Jepsen Claus Sørensen Gruppen

Danfoss Kalundborg Forsyning (KALFOR)

- Iron foundry - Horticulture - Cold store - Process industry - Utility company

CURRENT ELECTRICITY MARKET PARTICIPATION

Total power consumption

Main Meter

Electricity trader

Cas

e-vi

rkso

mh

ed

Power grid

Balance Responsible

Daily forecast

CASE-COMPANY; DEMAND RESPONSE IN THE IEP PROJECT

Organization of Demand Response, the projects flow of data and support

MW unit

Total power consumption

Submeter Main meter

Electricity trader

IEP-project

Målervirksomhed

Daily SYN2020

prices

Månedlig bonus

15 min. measure

ments

SYN2020 model

Power grid

15 min. measurements Error messages

24 hour prices

Project support

Purchase of services

Cas

e-co

mp

any

EXAMPLES OF DEVICES/UNITS SUITABLE FOR DEMAND RESPONSE

Electric compressors for refrigerators and freezers with the possibility of thermal storage

Melting processes that can be time-shifted Electricity boilers for the production of hot liquids with the possibility of thermal

storage Electric pumps that can be switched on or off time-shifted Large electric powered machines that can be made more flexible Lighting in horticulture greenhouses that can be temporarily displaced without

disturbing plant growth Lighting, such as zoning Internal electricity production at the power plant - Fuelshift Ventilation - AC timing system; ex. Air conditioning systems that can both run

"more" and "less" than normal

IEP HOMEPAGE

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For further information: CLEAN – Lotte Gramkow, log@cleancluster.dk; mobil +45 2031 6463

We are an iron foundry and machining company about 500 employees in Holstebro

In this context, we look at the foundry that melts scrap (40,000 tons / year) to new parts such as:

Parts for the automotive industry (e.g. for Volvo, Scania, ZF)

Various types of pump circulation pumps (e.g. Grundfos)

In 2016 we consumed approx. 100,000,000 kWh, which corresponds to 23,000 Danish households' annual consumption

The production runs in 3 shifts. from Sunday evening at 22 am to Friday 14

VALD. BIRN A/S

Flexible electricity consumption and integration of renewable energy

14. September ved Indkøbschef Jørgen S. Johansen

Much

Employee independence

Least

Less El-Intensive Processes Much

LEARNINGS TO NOW

Savings between 10 and 100 DKK. each moved MWh

In 12 months, 8 GWh has been moved - equivalent to the household consumption of 2000 households

Melting of scrap - iron is a very energy-intensive

Melt in batch - each furnace

Melt independent from production - casting process

Can store the liquid iron in "thermo pot" production offset of 140 ton / day

We melt about 10 tons in 75 minutes and consumes 6,200 kWh, the liquid iron is 1500 gr.

Which processes

Melting Capacity

Melting takes place in induction furnaces (as with general induction hob at home!) The capacity is 38 ton per hour or 800 ton per. day. 94% pure scrap and remaining 1-1200 ton of pig iron

2 X 8 tonnes Medium frequency melting furnaces

1 x 12 tonnes Medium frequency melting furnaces

3 x 12 tonnes Main frequency melting furnaces

2 x 60 tonnes Holding furnaces

1 x 90 tonnes Holding furnaces

Every day at. 13:15 we will send out next day, electricity

hourly rates

September 5th we had a look from at. 8-9, where we with

the electricity supplier had agreed a maximum price we

would buy for. This means that we did not buy the amount

we would normally consume.

This will be communicated to the production, which then

organizes production thereafter.

In the beginning there was a lot of communication - verbal

about achieving the results

It did not bring the expected results

How

Every day, follow-up is

made on yesterday's

consumption patterns in

relation to the price

fluctuation of the day.

A quick feedback -

knowing whether you've

performed well or less

well - is very important

for motivation.

How

how

The result

becomes

evident when

collecting data

for example 6

month .

4000,0

5000,0

6000,0

7000,0

8000,0

9000,0

10000,0

11000,0

12000,0

13000,0

14000,0

0,00

0,05

0,10

0,15

0,20

0,25

0,30

0,35

0,40

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

6 Month - Januar - Juni 2017 Hvid kurve er kr./KWh Gsnit for perioden

Røde kurver er forbrug i KWh måned

DKK / KWh kWh

Our supplier of electricity

What's up for now!

There are many options

Fixed Price

Disturbance of purchased profile

Reduction of purchases at high prices

Here at the latest we have worked well to improve our profile and the possibilities there

The historical data has been processed, and it is clear how we have improved us in changing

the consumption pattern.

Future – after IEP

After CLEAN no longer delivers results of our efforts, we will

continue unchanged

Send daily prices for production

See if there are hours to respond directly to

The IEP project has contributed a lot, most of all focuses on electricity and the many

options - focusing on the point of consumption

Consumption Profile - Economy, and thereby a greener profile!

I am convinced that many companies could change their consumption profile.

In Denmark, the main part of the electricity bill is taxed.

For the community, the results would be better if politicians chose to look at the many

taxes, and with these instruments ensure industry could become competitive by consuming

electricity - when enough and the price was low. The hours when the electricity grid is not

used as much should be with reduced tax

Udbytte!