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Pathways to

a Smart Grid

Dr. Udo Niehage


Group President

Power Transmission
and Distribution Copyright © Siemens AG 2007. All rights reserved.
Electrical energy is the backbone of our society

Slide 2 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Future grids require more flexibility

Integration of Increasing distance


Increased energy Increasing short-
distributed energy between generation
trading circuit currents
resources and load

High supply Fluctuating infeed


quality along with
greater network
complexity and
vulnerability Cost pressure

Aging Legal &


infrastructure and regulatory
lack of experts framework

Drivers for flexible and (cost)-efficient grids


Slide 3 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
The Siemens Smart Grid Vision
is driven by customer benefits

Technical Implementation (Examples)


Smart Grid means …
Transmission Grid Distribution Grid
§ Wide Area Monitoring § Smart Meters
Improved § Condition Monitoring § Distribution
Automation
Observability
Drivers

§ Increased use of § Demand Side


Improved power electronics Management
§ Distribution
Controllability
Automation

Improved
Utility IT solutions
Process efficiency

Slide 4 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Pathways to a Smart Grid

Movement from static infrastructure to a flexible power grid with enhanced


observability, controllability and process efficiency.

Transmission
From To
Manual reaction to critical Blackout prevention by increasing the situational
network situations • awareness and automated counter measures

Primary equipment condition Condition monitoring for controlled overload of


not well known ‚ bottlenecks and reliability centered asset managem.

Limited control of Power flow control and transmission capacity


power flow
ƒ increase by using power electronics

Central generation, Integration of distributed generation and storage


Distribution
decentralized consumption by virtual power plants

Unmanaged, not transparent


consumption
… Smart metering and load management

Slide 5 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Pathways to a Smart Grid

Movement from static infrastructure to a flexible power grid with enhanced


observability, controllability and process efficiency.

Transmission
From To
Manual reaction to critical Blackout prevention by increasing the situational
network situations • awareness and automated counter measures

Primary equipment condition Condition monitoring for controlled overload of


not well known ‚ bottlenecks and reliability centered asset managem.

Limited control of Power flow control and transmission capacity


power flow
ƒ increase by using power electronics

Central generation, Integration of distributed generation and storage


Distribution
decentralized consumption by virtual power plants

Unmanaged, not transparent


consumption
… Smart metering and load management

Slide 6 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Future Energy Management Systems systems will have
to handle complex situations much better than today

By clear decisions
Supplement the message
reports
2000 MW
Pump Load
OFF

The grid dispatcher has to decide within seconds.


Wrong decisions or inactivity may lead to Blackouts.
Slide 7 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Pathways to a Smart Grid

Movement from static infrastructure to a flexible power grid with enhanced


observability, controllability and process efficiency.

Transmission
From To
Manual reaction to critical Blackout prevention by increasing the situational
network situations • awareness and automated counter measures

Primary equipment condition Condition monitoring for controlled overload of


not well known ‚ bottlenecks and reliability centered asset managem.

Limited control of Power flow control and transmission capacity


power flow
ƒ increase by using power electronics

Central generation, Integration of distributed generation and storage


Distribution
decentralized consumption by virtual power plants

Unmanaged, not transparent


consumption
… Smart metering and load management

Slide 8 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Reliability Centered Asset Management for
T&D equipment

100%
EENS share per component

Contribution of
90%
•Inspections
80%

70% each component to


60%

50%
transformers

overhead lines

system reliability •Operational data


cables
•Monitoring data
40%
66 kV bus bars

66 kV nodes
11 kV nodes

30%

20%
(„Expected Energy not
10%

0%
Network Components
supplied“) •etc.
Importance Condition

condition

Source: Siemens PTD SE, Kaiser / PTD TI, Menke, 12/2006


importance

Prioritization
Prioritization and
and
§ strategy
strategy development
development

Boundary Business
Business strategy
strategy
Boundary conditions
conditions
Reliability Centered Asset
Rules
Rules
Management Strategy
Slide 9 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Transformer Monitoring for Hydro Quebec
Substation 1 Substation 2 Substation 3

Wireless Wireless Wireless

Utility

Siemens Minneapolis Data Center Peak load transmission at


Application
Server WEB Server
low ambient temperatures
Communication
Server

FireWall

Utility
Remote Desktop
session over the Web

Slide 10 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Pathways to a Smart Grid

Movement from static infrastructure to a flexible power grid with enhanced


observability, controllability and process efficiency.

Transmission
From To
Manual reaction to critical Blackout prevention by increasing the situational
network situations • awareness and automated counter measures

Primary equipment condition Condition monitoring for controlled overload of


not well known ‚ bottlenecks and reliability centered asset managem.

Limited control of Power flow control and transmission capacity


power flow
ƒ increase by using power electronics

Central generation, Integration of distributed generation and storage


Distribution
decentralized consumption by virtual power plants

Unmanaged, not transparent


consumption
… Smart metering and load management

Slide 11 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Power electronics for power flow management

DE CZ

Conventional grid:
Power flow
“according to
Kirchhoff’s law”

DE CZ

“Smart Grid”:
Power flow
controlled by power
electronics

Slide 12 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Advanced Power Transmission Solutions
with HVDC and FACTS (Flexible AC Transmissions Systems)

North
North System
System
50
50 Hz
Hz
Power Exchange Central
Central System
System
– Asynchronous 60
Tariff Networks 60 Hz
Hz

voltage
Avoidance of
Loop Flows
~
control

Submarine
Cable Link
Clean &
Low Cost
Energy

Bulk Power &


Long Distance

Submarine
Cable Link
Power
Exchange
Tariff

South
~
South System
System
60
60 Hz
Hz

Symbols:
DC Transmission
& Interconnection Series compensation Parallel compensation

Slide 13 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
HVDC for remote hydro power in China

§ Sole solution to use


hydro power from
Yunnan in the Pearl
River delta.
§ HVDC with the
world’s highest power
capacity ever:
5000 MW across
1400km
§ World’s first
800kV HVDC
Enabled CO2
abatement:
32.900.000 t/a
Slide 14 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Pathways to a Smart Grid

Movement from static infrastructure to a flexible power grid with enhanced


observability, controllability and process efficiency.

Transmission
From To
Manual reaction to critical Blackout prevention by increasing the situational
network situations • awareness and automated counter measures

Primary equipment condition Condition monitoring for controlled overload of


not well known ‚ bottlenecks and reliability centered asset managem.

Limited control of Power flow control and transmission capacity


power flow
ƒ increase by using power electronics

Central generation, Integration of distributed generation and storage


Distribution
decentralized consumption by virtual power plants

Unmanaged, not transparent


consumption
… Smart metering and load management

Slide 15 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Virtual power plants to manage
distributed energy resources

EEX-
Leipzig

n Optimized combination and capacity utilization of


distributed small power plants

n Allows SaarEnergie to participate in energy trading


via the German-based
European Energy Exchange (EEX)
Slide 16 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Pathways to a Smart Grid

Movement from static infrastructure to a flexible power grid with enhanced


observability, controllability and process efficiency.

Transmission
From To
Manual reaction to critical Blackout prevention by increasing the situational
network situations • awareness and automated counter measures

Primary equipment condition Condition monitoring for controlled overload of


not well known ‚ bottlenecks and reliability centered asset managem.

Limited control of Power flow control and transmission capacity


power flow
ƒ increase by using power electronics

Central generation, Integration of distributed generation and storage


Distribution
decentralized consumption by virtual power plants

Unmanaged, not transparent


consumption
… Smart metering and load management

Slide 17 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Generation and load in a dynamic equilibrium

Energy trading
Power flow
reversal Replace oil by
Fluctuating infeed wind power

€(t)

Cooling
Plug-in Hybrids Heat pumps
units

Slide 18 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Example 1:
Internal combustion engine vs. electric motor

Internal combustion engine


⇒ Total efficiency: gasoline: approx. 18%, diesel: approx. 22%

Electric motor
• Efficiency of a combined cycle power plant: 58%
• Additional transmission losses: 5%
• Li-ion battery losses: 14%
• Efficiency of engine and drive: 80%
⇒ Total efficiency: 38%

Slide 19 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Example 2:
Use of fossil fuels to generate heat

• Efficiency of gas-fired condensing boiler 100%


⇒ Total efficiency: 100%

• Efficiency of a combined cycle power plant: 58%


• Additional transmission losses: 5%
• Seasonal performance factor of heat pumps: 3.5
⇒ Total efficiency: 193%

Slide 20 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
The replacement potential is significant

Energy consumption of private households in Germany 2002

domestic hot water lighting


1%
8%
appliances
8%

53% heating

30%
car

Source: VDEW

Slide 21 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Increasing electricity usage means
reducing CO2 emissions

Energy-related CO2 emissions in Gt CO2 (segments in %)

38.9 38.0
36.1

41 41
26.3 46 24.5 23.8
21.9
Power
41 30 30
sector 34

59 59
Other 54 70
59 70 66
sectors

2005 Most likely Most likely H2 Most likely Blue Sky 2030 Blue Sky H2 Blue Sky
2030 2030 Electric 2030 2030 Electric 2030

Source: Siemens E&EC Team, Reference scenario Extreme climate protection scenario
PG GS4
“Most likely” "Blue sky"
§ Accelerated penetration of electric power in § Substitution of energy carriers by hydrogen
Electric: transportation, residential, industrial sector H2: § Pre-requisite: Technological breakthroughs for
§ Replacing direct use of fossil fuels hydrogen and fuel-cell technologies
Slide 22 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution
Electrical energy is the backbone of our society

Slide 23 8.11.2007 Dr. Udo Niehage Copyright © Siemens AG 2007. All rights reserved. Power Transmission and Distribution

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