Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Contents
26 Project Update
32 Diary
32 Ad Index
Why Europes energy market development needs innovation incentives - P6
Credit: Fotolia
Features
14 Smart cities: Innovating urban energy
2 Three questions on the future of energy The 21st century energy model is a data-driven, multi-
As part of its World Energy Outlook released in November, directional, market-based platform where the divisions
the International Energy Agency posed key questions over between producer, distributor and consumer are blurring.
the current and future global energy landscape.
On the cover
Cover design: Samantha Heasmer
Three questions on
the future of energy
As part of its World Energy Outlook released in November, the International Energy
Agency posed key questions over the current and future global energy landscape.
global energy intensity decreased by 1.8 per expansion of cleaner energy sources in global
1.8 per cent per year to 2040, which it calls practice the energy system has a great deal
a significant achievement given that of inertia.
GDP growth is concentrated in emerging Light bulbs and office equipment might
economies, where economic activity is still be replaced every few years, but the lifetimes
relatively energy intensive. But the net result of vehicles, factories, power plants and
is still a stubborn upward trend in global buildings are much longer, and each bit
demand for energy. of infrastructure locks in certain patterns of
Primary energy demand in most advanced energy use. So, in the absence of a concerted
economies is set to fall over the coming policy push or a dramatic change in relative
decades: despite pockets of growth such as prices, the positions of the different fuels and
Are there limits to growth for renewables?
Mexico, the net trend for OECD countries as technologies in worldwide energy use tends to Credit: National Grid
a whole is that they consume less energy in be fairly stable.
2040 than they do today. According to the IEAs projections in what
But this is more than offset by increases it calls its New Policies Scenario, coal is not yet nuclear power is reintroduced: China and the
elsewhere, with rising incomes, industrialization in terminal decline but growth is anaemic at Middle East are the largest sources of growth.
and urbanization and rising levels of energy only 0.2 per cent per year to 2040, providing But, in the face of strong competition and
access proving to be powerful spurs scant relief for the 80 per cent of Chinese coal saturation effects in some mature markets,
for consumption. China has had a huge companies that were reportedly losing money the IEA stresses that the natural gas industry
influence on global energy trends since 2000 in 2015 or the firms accounting for half of US has to work hard to secure new outlets for its
and continues to be the largest single source coal production that were under bankruptcy product. Gas prices rise steadily in all regions
of global demand growth until the mid-2020s protection in mid-2016. as the current supply overhang is absorbed.
in the IEAs projections, when it is overtaken by The reason that coal demand continues According to the IEA, by 2025, in gas-
India. to rise at all is due to robust demand growth importing countries in Asia (in the absence
But even as energy demand growth in India and southeast Asia where readily of carbon pricing) new gas plants would be
slows in China, other countries in South and available coal is difficult to ignore as an a cheaper option than new coal plants for
Southeast Asia, along with parts of Africa, the affordable solution to fast-growing energy baseload generation only if coal prices were
Middle East and South America where energy needs. This offsets rapid declines in coal use in $150/tonne.The space for gas-fired generation
demand per capita is low today, take on a North America and the European Union. is also squeezed in many markets by the rising
more prominent role in pushing global energy More so than for any other fuel, it is China share and falling costs of renewables. Gas
demand higher. still by far the largest coal producer and demand for industry increases more quickly
consumer that holds the keys to the global (at 2.1 per cent per year) than for power
coal balance. The structural economic shift (1.3 per cent); the fastest growth (3.4 per
low rates of growth in electricity demand and storage hydro), utility scale storage offers
very strong decarbonization goals, the desired promise especially once costs come down
pace of change may exceed the natural rate to accommodate supply and demand
at which existing capacity is retired. mismatches.
There is no technical barrier to early Another approach is to induce flexibility
retirement of existing assets, but the political on the demand side, either by moving
challenges can be a different matter and early consumption in time without affecting the
Readily available coal is difficult to ignore
retirement comes with a cost: an increase in total electricity demand (e.g., shifting the use
Credit: WCA
the amount of overall investment or, in some of a washing machine or the charge of an
The gradual removal of contractual instances, a claim for compensation for lost electric vehicle to a different time period), or
restrictions, such as destination clauses, income. by interrupting demand at short notice (e.g.,
also eases the emergence of a globalized Second is the impact of variable stopping industrial production for a given
gas market in which prices are increasingly renewables on the operation and reliability of amount of time) or adjusting the intensity
determined by the interplay of gas supply and the power system as a whole. At low shares of of demand for a certain amount of time
demand. penetration in the power mix, wind and solar (e.g., reducing the thermostat temperature
In the case of nuclear, even though one- PV are unlikely to pose significant challenges. of space heaters or air conditioners to lower
sixth of the global nuclear fleet is retired in Yet, the deployment of such technologies electricity demand at that time).
the next decade (80 per cent of this in OECD requires a significant upgrade in technical, A judicious mix of these solutions can allow
countries), overall prospects are buoyed by institutional, policy and market design, for very high shares of variable renewables in
large new build programmes in a select group collectively known as system integration power systems, while reducing curtailment to
of countries led by China, Russia and India. measures. negligible levels below 2.5 per cent of their
The largest expansion in the primary In the absence of these measures to annual output in 2040. System integration
energy mix comes, unsurprisingly, from increase the flexibility of the system, there measures provide the essential enabling
renewables. But... is a risk that wind or solar capacity would mechanism for high growth of renewables.
face significant curtailment during times In the end-use sectors, there is a mixture
of abundant generation, which could of barriers that impede rapid growth in
Any power system in which wind and policies that can help renewable heat
Renewable energy is the major growth story in solar PV installations face a regular risk of technologies achieve full commerciality are
the IEAs World Energy Outlook 2016. having their production curtailed is taking much less widespread than those supporting
The attention to renewables is typically an expensive and inefficient route towards renewables-based electricity.
focused on their place in the power sector, decarbonization. Not all sources of renewables for heat offer
but renewable resources are also used in end- Flexibility, in power system terms, is the range of heating temperatures demanded,
use sectors to meet heat demand and as a traditionally associated with generators that especially in industry. But there is still scope for
transport fuel. Use for heat can either be direct can change their output very quickly (typically further penetration of solar thermal heating for
(from bioenergy or solar thermal, for example) reservoir hydropower or gas-fired plants). But use in the residential or services sectors or in
or indirect (via renewables-based electricity or there are multiple potential sources of flexibility low-temperature applications, such as textiles
heat from combined heat and power plants). that can be exploited to shift the timing of and food processing.
Use in the transport sector is as biofuels, mainly the demand or of the delivery of supply Bioenergy offers a wider range of heating
for road transport. in order to accommodate large shares of temperatures, although logistics and supply
To the extent that renewables in the power renewables. chain problems could emerge as a constraint
sector test the limits of growth, they do so for Markets can be designed in a way that on large-volume consumption. Research
two reasons. First, particularly in countries with incentivize investment in locations and and development is still essential to bring
technologies that offer the best value to down costs and to open up new areas for
the system as a whole, i.e., are capable of growth, for example solar thermal heating for
delivering power at times of day and in places medium-temperature industrial applications,
when it is particularly needed. Strengthening or renewables-based cooling systems for
the network or integrating with neighbouring buildings and industry.
systems make it possible to aggregate
output over a larger area, helping to smooth OECD/IEA 2016 World Energy Outlook, IEA
fluctuations that might occur in individual Publishing. Licence: www.iea.org/t&c
locations.
Large new projects improve nuclears prospects Although its use has been limited so Visit www.PowerEngineeringInt.com
Credit: WANO
far (with the partial exception of pumped for more information
CMI Energy
hrs@cmigroupe.com www.cmigroupe.com/energy
energy.llc@cmigroupe.com
Tel. +32 4 330 22 41 For more information, enter 2 at pei.hotims.com
Innovation,
incentives,
integration
The new energy market development requires innovation incentives for
distribution systems operators, writes Hans ten Berge
I
nnovation is vital to European The growth of distributed generation of regulatory incentives for innovation in
competitiveness in the global economy. presents a challenge for DSOs, especially Europe. The survey showed that regulators
A successful low-carbon energy as it affects their ability to maintain and in 11 out of 20 countries do not offer any
transition depends on new technology, upgrade their grid infrastructure. According specific mechanism to incentivize innovation.
creative business models and innovation to the European Commission, 95 per cent of Moreover, incentives for operational
moving forward. renewable energy sources are connected expenditure (OPEX)-related innovation are
Distribution systems operators (DSOs) will to DSO grids and revenue allowances from only implemented in four out of 20 countries.
face many challenges when large-scale regulated activities in the distribution sector When asked if the regulatory framework fosters
distributed generation will be integrated, are in the order of 62 billion ($64 billion) or hampers innovation, half of the surveyed
with high numbers of electric vehicles (EVs) per year Europe-wide. To keep up the pace, countries mentioned that the regulatory
connected to the grid and prosumers 400 billion worth of distribution network framework rather hampers innovation.
interacting in the market. More active grids investment will be needed by 2020 in Europe. The conclusion of the report was that
will require a more advanced monitoring and Investment in smart grid technology there is a clear positive correlation between
management of the grid, for which innovation such as smart metering, integration of regulatory mechanisms and innovation
technologies are needed. decentralized renewables and Demand Side incentives. In cases where the regulatory
In the future evolution of energy networks Management/Response will allow DSOs framework treats costs for innovation/research
towards a smarter grid concept, DSOs must to become central platforms for the energy & development like any other costs, the system
play an active co-ordinating role between all transition by connecting active consumers, hampers innovation.
market participants, facilitating markets and renewables and flexibility sources. However, it is DSOs play a key role in implementing
services in a neutral and non-discriminatory important to highlight that these investments innovative ideas to improve the functioning
manner. imply a revised asset base, operating costs of electricity distribution networks with the
DSOs will have to position themselves in and revised business models. ultimate goal of benefiting customers.
both existing and emerging fields, notably Because DSOs are natural monopolies
data handling, flexibility and storage, while Regulatory incentives and regulated businesses, they have to
respecting market signals and priorities and In 2016, EURELECTRIC conducted a survey develop innovative concepts under a certain
without interfering with them. among 20 Member States to show the status regulatory framework that incentivizes them.
HIGH PERFORMANCE
innovative projects have to be conducted and, finally, only a few of
these technologies will evolve from the pilot stage to commercial use
on the market.
In order to help DSOs innovate, the implemented specific regulatory
mechanisms should be predictable and stable in the outcome. Electric actuators for the
Regulation that efficiently incentivizes DSOs to engage in active
power plant industry
system management has to consider the changing OPEX and capital
expense (CAPEX) structures, acknowledging the shift from a higher Reliable, powerful, precise control. AUMA
share of CAPEX to OPEX in the deployment of new innovative network offer a large portfolio of actuator and
technologies.
On top of this, regulation has to find the optimal balance between
gearbox type ranges.
using distributed generation and building new infrastructure, and how Automating all types of
to incentivize DSOs to be innovative and find solutions (e.g., for ICT, data
industrial valves
handling, but also system services) in-house or by outsourcing.
As the discussion on the role of the DSO in the future gains Standardised interface for
momentum, it is important to provide DSOs with an updated toolbox various site control systems
with which it can integrate new technologies and operate under
smart(er) grid-oriented regulatory frameworks.
Plant Asset Management functions
Innovation-oriented policies can motivate DSOs to be actively Service worldwide
engaged in the shift towards smarter and sustainable network
management, whilst ensuring the security and high quality of the
distribution service. Therefore, fostering innovation at the DSO level
remains an essential strategy which needs to be pursued in due course.
Discover our solutions for the
Hans ten Berge was Secretary General of European electricity industry power plant industry
association EURELECTRIC for ten years. At the beginning of January he www.auma.com
stepped down and was succeeded by Kristian Ruby, who was previously
Chief Policy Officer for WindEurope.
Visit www.PowerEngineeringInt.com
for more information
For more information, enter 3 at pei.hotims.com
Predicting the
unpredictable
For component suppliers in the global power sector,
it is crucial to know where the industry is headed in
the medium-to-long term and which technological,
regulatory and resource issues are most likely to
affect them. Tildy Bayar spoke with Jose Larios,
President Power & Energy at SPX Flow, about the
changing energy landscape and his companys
strategy to address it
One thing about energy predictions is key critical elements that countries take into
certain: they will be wrong. At least in absolute account. Energy security; emissions policy or
terms and within a specific time window. So public health policy; population growth and
wrote Jos Larios, President Power and Energy the need for infrastructure, in particular for
at global valve and pump manufacturer SPX power generation; and finally, technology
FLOW, on the occasion of the International innovation. Its also very important that power
Energy Agencys (IEA) release of its 2016 projects create jobs and leverage the local
Energy Outlook. supply chain.
However, he continued, the macro In India there is huge population growth,
factors driving [energy sector] predictions a huge infrastructure need, a supply chain
remain very valid. Larios, who is based in installed and a large manufacturing
the US, keeps a close eye on power sector infrastructure available. India could leverage
developments around the world in order its significant nuclear capabilities to build
to align SPX FLOWs business with evolving something like 18 reactors. China is similarly
technology needs. His business designs new developing a number of reactors in a bid to
valves and pumps in a symbiotic relationship tackle emissions concerns.
with its customers, which include the major In Europe, public safety concerns are
nuclear plant developers as well as utilities in seeing a big growth in renewable energy
the coal and gas power spaces. with a lot of subsidies. Whereas nuclear is
PEi spoke with Larios about the changes becoming important for the UK where the
driving the global power sector and the energy security and industry creation issues
corresponding strategies behind SPX FLOWs have become more prominent.
core businesses in the nuclear, gas and coal So if you put all of these countries and
power sectors. approaches together, the share of global
nuclear will increase because of the scale of
the opportunity provided by China and India,
Q: and what the UK wants to develop. Through
What is your view of nuclear powers place technological improvements the sector will Q:
in the global power mix? also grow to be safer than it ever has been. And What are the most pressing concerns for the
with the development of new technologies nuclear power sector right now?
A: like small modular reactors (SMRs) you dont
Each country and region has a different need huge infrastructure projects. SMRs have A:
approach to selecting their own individual the potential to be more efficient and can In nuclear, the most important topic is
power mix, but there are around four to five deploy quickly to more remote places. always public safety for sure. This comes in
Q:
What are your key markets for 2017 and
beyond?
A:
In the nuclear sector, were concentrating on
France and Japan where we are delivering
post-Fukushima safety solutions to both
fleets. Were focusing on fast-growing markets,
notably China where close to 20 plants will be
built as well as SMRs. in terms of pure power generation and also which will require new investments and similar
India is growing significant power in terms of generation attached to oil and technological innovation.
capabilities and is attracting attention gas infrastructure. For example, countries like One drawback of nuclear has always
from foreign investors too, with EDF and Saudi Arabia build significant infrastructure been the huge investment needed for any
Westinghouse announcing projects with the for downstream oil and gas, which requires its government or utility to build a nuclear
Indian government for newer-design reactors. own power generation. power plant, whereas SMRs are a lot more
The UK is investing in developing a new accessible, plus you can deploy them in more
generation of nuclear power and construction remote places. As an equipment provider its
of Hinkley Point C is already underway. Q: exciting to develop new technology and were
In the coal and gas markets, combined How do you see the future for small modular in the early stages of discussions with projects
cycle plants in the US is a big area of focus for nuclear reactors, or SMRs? around the world.
us. The presence of cheap gas gives a huge The key challenge for the nuclear industry
advantage to utility companies that have A: is finding which designs are going to deliver
CCPs as part of their portfolio. We supply all SMRs will not be developed in just one country, on safety, cost, and quick implementation in
types of pumps and valves for that market. but certainly a critical development is the UKs the field. I dont think all of these technologies
We also work a lot in Spain, supplying valves research programme launched with 250 will progress forward, so as an industry well
and pumps in the local power generation million ($307 million) behind it. This is going have to develop them enough to make
market, as well as supplying Spanish EPCs to generate a tremendous amount of interest projects commercially viable.
which are very active building plants in Latin in SMRs and we are part of the discussions
America and other parts of the world. with all players in that space. Meanwhile, Visit www.PowerEngineeringInt.com
Globally, the Middle East is very important China wants to develop more than 20 SMRs for more information
www.perkins.com
For more information, enter 4 at pei.hotims.com
Intellectual
property in the
energy sector
Energy companies may not always be up to date on legal issues
involving the technology they use, and thus may unwittingly be
exposing themselves to allegations of patent infringement, write
Ji Young Park, Spencer Abraham and Salvatore Tamburo
W
ho would have companys proprietary technology and avoid in October 2016, the court enjoined Alstom
thought 10 years ago common pitfalls of such lawsuits. Grid Inc from selling the infringing feature
that utilities would be in Good examples of companies who know without Dominions permission. The court also
the forefront of the third how to protect their technologies are Apple multiplied the jury award in this case based
industrial revolution? and IBM. These high-tech goliaths have been upon the jurys finding that Alstoms patent
Smart meters are developing consumer electronic products, infringement was willful.
here. Solar panels are on rooftops. State energy and patent portfolios covering the products, Dominions lawsuit is one of many patent
law now includes energy storage provisions, for decades in order to prevent anyone from infringement lawsuits now implicating
and automobile manufacturers are working stealing or using their innovative ideas without businesses in the energy sector. For instance,
together with the energy industry to deploy permission. between November 2015 and May 2016,
the next generation of vehicles powered by By securing patents that cover the Atlas IP, LLC, brought patent infringement
electricity. In the midst of all this, utilities are companies proprietary technologies, they lawsuits against multiple utilities, including
working with software providers to manage were able to protect their place in the market PG&E and Florida Power & Light Company.
the smart grid and accommodate the latest against unscrupulous copycats. The situation In its complaint, Atlas IP, LLC alleged that the
renewable energy resources and information is no different for companies in the energy utilities infringed its patent related to a wireless
technology. sector. communication device by communicating
It appears,however,that the energy industry For example, a couple of years ago, data using smart meters.
may not always be up to date on legal issues Dominion Resources Inc secured a patent And with the increased use of information
involving the technology they use, even those to protect its invention related to conserving technology in the smart grid era, what has
technologies that are part of our everyday energy using smart meters. This cutting-edge been a long-time reality for companies in the
operations like Wi-Fi and Bluetooth, and thus technology was invented by Dominions IT sector seems to be bleeding into the energy
may unwittingly be exposing themselves to engineers, and upon recognizing its value, sector: patent infringement lawsuits brought
allegations of patent infringement. Dominion obtained a patent that protects the by non-practicing entities, also known as
As energy companies adopt technologies invention. patent trolls. Atlas IP, LLC, for example, is an
to equip themselves and their clients to take When Alstom Grid Inc, an electricity assignee of a patent once owned by a well-
full advantage of the smart grid, they need to distribution management solution provider, known non-practicing entity in the IT sector,
think about how to protect their homegrown started promoting a software product Wi-LAN Inc. Wi-LAN, for years, brought patent
technologies and protect themselves against that infringed Dominions patent without infringement lawsuits against companies
patent infringement lawsuits. Obtaining the permission, Dominion filed a patent providing consumer electronics devices, such
advice and guidance of counsel is a relatively infringement suit based on its patent. as Apple, Sharp, Ericsson, Samsung, LG, and
simple and inexpensive way to protect a Dominions lawsuit was successful and Toshiba.
A Powerful
infringement notice, speak with a patent litigator who understands the
technology at issue to determine the reasonableness of the patent owners
position.
When a patent infringement is found to be willful, as the trial court
found in the Dominion case, the patent statute allows the courts to
Investment
enhance damages up to three times the amount found by the fact
finder, depending on the degree of egregiousness of the defendants
That Pays Off
behavior. An opinion letter from a patent attorney that the asserted
patent is either not infringed or invalid, and the reasonableness of the Quickly
positions taken by the defendant before a lawsuit is filed, can help
mitigate against a willfulness finding and enhanced damages. Improving access to your plant with rack and pinion
Every patent case is different, and as with many things, the devil elevators from Alimak Hek increases labor efficiency,
is in the details. Still, an overall strategy put into place to protect a reducing the labor required to complete planned
outages and routine maintenance. It also gets the
companys intellectual property and to address a claim for patent
plant back online faster, so utilities can start generat-
infringement can help the energy industry appropriate the full value of ing additional power and revenue sooner.
intellectual property, as both a shield and a sword. Learn more about vertical access solutions from
And the opportunity to benefit from such strategies may come Alimak Hek. Contact us today!
sooner than expected.
Innovating
urban energy
T
his article takes a closer look at challenges and opportunities, compared with
The 20th century energy in cities. Why focus on peri-urban, rural and industrial settings, that
model of centralized cities? First of all, more than half merit investigation into urban energy.
the global population lives in cities, Firstly, dense, mixed use urban forms can
energy production and
and cities account for over half of reduce the unit cost of transport and energy
distribution by a limited global energy consumption and infrastructure and enable adoption of efficient
number of actors is 40 per cent of greenhouse gas emissions, with transit systems and low carbon heating and
evolving into a data- the largest shares going to road transport, cooling networks, but density can also lead to
driven, multi-directional, building heating and building electricity. adverse effects such as urban heat island and
As the global population increases and reduce the availability of renewable resources
market-based platform
the urbanization trend continues, cities will such as solar and wind.
where the divisions become ever more dominant consumers Secondly, cities face dynamic challenges
between producer, of energy and other global resources, and including rapid urbanization, demographic
distributor and consumer their impacts will spread ever wider. The UN change and economic change. Many city
are becoming blurred estimates that 66 per cent of the worlds governments and utility providers struggle to
population will live in cities by 2050, while keep up with the pace of growth, while others
and overlapping, write
another study estimates that the global urban in contracting economies struggle to remain
Alan Thomson and footprint (its physical extent) will triple over the viable while providing even basic services.
Stephen Cook 30 years to 2030, comprising an additional Thirdly, the legacies of existing urban
area of 1.2 million square kilometres. form, buildings and infrastructure tend to
Reducing the impact of urbanization lock in energy consumption patterns and
through increasing urban energy efficiency available sources and vectors of energy. This
and switching to clean, low carbon resources legacy includes complex tenancy and land
is clearly critical for cities to continue to thrive ownership arrangements as well as physical
as engines of economic growth and human patterns of development. Rapid change can
creativity. only occur through highly context-sensitive
initiatives.
City challenges and opportunities Finally, the governance of cities many of
Beyond these headline figures, the physical, which have considerable authority, influence
economic, social and political complexity and budgetary powers can be critical to
of these dense communities creates distinct the design and delivery of locally appropriate,
Transactive energy
Power systems today are undergoing a
profound transformation, driven by the
diversification and decentralization of power
generation, coupled with the emergence
of advanced power electronics which
are capable of managing the increasing
complexity and size of modern power systems.
The technological changes are in turn
Energy solutions for cities need to be highly sensitive to context
driving changes in the ways energy is Credit: National Grid
bought and sold: the 20th-century model of
centralized energy production and distribution
by a limited number of actors is evolving controlled by a central grid operator. distributed energy systems (DES), such as
into a data-driven, multi-directional, market- Instead, the network will migrate to an energy renewable energy, energy storage, microgrids
based platform where divisions between ecosystem which is kept in a state of dynamic and demand management technologies.
roles producer, distributor, consumer are equilibrium through the balancing effect These systems can deliver value both locally
becoming blurred and overlapping. of price signals established by millions of through cost savings and local resilience
This convergence of actors participating participants. The dichotomy of producers and and to the wider grid, through balancing and
in a dynamic energy market is referred to as consumers will evolve into a spectrum of roles load control.
transactive energy (TE). TE is formally defined which includes prosumers which act on both Recent research by Arup and Siemens,
by the GridWise Architecture Council as a sides of the market, along with additional roles for example, indicates that the value to end
system of economic and control mechanisms for ancillary grid services providers such as users of DES investment is significant. Based
that allows the dynamic balance of supply ramping and balancing. on a series of modelled case studies around
and demand across the entire electrical The complexity, density and diversity of the world, operational cost reductions ranging
infrastructure using value as a key operational energy consumption in cities makes them between 8 per cent and 28 per cent and a
parameter. potentially key drivers and major beneficiaries return on investment between three and
Although the idea of a market operating in of the transactive energy model. seven years were observed, compared to a
a dynamic balance in response to supply and In many rapidly growing cities, grid business as usual scenario.
demand signals may appear unremarkable capacity and reliability is a major challenge,
in the context of many other industries, the with grid constraints and supply outages a Delivering efficient buildings
implications for our energy systems are frequent occurrence. Landlords, businesses In developed cities, TE offers a significant
profound. and residents either incur losses (e.g., from prize of a step change in building energy
Today, most grids are kept stable through lower productivity or damage to goods and efficiency. Buildings in the US, for example,
explicit control by a central grid operator, assets) or higher costs to provide on-site consume around 40 per cent of all energy
which controls supply to meet continuously resilience, such as running diesel generators. and 70 per cent of grid electricity. Reducing
changing demand through the dispatch of Such local and ad hoc solutions can have this load is critical to the achievement of
generation assets in accordance with a pre- other adverse impacts such as worsening air carbon reduction targets and is a potential
defined ranking of priority. quality, odour and streetscape clutter. major contributor to economic productivity,
An energy market does operate, but the These same cities have potentially the as businesses reduce operational costs and
market transactions are mostly undertaken strongest value case for leapfrogging to a homeowners increase disposable income.
well before or well after the generation- TE model. A transactive energy system could Applying distributed energy systems within
consumption event. In the short term, demand improve system reliability and efficiency and a transactive energy model allows urban
is generally uncontrollable and unresponsive unlock new investment to meet connected building owners to have better information on
to the cost of supply. areas growing demand, and to extend energy consumption, the tools to control and
The move to a real-time market-based access to those who have no electricity grid reduce energy and the access to a market
model of electricity supply and demand connections at all. which translates the energy savings and
means that system can no longer be Such investments would focus on control investments to financial returns.
A transactive energy model can ensure that energy investment in cities keeps pace with demand
In all cities, the transactive energy model output for each unit of electricity (although Such a rate of transition from petroleum-
could enable integration of the electric multipliers of around three are more typical as based to electricity-based transport will have
grid with heating to deliver even greater average performances across the year). Heat a profound impact on the grid.The impact will,
environmental benefits, lower carbon storage, meanwhile, can be used to smooth however, be greatest on urban energy systems,
emissions and improved energy resilience. peak electric loads and avoid times when grid given that EV penetration will inevitably be
In temperate countries such as the UK, capacity is constrained.Through these means, most concentrated in urban areas, because
energy for heating amounts to almost half of urban heat networks can effectively enable cost and environmental benefits over
final energy consumed, and peak heating a low carbon transition while contributing to conventional petrol and diesel engines are
demand (i.e., on a cold winter evening) is grid balancing through a transactive energy greatest in cities; and EV range limitations are
as much as five times the peak demand of market mechanism. less of an issue in cities, where most trips are
electricity. only a few miles. The shorter range also makes
This heating demand is met today in many Electrification of urban transport EVs more viable for city-based medium-duty
cities almost entirely by natural gas supplied Like heat, the transportation sector appears to vehicles (e.g., delivery trucks and vans); and
directly to buildings, although centralized be on a rapid trajectory towards electrification, urban densities mean that deployment of
urban heat networks have high penetration especially in cities. EV charging infrastructure is more viable in
in some cities in northern Europe and North Although todays stock of road vehicles is cities.
America. Transitioning away from fossil fuel almost entirely made of liquid fuel-powered Transactive energy can provide a critical
heating to renewable and low carbon vehicles, electric vehicle (EV) penetration is means to ensure that generation and
sources will inevitably involve a transition rising rapidly. This is due to a mix of pull factors, distribution infrastructure investment in cities
towards electricity as the main input energy including improving vehicle design, battery keeps pace with the rising marginal demand
for heating systems, especially in cities, where performance and falling prices, and push of energy. TE can also provide price signals
alternatives such as biomass and solar factors including policy support for EVs and to secure premium payments from those
thermal are less suitable, due respectively to restrictions on other fuel types to improve air whose need for recharging may be urgent,
air quality impacts and the density of energy quality. while rewarding those willing to postpone or
demand compared with available roofspace Currently, EVs represent less than 0.1 per spread out their recharge. Vehicle fleets may
for solar generation. cent of total passengers cars in the world, but also be able to capture excess generation in
Cities can enable the electrification of recent research by Bloomberg New Energy low demand periods (e.g., overnight) and so
heat in a way which limits pressure on grid Finance forecasts that continuing reductions increase utilization of wind as renewables take
networks by capturing available heat sources in battery prices will bring the total cost of an ever larger share of the generation mix.
from within cities from ground, air and water ownership of EVs below that for conventional-
but also from sewers, tunnels and other urban fuel vehicles by 2025. The article is part of a paper prepared by
infrastructure and carrying the heat via hot By 2040, Bloomberg projects that EVs will Alan Thomson and Stephen Cook of Arup on
water heat networks to where it is needed. represent 35 per cent of global light duty behalf of the World Energy Council.
In the most cases, with a warm heat source vehicle sales. Such a volume equates to an
and a low-temperature receiving system, heat 11 per cent share of the global electricity Visit www.PowerEngineeringInt.com
networks could deliver four to six units of heat demand in 2015. for more information
FACO SpA
via SS. Trinit, 16/a
28040 Varallo Pombia (NO)
Tel. (+39) 0321 968 211
www.faco.it
U
ntil recently, the city of Kotzebue to making every conceivable effort to reduce curtailment. In KEAs case, its wind capacity
in Alaska relied on diesel its dependence on diesel and has invested in of 2.9 MW is almost equal to its peak load
generation for its main power wind energy. of around 3 MW, making energy storage
source. The community of more However, the intermittent nature of the essential.
than 3000 people lies 30 miles wind means that KEA has often had to curtail So, in 2015 KEA commissioned a Saft
north of the Arctic Circle and is wind output and needed solutions to utilize Intensium Max+ 20M ESS to achieve the full
not connected to a transmission grid. the excess wind capacity. This was especially potential of wind by riding through fluctuations
Its electricity cooperative KEA (Kotzebue noticeable during the summer nights when in wind output and time-shifting wind energy.
Electric Association) has made use of wind community loads were low, but could happen In addition, the operator had the goal of
turbines since the late 1990s to hedge against any time of the year. operating in diesel-off mode, where it would
high and volatile diesel prices. This strategy Its a rule of thumb that microgrid operators rely only on the combination of wind and
has brought success: in 2015 its wind turbines can optimize fuel savings without a battery storage for several hours at a time during
enabled KEA to cut its diesel consumption by when penetration (the proportion of the load periods of high wind and low load.
250,000 gallons and save $900,000. that is supplied by renewables at any instant)
Energy is essential to the survival and is below 50 per cent. When penetration rises Why Li-ion?
viability of communities in the far north and above 50 per cent, an energy storage system As a battery technology, lithium ion (Li-ion) has
KEA recognizes the impact of rising diesel (ESS) is essential to maintain grid stability. several advantages for KEA. Firstly, because it
prices its fuel bills rose from $1.5 million to If penetration exceeds 100 per cent, when can react quickly to changing supply and
$6 million between 2002 and 2008. wind power exceeds demand, that same demand, Li-ion is particularly well suited to
To counter such volatility, KEA is committed ESS can shift wind energy to help minimize riding out variations in wind output from
seconds to hours, matching the intermittent detect a sudden drop in frequency, typically
breaks and gusts in wind power. Li-ion resulting from a trip event, they can bypass the
performs predictably over a large number of controller and inject power in 40 milliseconds
charge and discharge cycles. This translates to stabilize the grid.
into a calendar life of 10 years or more. While the ESS power is used for grid
In addition, its high energy density stabilization, its energy capacity enables KEA
combined with the low weight of lithium to time-shift excess wind energy to times with
means that Li-ion batteries are relatively small higher demand or lower wind output.
and lightweight, providing close to 1 MWh of With a year of operation under its belt, KEA
energy in a single six-metre container and with has reported that it is satisfied with progress
a power capability of up to 2 MW. Intensium and the contribution the ESS is making to the
Max containers can also be shipped fully microgrid.The operator is now working towards
assembled and factory tested, thus minimizing enabling fully automatic operation, which is Cold climate maintenance is challenging
Credit: Saft
the work that has to be performed on-site. an essential step in enabling diesel-off mode.
Installation is also straightforward. Saft
delivered the Kotzebue battery as a fully
integrated system with battery modules,
THE BATTERY MARKET IS BOOMING
battery management systems, temperature Saft chief executive Ghislain Lescuyer on transition will consist in managing production
control and safety systems. The ESS includes a the importance of batteries to the energy and consumption, where batteries also play
1.2 MW power conversion system (PCS) and market and the sectors key trends and a role. Batteries will be key in developing
grid connect transformer supplied by ABB, advances: autonomous energies, just as they are
housed inside a generator building. essential in creating smart cities, for airline
Q: Why are batteries so important to the safety, or for communications satellites.
Extreme conditions future?
KEA has worked hard since the 1990s to A: The battery market is booming. Energy Q: Which areas are seeing battery
develop wind infrastructure that works in the storage can be found at the intersection applications today?
harsh conditions of the Arctic. Maintenance of several macro trends that are changing A: Batteries are everywhere, covering all
can be very challenging or even impossible the world as we know it. Whether it is markets. Traditional applications such as
when temperatures drop to -50C and annual industrialization and urbanization in those for rail and aviation are evolving.
snowfall exceeds one metre. Equipment must emerging countries, increased mobility, In addition, new applications are arising
be extremely rugged to operate reliably. greater global interconnections or in such areas as renewable energy, data
Saft designed KEAs battery container with renewable energy, there is a need for centres and vehicles. Environment and
a cold temperature package that combines energy storage. And batteries are a clean, mobility, to name just a few trends, are
advanced insulation material with a hydronic recyclable and high-performance solution. driving these needs. At a scale similar to the
heating coil. The coil uses the same hot glycol digital revolution and parallel to it more
solution that maintains the diesel gensets at Q: What major technological advances and more people and companies need
their operating temperature. are helping meet todays needs? batteries.
Logistics were a challenge as Kotzebue A: Today, electrical storage is possible. Saft
is not connected to a road network. Being began producing batteries a hundred Q: What strategy is needed to meet these
situated to the north of the Seward Peninsula years ago. It has grown from manufacturing challenges?
that reaches out towards Russia, its port non-rechargeable batteries for flashlights to A:Today, all companies need a differentiated
is restricted by sea ice for more than nine learning to charge batteries and increase offer. Safts strategy is to differentiate
months of the year. As a result, the city is only the number of cycles to store more and through quality and innovation, focusing
served by three freight barges per year. Saft more energy to deliver more power. We resources and R&D on high-performance
had to ensure its ESS was on board the last of are now pushing the limits to provide more applications tailored to customers specific
the 2015 barges to meet KEAs milestones for power under more extreme conditions, needs. We must make the most of our
installation and commissioning. using less space and at a lower weight. strengths: we are a world-leading developer
The PCS can deliver continuous power and manufacturer of advanced battery
of 1.2 MW and up to the full 2 MW battery Q: What role do batteries play in the key technologies for industry. With this as a base,
capability for short durations, giving KEA changes that the world is facing? we have a focused roadmap organized by
the ability to stabilize the network if wind A: Take the energy transition. Intermittent market, offering customers the best solutions
generation ramps up or down suddenly. renewable energies require storage to from Safts full spectrum of possible products
Normal wind ramps are handled by the smooth energy output and balance for their own differentiation. In doing so,
ESS controller, which manages charge and electricity generation coming from multiple customers reap the benefits of best practices
discharge and has latency in the region of sources. The real challenge of the energy and economies of scale between divisions.
100 milliseconds. However, when the inverters
INTEGRA
Working towards diesel-off or the fuel savings that KEA is looking at, but temperature package and is part of a solar/ AND ELEC
Early experience has been that the ESS has the performance of the microgrid as a whole, diesel hybrid microgrid.
worked well to optimize wind generation taking into account greater use of wind Colville Lakes 150 inhabitants represent
as part of KEAs microgrid. The system has energy, a drop in fuel bills and maintenance a 150 kW peak and 30 kW base load, which
behaved in line with expectations. savings. was being met by aging generators. In 2015
From a technical and economic point of Adding an ESS can enable an operator to NTPC installed new diesel generation and
view, energy storage has three drivers. The first maximize penetration of renewables but there augmented the existing 50 kW solar array to
is that increasing the usage of renewables will is no single unit that will meet the needs of all bring its output to 136 kW. The ESS implements
reduce the running hours of the gensets. This sites. full-time grid-forming capability and is rated at
avoids curtailing excess wind and smooths One thing to consider when specifying a 200 kW and 232 kWh.
the power output. ESS for a site like Kotzebue is the unique set As for KEA, it is already considering its next
Second, energy storage is being of conditions in terms of wind or solar PV foray into energy storage and will no doubt
incorporated into the KEA demand control surveys, diesel generation and load patterns. build on the experience from its first Li-ion ESS
system to replace diesel peaking units and Its important to use this data to tailor the installation.The operator delivers grid planning
further utilize excess wind capacity. This ESS in terms of its power and energy storage for smaller communities in Alaskas Northwest
reduces fuel consumption and reduces wear capacity. This ensures an optimized total cost Borough. The Alaskan Energy Authority has
and tear on the gensets. of ownership (TCO) that takes account of the funded the deployment of wind power in two
Lastly, energy storage brings potential to microgrid as a whole. outlying communities with a goal of adding
operate in diesel-off mode.KEA is now reviewing In addition, without diesel-based spinning storage using a different grant source.
operation with a view to switching diesel reserve being immediately available, its KEA is also developing 500 kW of solar to be
generators off completely at times during important to specify an appropriate control added to their system that will make energy
summer months when low load coincides with system that can react quickly to sudden storage even more critical. Solar in the Arctic is
strong wind. While the ESS is already allowing changes in generation. viable and NTPC has proved that theres good
KEA to run its diesel generators at optimum solar resource in extreme northern latitudes,
efficiency and maximize wind penetration, Solar microgrid especially during the summer months.
these savings will be enhanced by reducing Saft recently delivered another ESS for an Arctic
the running hours in diesel-off mode. community. Canadas Northwest Territories Jim McDowall is Business Development
Its hard to estimate payback through fuel Power Corporation (NTPC) has commissioned Manager for Saft America.
savings alone, particularly because an ESS is an ESS for its Colville Lake community, where www.saftbatteries.com
essential for grid stability when operating with a single shipping container integrates both
more than 50 per cent renewable generation. the ABB power conversion system and the Visit www.PowerEngineeringInt.com
So its not the investment in the storage alone battery system. That system also has a cold for more information
TECHNICAL
MAKING SENSE
OF POWER
SERVICE
UTILITIE
PLANT
DISPATCHABLE
POWER SYSTEM
THEINTERCONNECTION
ENERGY CLOUD
PLANTS
HYBRID
GRID INTEGRATION
FLEXIBLE GENERATION
DISTRIBUTED ENERGY THE PATH INTEGRATING HEAT
AND ELECTRICITY
ENERGY CLOUD DOWNLOAD OUR FREE
EUROPEAN POWER STUDY
ANCING EMPOWERING
STORAGE CHALLENGE DECARBONIZA
SYSTEM
THE CUSTOMERS
THE
HYBRID PLANTS
RENEWABLES INTERCONNECTION
TEGRATING HEAT PATH TO DECARBONIZATION ADDRESSING
ND ELECTRICITY UTILITIES DISTRIBUTED VOLATILITY
RNET
HINGS
SERVICES
The majority of our attendees plan to do business with exhibitors - be one of them and reach thousands of
buyers, specifiers and decision makers.
Book early to secure a prime location for your booth in 2017 and take advantage of face-to-face
networking opportunities to source new leads and grow your business. Space is filling fast, so dont delay!
RESERVE
YOUR BOOTH TODAY
CONTACT
WWW.POWERGENEUROPE.COM
#POWEREUROPE Presented by:
C
hanging attitudes towards for example, the adoption of mobile power locations and allowing both equipment and
nuclear power plants generation in the short and long term can workers to function safely at full capacity.
(NPPs) are continuing to mitigate the risk of disruption to end users and Often, an island mode approach to
have an impact on the contribute to a more efficient operation. energy is adopted, which sees generation
global utilities industry and Involving energy specialists early in the distributed across the NPP site, creating a
evolving energy mix. process is vital to avoid delays and disruptions more efficient source and reducing the
Nearly 70 reactors are currently under during later stages. However, the true demands overall cost of power production, as well as
construction. However, countries like Sweden, of the project are often not realized until a full minimizing any environmental risks. Providers
Switzerland and Germany are continuing to review has been conducted. The flexibility have a responsibility to deliver reliable and
phase out nuclear generation to an extent of modular power enables generation effective power, but a big part of their role is
that more plants have closed than opened in technology to be tailored to these very specific allowing operators or sub-contractors to meet
recent years. needs, even if they exceed initial expectations. goals and deadlines, which saves costs in the
While the debate continues, the While energy demands continue to long run.
construction, operation and decommissioning grow and more fossil fuel plants and NPPs Similarly, during the decommissioning
of nuclear power plants (NPPs), including close, either as a result of changing political process, adopting modular power can allow
processes that all have their own specific and environmental agendas or because operators to come off-grid earlier and, as a
power needs, is ongoing. theyve reached a certain age, this widening result, save significant costs. Operators are
One key requirement at all stages of generation gap needs to be filled. According charged for access to the grid based on their
the NPP lifecycle is a reliable, efficient and to the Nuclear Energy Institute, one nuclear overall capacity rather than actual demand;
flexible energy source, which modular power reactor will need to be built every year to meet however, once they have decommissioned,
achieves easily. Whether its filling the gap rapidly growing energy demands in the US say, three or four sections (and reduced
during planned or unplanned maintenance, alone. capacity), they can adopt mobile power for
load testing a newly commissioned turbine Mobile power plays an important role the remaining processes.
or substation, or providing ancillary power for before and during the construction process, Modular generation equipment can be
heat exchangers and cooling technology, supporting feasibility studies in often remote rented on a short-term basis to avoid the
Improving reliability
with outsourcing
Increasingly, plant owners
T
ime is money and plant owners asset history which can be used to predict
are looking to outsource the world over aim to maximize failures and enable intervention that minimizes
productivity and minimize costs. repair times.
the major elements of
Central to this objective is In many cases this low level monitoring will
equipment maintenance avoiding unexpected breakdowns be carried out by the on-site engineers, while
in order to improve which can incur huge costs in the data analysis may be conducted by an
reliability and minimize terms of lost production. original equipment manufacturer (OEM) or
downtime, writes Implementing a robust preventative similar product specialist.
maintenance programme is the first of many Once there is an indication that a repair
Sean Lancastle
actions that can be taken to reduce the is required, or a piece of equipment is
incidence of failure. scheduled for a predetermined overhaul,
Depending on the equipment, a number the aim is to implement a strategy that will
of techniques, such as vibration analysis, minimize disruption and return the plant to
thermal imaging, flow measurement and normal operation as soon as possible.
power consumption can be used to indicate Optimizing this process requires
the initial stages of a concern. considerable planning, both in terms of
Recording this data also builds up a useful manpower and spare parts. Specialist
HOST
UTILITY:
3,000+ 75+ 60+ Sub Saharan Africa Free Networking Targeted B2B Matchmaking
Attendees Exhibitors VIP Delegation Receptions Service
Owned & Produced by: Presented by: Supported by: Supporting Association:
www.powergenafrica.com
For more information, enter 8 at pei.hotims.com
MAY
PRAGATI MAIDAN,
NEW DELHI, INDIA
www.power-genindia.com
www.power-genindia.com
Ad Index
ALIMAK HEK AB 13 PERKINS ENGINES COMPANY LTD 11
ATLAS COPCO PORTABLE ENERGY DIVISION C2 POWER-GEN AFRICA 29
AUMA RIESTER GMBH 7 POWER-GEN EUROPE 21
BABCOCK & WILCOX CO C4 POWER-GEN INDIA 31
CMI ENERGY 5 POWER-GEN NATURAL GAS C3
FACO SPA 17
PennWell Global Energy Group, The Water Tower, Gunpowder Mill, Powdermill Lane, Waltham Abbey, Essex EN9 1BN, United Kingdom.
Phone: +44 1992 656 600 Fax: +44 1992 656 700 Web: www.PowerEngineeringInt.com
Publisher Heather Johnstone peinews@pennwell.com Chief Editor Kelvin Ross peinews@pennwell.com Associate Editor Nigel Blackaby peinews@pennwell.com
Production Editor Richard Gibson Design Samantha Heasmer Production Daniel Greene Group Publisher Rich Baker
Advertisement Sales Manager Tom Marler tomm@pennwell.com
Corporate Headquarters PennWell Corporation, 1421 S. Sheridan Road, Tulsa , OK 74112 USA. Phone: +1 918 835 3161 Fax: +1 918 831 9834
Chairman Robert F. Biolchini Vice Chairman Frank T. Lauinger President and Chief Executive Officer Mark C. Wilmoth Executive Vice President, Corporate Development and
Strategy Jayne A. Gilsinger Senior Vice President, Finance and Chief Financial Officer Brian Conway
Sr. VP Audience Development and Book Publishing June Griffin Magazine Audience Development Manager Jesse Flyer
For Assistance with Marketing Strategy or Ad Creation, Please Contact:
PennWell Marketing Solutions Vice President: Paul Andrews. Phone: +1 240 595 2352. Email: pandrews@pennwell.com
Subscriber Customer Service: PO Box 3264, Northbrook, IL 60065-3264, USA. Customer Service Phone: +1 847 559 7330. Fax: +1 847 763 9607. E-mail: pei@halldata.com
Power Engineering International, ISSN 1069-4994, is published eleven times a year by PennWell Global Energy Group, Copyright 2017 by PennWell Corporation, 1421 S. Sheridan Rd.,
Tulsa, OK 74112, USA. All rights reserved. Subscriptions/circulation and reader enquiry office: Power Engineering International, PO BOX 3264, Northbrook, IL. 60065-3264, U.S.A. Paid annual
subscription rates: Worldwide $62 Digital Version. E.U. $178, No. America $220. United Kingdom $147. All other countries $220. Single or back copies: $26 for all regions.
Reprints: If you would like to have a recent article reprinted for a conference or for use as marketing tool, please contact Rae Lynn Cooper. Email: raec@pennwell.com.
USA circulation only: Power Engineering International,Periodicals POSTAGE PAID at Rahway NJ. Subscription price is $210 Periodicals Postage Paid at Rahway NJ. Postmaster send
address corrections to: Power Engineering International, C/O Mercury Airfreight International Ltd. 365 Blair Road, Avenel, NJ 07001. Power Engineering International is a registered
trademark of PennWell Corporation. POSTMASTER: Send address changes to Power Engineering International, PO BOX 3264, Northbrook, IL. 60065-3264. U.S.A. Member American
Business Press Business Publications Audit3 Printed in the United Kingdom GST No. 12681315
#PGNG2017