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Lessons learned from
European research FP5 projects
Towards Smart
Power Networks
EUR 21970
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EUROPEAN COMMISSION
2005 Sustainable Energy Systems EUR 21970
Lessons learned from
European research FP5 projects
Towards Smart
Power Networks
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List of abbreviations 03
Foreword 05
Introduction 07
Power quality, reliability and security 09
ICT builds Smart Electricity Networks 16
Laboratory activities and pre-standardisation 20
Pilot Installations and eld tests 24
Socio-economic issues 28
Further RTD activities 32
List of FP5 projects 36
List of abbreviations
CENELEC European Committee for Electrotechnical
Standardisation
CHP Combined Heat and Power
DER Distributed Energy Resources
DG Distributed Generation
DSO Distribution System Operator
ERA European Research Area
EU European Union
FACTS Flexible Alternating Current Transmission
Systems
FP European Framework Programme for RTD
HV High Voltage
HVDC High Voltage Direct Current
ICT Information and Communication Technologies
kbit/s communication speed unit,
kilobits per second
LV Low Voltage
LSVPP Large-Scale Virtual Power Plant
MV Medium Voltage
NGO Non-Governmental Organisation
OECD Organisation for Economic Cooperation
and Development
R&D Research and Development
RES Renewable Energy Sources
RTD Research and Technological Development
SGAD Smart Grid Automation Device
SME Small and Medium-sized Enterprise
TSO Transmission System Operator
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Contents
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Acknowledgments
This brochure has been prepared with the contribution
of the research team involved in the EU-Cluster IRED:

Jrgen Schmid and Philipp Strauss, ISET - Germany

Nikos Hatziargyriou, NTUA - Greece

Hans Akkermans, EnerSearch - Netherlands

Britta Buchholz, MVV - Germany

Frits van Oostvoorn, Martin Scheepers,
ECN - Netherlands

Ral Reyero, IKERLAN - Spain

John Chadjivassiliadis - Greece
04
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Foreword
Foreword
European energy research is helping to transform the
energy system into one which will be more sustain-
able and more compatible with the ecosystem. Within
this framework, energy research is a key factor for
the development of a sustainable European economy
in the context of the Lisbon Strategy, a major prior-
ity for the European Union which is intended to boost
competitiveness, job creation, social cohesion and en-
vironmental sustainability.
Wind generators, fuel cells, photovoltaic panels and mi-
cro-turbines to mention just a few are new forms of
electricity generation currently being developed. They
make up the so-called Renewable Energies and Distrib-
uted Generation; some of which are small or medium-
sized, while others are intermittent or even stochastic.
Today, wind power and Combined Heat and Power are
reaching a competitive level with the traditional forms
of energy generation. Maybe tomorrow we will be talk-
ing about micro-turbines, fuel cells and photovoltaics.
This brochure describes the lessons learned from
around 50 research projects under the Target Action
Integration of renewable energies and distributed
generation into European electricity networks, in the
EUs Fifth Framework Programme (FP5). These projects
are seen as the starting point for the development of
the rst generation of components and new archi-
tectures for interactive electricity grids. Among them
is the EU cluster IRED, which gathered the efforts of
more than 100 participants. It was launched at the
beginning of 2001 to coordinate and disseminate the
new knowledge generated among the partners them-
selves with national programmes active in this area, as
well as stimulating relations with similar partnerships
worldwide.
Many projects in this FP5 Target Action started in 2001
and have achieved their initial objectives very success-
fully. Activities in this area are continuing in FP6 through
very promising large Integrated Projects and Networks
of Excellence, in which more and more utilities and oth-
er stakeholders in the electricity sector usually com-
petitors in the international market are showing their
readiness to share know-how and effort.
Achieving maximum European research power requires
the development of common and coherent views
among stakeholders. The setting up of the Technology
Platform for the Electricity Networks of the Future in
2005 is one way of answering this need. A Strategic
Research Agenda is also under preparation which in-
cludes the RTD priorities for the future.
Finally, present discussions for energy research in FP7
have identied a research area, referred to as Smart
Energy Networks, as a means of continuing current
RTD efforts at European level. The initial objectives of
this new area are To increase the efciency, safety and
reliability of the European electricity and gas system
and networks, e.g. by transforming the current elec-
tricity grids into an interactive (customers/operators)
service network, and to remove the technical obstacles
to the large-scale deployment and effective integration
of distributed and renewable energy sources.
The challenges of this research area are very ambi-
tious, but the expected contribution to the integration
of Renewable Energies and Distributed Generation in
the electricity grids could lead to very important socio-
economic benets.
Pablo Fernndez Ruiz
Director
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Towards Smart Power Networks
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Introduction
Introduction
Energy research in the EU
Framework Programme
Today, Europes energy supply is characterised by
structural weaknesses and geopolitical, social and
environmental shortcomings, particularly as regards
security of supply and climate change. Whilst energy
remains a major component of economic growth, such
deciencies can have a direct impact on EU growth,
stability and the well-being of Europes citizens.
These three elements provide the main drivers for
energy research, within the context of sustainable
development, a high-level EU objective that links
economic development, protection of the environ-
ment and social justice.
Energy, at the root of all human activity, holds the key
to reconciling these often opposing dimensions. De-
veloping and making better use of clean energy tech-
nologies, by investing in R&D, will help to meet the
Lisbon and Gteborg objectives and to reinvigorate
and modernise our economy by contributing to tech-
nological innovation, increasing European competi-
tiveness, unlocking vast potential global markets and
thus creating wealth and new, skilled jobs.
In helping to meet these goals, which are by no means
exhaustive, energy research will contribute directly to
the success of EU policy and, in particular, the achieve-
ment of current EU targets, which will need to become
even more ambitious when looking towards 2020,
2030 and beyond. For example: achieving an 8% reduc-
tion in greenhouse gas emissions from 1990 levels by
2008-2012 (Kyoto); increasing the share of renewable
energy systems (RES) from 6% to 12% of gross energy
consumption by 2010; increasing the share of electric-
ity from RES to 21% of gross electricity consumption
by 2010 (from 14% in 2003); increasing the share of
liquid biofuels to 5.75% by 2010; and reducing energy
intensity by a further 1%/year until 2010.
FP5 research projects
for integration of DER
Projects in this area of FP5 are helping to dene and
validate new system architectures and advanced
components for future European electricity networks
based on a large share of DER, while maintaining the
high level of reliability and quality in the present net-
works. The FP5 projects which were supported nancial-
ly were sorted into the following Research Priorities:
New approach for large-scale implementation of
DER in Europe Future electricity networks require
novel concepts and systems for their planning, de-
sign, monitoring and control architectures. The main
objectives of projects in this Research Priority were
to design, develop and validate novel architectures,
components and DER solutions needed for future bi-
directional (customers/operators) service networks.
Energy storage technologies and systems for grid-
connected applications The aim of this Research
Priority focused on the development and improve-
ment of cost-effective high-power energy storage
systems based on a wide area of technologies in
grid-connected applications to facilitate the large
penetration of DER.
Development of key enabling technologies required
for interactive energy networks with high power
quality and security of service. This Research Priority
included developments of power electronic devices
and cable systems, high temperature superconduc-
tors (components, devices and systems), and new
Information and Communication Technologies (ICTs)
for distributed energy networks.
Projects nanced under these FP5 areas play a key role
in transforming the conventional electricity transmis-
sion and distribution grid into a unied and interac-
tive energy service network using common European
planning and operation methods and systems.
The achieved results of projects nanced in FP5 in
this area will impact on the three drivers described
above economic growth, security of supply, and cli-
mate change.
The FP5 Cluster IRED
A coordinated effort in this RTD area started a few years
ago with the establishment of a EU cluster of seven key
FP5 projects (http://www.clusterintegration.org or
http://www.ired-cluster.org). The Cluster IRED, with
over 100 partners and a total budget of 34 million
euro, was launched with the aim of coordinating les-
sons learned and new knowledge generated by these
projects with national programmes active in this area,
as well as with similar partnerships in the USA, Cana-
da, Japan and other OECD countries.
The most important elements for the success of IRED are :
Systematic exchange of information by improving
links to relevant research, regulatory bodies, and
policies and schemes at European, national, regional
and international levels.
Setting up strategic actions such as trans-national
R&D co-operation and common initiatives on stand-
ards, test procedures and education.
Identifying the most important research topics in
the eld of integration of DER, and taking actions
to address these.
Lessons learned
The main lessons learned from EU FP5 projects in this
area can be grouped as follows:
The change in emphasis from connecting to in-
tegrating DER into the overall system operation
and its development is critical. This represents
a shift from the traditional, central-control culture
to a new, more distributed control paradigm which
requires that DER can no longer be considered as a
passive appendage to the network.
The electricity networks of the future will be based
to a large extent on new power electronics and ICT
applications, some of which have already been in
use in other sectors of industry for decades. Syner-
gies from these new developments and specic ICT
solutions for the power sector, such as distributed
intelligent control, a new internet generation mod-
el, etc., which are still in their initial stages today,
should be further developed.
Fully integrated DER will have the potential of de-
livering a number of benets for Europe, such as
reduced central generation capacity; enhanced trans-
mission and distribution network capacity; improved
system security; reduced overall costs and CO
2
emis-
sions; and shaping Europes competitiveness world-
wide. However, validation examples of those benets
are needed to satisfy their credibility and acceptabil-
ity to the stakeholders.
Reliability, safety and quality of power are the
main issues linked to the large-scale deployment
of DER. Their effect on European transmission
networks, cannot be neglected and must be ad-
dressed with a comprehensive system approach.
Major technological operation, protection, con-
trol, etc. and regulatory changes will be needed in
Europe to accommodate this new open and unied
electricity service market approach during the com-
ing decades.
Finally, the establishment of the IRED cluster at the
early stage of this FP5 area has resulted in the better
pooling of dispersed resources and expertise and has
enabled the undertaking of more substantial and more
rewarding research initiatives. Under FP5 and FP6, im-
portant projects and actions, several of which are pre-
sented in this brochure, have beneted from improved
information exchange and coordination provided by
the IRED cluster.
Introduction
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09
The EC support budget to projects in this area in FP
5
and FP6
With a budget of almost one milllion euro, projects in the energy area under FP
5
(1998-2002) are
well advanced, with many entering the critical phase of exploiting and disseminating their results.
The total expenditure on European RTD projects for the large-scale integration of Renewable Energy
Sources (RES) and Distributed Generation (DG) within FP
5
is of the order of 130 million euro, with an
EC contribution of about 67 million euro.
The main objective of FP6, which runs from 2002 to 2006, is to contribute to the creation of a truly
European Research Area (ERA). Thematic Priority 6.1 Sustainable energy systems has a total
budget of around 890 million euro. Currently, about 91 million euro matched by public and private
investments, with EU funding of about 50 million euro, has been awarded to RTD projects for the large-
scale integration of RES and DG in FP6.
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Power quality, reliability and security
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Power quality,
reliability and security
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DER and continuity
of electricity supply
Satisfying and responding to customer requirements
is one of the key features of the liberalised electricity
markets. In particular, the continuity of the electric-
ity supply is a major factor for competitiveness, public
health, safety, etc. In the traditional network design
approach, the performance of the medium- and low-
voltage networks has a dominant impact on the qual-
ity of service seen by the end customers, while faults
in high-voltage (HV) distribution and transmission
networks do not normally affect the continuity of sup-
ply for customers connected to medium-voltage (MV)
and low-voltage (LV) networks.
In the majority of EU countries, more than 80% of the
customer interruptions and the customer minutes lost
are caused at one of these voltage levels. The signi-
cant impact that these networks have on the number
or duration of interruptions is primarily driven by the
radial design of these networks. On the other hand,
MV voltage networks are generally built following
so-called n-1 security criteria, meaning that an in-
terruption caused by a fault of a single MV network
component should be restored much more quickly by
switching (manually or automatically, depending on
the size of the load lost) the lost load on to a sound
part of the network. This clearly requires some redun-
dancy in MV networks. Similarly, HV networks are of-
ten built with respect to n-2 security criteria.
Security is the ability of the system to remain in op-
eration after sudden disturbances that may occur,
like short circuits, loss of equipment, etc. It may take
into account any actions causing such disturbances,
such as human errors, extreme weather conditions,
terrorist activity, etc. Another denition that gives a
general sense of what power system planners and
operators might intuitively understand by security is
the art and science of ensuring the survival of power
systems. Security is often measured by determinis-
tic indices that may include the severity of situations
but ignore the likelihood. Examples are percentage
reserve used in spinning reserve assessment, and
the n-1 or n-2 criteria used in transmission oper-
ation and planning (meaning that the system should
continue to function after a loss of 1 or 2 circuits).
System reliability is the ability of the system to satisfy
customer requirements in terms of power and energy,
considering forced outages and the scheduled main-
tenance outages of the systems equipment. However,
the term reliability is very specic in meaning and is
accepted as being dened by a set of probabilistic in-
dices even if only expected (average or mean) values
are reported or predicted. Reported indices include fre-
quency of interruptions, duration of interruptions, an-
nual unavailability, and load and energy not supplied.
Today, a number of indices quantify the system opera-
tional performance, such as the Loss of Load Expecta-
tion (LOLE, hours/year), Loss of Energy Expectation
(LOEE, MWh/year), Expected Demand Not Supplied
(EDNS, MW/year), Frequency of Loss of Load (FLOL,
occ/year), and the Energy Index of Reliability (EIR).
Power quality deals with the phenomena of various
deviations in voltage or current waveform or/and
shifts in phase. These deviations could result in failure
or the mis-operation of customer equipment. The most
important aspect refers to the quality of the voltage
supplied to the customer, and includes both steady
state variations, like voltage regulation, harmonic
distortion and icker, but also disturbances, such as
transients, voltage sags (dips) and swells that could
lead to interruptions of supply (link with reliability).
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One of the potential key benets of DER, being con-
nected at the MV and LV networks, is an increase in
service quality, reliability and security, providing DER
is integrated in an intelligent way in the power system
planning practices (Figure 2.1). However, the overall
approach to system operation and development, and
in particular to provision of security of supply services,
has yet to change, and no real attempt has been made
to integrate DER into system operation. Similarly, DER
developers and operators are principally concerned
with energy production from DER plant and, given the
current incentives framework, are not motivated to
provide any services associated with system security.
DER integration
into operation practices
Levels of DER penetration in some parts of the EU
are such that it is beginning to undermine integrity
and security of the system, especially in the form
of large wind parks. This is because the emphasis
has been on connecting DER to the network, rather
than integrating it into the overall system operation.
It is only recently that transmission grid codes have
started imposing Low (or Zero) Voltage Ride Through
(LVRT) capabilities, voltage support and active power
reserves on the new wind farms, showing a gradual
change in attitude. Nevertheless, the ability of inter-
mittent power generation to displace the capacity
of large conventional (thermal) plant, the increased
exibility in demand and balancing services due to
wind variability, requirements for additional trans-
mission capacity and system support services (grid
codes) have still not been adequately studied, so that
the full exploitation of DER for maintaining high lev-
els of security and reliability can be achieved. New,
advanced tools and methods (on-line, probabilistic,
etc.) are needed to face these challenges.
Similarly, DER at lower voltage levels can take over
some of the responsibilities from large conventional
power plants and provide the exibility and controlla-
bility necessary to support secure system operation.
However, such requirements to support the system in
critical conditions are not requested from DER at the
distribution level, and current operating practices only
ensure that these are promptly disconnected, in case
of disturbances.
0 0 voltae
level
0 0 0 0
00
00 00
5ecurity of 5upply
Central eneration
Medium scale 0fR
5mall scale 0fR
5ecurity of 5upply

Figure 2.1: DER potential to increase security
of supply
Clearly, large penetration of DER has the
potential a displace considerably fraction
of energy produced by large central plant,
but the present passive approach will be unable
to provide the exibility and controllability
needed. Hence, if nothing is done, conventional
large-scale power plants remain the source
of control for electricity operation assuring
integrity and security of the system.
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By fully integrating DER into network
operation, it will be able to displace not only
more expensive energy produced by central
generation, but also to enhance exibility
and controllability in facing critical situations.
To achieve this, the operating practice of
distribution networks will need to change
from passive to active, demanding a shift from
traditional central control philosophy to a new
more distributed control paradigm.
Although transmission system operators
have historically been responsible for system
security, quality and reliability, enhancement
by DER will require system operators to
develop active network management in order
to participate in providing system security.
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Results of DISPOWER project have shown that with
intelligent management, distributed generation can
improve power quality as well as economic operation
(Figure 2.2)
This will present a radical shift from the traditional
central control philosophy to a new more distributed
control paradigm. Such a control paradigm is provided
by Microgrids (Figure 2.3), i.e. systems at LV that can
be operated interconnected to the grid, or in an au-
tonomous way if disconnected from the main grid, pro-
viding continuity of supply in case of upstream faults.
At MV level, the coordination of several Microgrids and
the operation of Virtual Power Plants, i.e. coordination
of several DER so that the full functionalities of central
power plants are obtained, allows DER to take the re-
sponsibility for delivery of security services in co-op-
eration with, and occasionally taking over the role of,
central generation.

Figure 2.3: The Microgrid concept.

Figure 2.2: Online monitoring and operation of
components in the pilot experiences in Stutensee,
Germany.
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Research in Europe:
power quality, security and
reliability enhancement by DER
In FP5, some problems linked to power quality, reli-
ability and security have been studied in the following
projects:
In MICROGRIDS project, a number of innovative tech-
nical solutions for microgrids operation and control,
especially under islanded operation, have been inves-
tigated. It has been shown that the operation of DER, if
managed and coordinated efciently, can provide dis-
tinct benets to the overall system performance. Cen-
tralised and decentralised control techniques, based
on agent technologies, present the microgrid to the
grid as a controlled entity that is operated as a sin-
gle aggregated load. Given attractive remuneration, it
can support the network, providing services such as
a small source of power or ancillary services, when
required or when market conditions favour it. From
the customers point of view, microgrids provide both
thermal and electricity needs and, in addition, have
the potential to enhance local reliability. They can im-
prove power quality by supporting voltage and reduc-
ing voltage dips, and can lower the costs of energy
supply, when compared to spot peak market prices.
Preliminary studies performed on a typical micro-
grid, comprising microturbines, wind turbines, fuel
cells and photovoltaics, have shown similar reliability
indices for an 80% reliable line feeding the microgrid
compared to a 100% reliable feeder without DER and
cost reductions compared to spot market prices on
some days.
In DISPOWER project, a power quality (PQ) manage-
ment algorithm was developed that is able to solve
voltage limit violations in low-voltage grids by optimis-
ing control of generators, storage units and control-
lable loads (Figure 2.4). The algorithm automatically
adapts its behaviour in the light of network perform-
ance by changing its frequency of scheduled tasks and
sensitivity limits without requiring triggering by exter-
nal control. As shown by a variety of tests, the number
of 10-minute periods that voltage exceeds the limits,
is reduced by approximately 80% on average.
tnIermatien netwerk
pewer supp|y grid

P P, cos , 1R0

J
P, cos , 1R0
J
P, cos , 1R0
J
P, cos , 1R0
J
J
Constant-speed
converter:
Wind enery
Rydro power
0enerator sets
variable-speed
converter:
Wind enery
Rydro power
0enerator sets
Micro turbines
0irect converter:
Photovoltaic
1hermophoto-
voltaic
fuel cell
attery
storae with
bidirectional
Converter
flywheel
storae with
bidirectional
Converter
Active pewer (P)
Active pewer (P) +
Reactive pewer cempensatien (ces ) + reductien eI disterstiens (1B0)
J

Figure 2.4: DISPOWER Project developed a power quality management algorithm to avoid exceeding
the voltage band by intelligent load management based on real-time information on the grid status.
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Most DER are interconnected to the power system via
power electronic interfaces. Power electronics pro-
vide several possibilities to enhance power quality by
voltage support in withstanding voltage dips, active
ltering, phase balancing, etc. The development of
new concepts for the management of the quality of
DER-dominated networks, based on FACTS and Cus-
tom Power Technologies, has been investigated in
DGFACTS project. The key innovation is the use of a
set of modular systems to optimally improve the sta-
bility and quality of supply in each electric power dis-
tribution network according to its characteristics and
requirements. Looking at their economic justication,
FACTS can be easily integrated into the network (Fig-
ure 2.5). Specic devices could be also protable in
the near future, especially when the costs of the dif-
ferent network factors causing a lack of reliability will
need to be compensated for.

Figure 2.5: DGFACTS Prototype
Wiring for Central
Photovoltaic (PV)
Inverter Series Changed
Board and measurement
for reactive power
injection implemented
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ICT builds smart electricity networks
ICT builds smart
electricity networks
Universal connectivity
First, ICT creates universal connectivity between a
large variety of grid devices, including power produc-
tion resources, network nodes, and local loads. This
provides new and better technical foundations for
distant control of highly distributed networks on an
increasingly large scale. Universal connectivity is a
key enabler for the proper management of any future
energy network.
Services over the internet and web
Second, ICT provides new ways for real-time interac-
tion between suppliers, distributors, and customers in
the grid. This is due, in particular, to the internet and
web. Timely and high-quality information on the sta-
tus of the grid will become much more readily acces-
sible for all stakeholders. But beyond monitoring, the
internet enables new web services based on two-way
communication between suppliers and customers. Au-
tomated demand response, balancing services, and
dynamic pricing, buying and selling of power in real-
time are just a few of the promising applications to
come in future due to advanced ICT solutions.
Increasing the intelligence
of the grid
The third trend in ICT for power is that new tech-
niques in hardware and even more so in software,
effectively inject intelligence into the grid. The elec-
tricity system inherited from the 19
th
and 20
th
cen-
turies has been a reliable but centrally coordinated
system. With the liberalisation of European markets
and the spreading of local, distributed and intermit-
tent renewable energy resources, top-down central
control of the grid no longer meets modern require-
ments. Tomorrows grid needs decentralised ways for
information, coordination, and control of the grid to
serve the customer. ICT is central to achieving these
innovations.
Research in Europe: making the
critical infrastructures of power
and ICT work together
The networks for both power and ICT are infrastruc-
tures that are highly critical to the functioning of so-
ciety today. Moreover, they have become increasingly
interdependent. The aim of European research is to
make these two critical infrastructures work together
better. The power grid needs to become more intel-
ligent, self-managing, and self-healing. And this must
be achieved in decentralised ways, as we have al-
ready seen in ICT networks the internet itself being
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FP5 projects have demonstrated that:
Established Information and Communication
Technologies (ICT), including the internet and
web, are already capable today of catering for
many of the functionalities of the future elec-
tricity network. However, the European power
sector has not yet reaped all the benets from
the ICT opportunities currently available.
Software agents and electronic markets
are advanced ICT technologies that enable
distributed control of electricity networks and
make the grid intelligent and self-organising.
Further research and technology develop-
ment are needed on issues of interfacing,
integrating and protecting power systems
interlinked with ICT information systems,
in a robust, dependable and standardised
way. This is to be done, for example, in the
context of integrating new concepts such as
the large-scale virtual power plant.
Also, attention must be paid to how to align
the emerging new business and service models
in the European market environment with new
ICT, internet/web, and electrical architectures.
a noteworthy example. This philosophy of achieving
distributed intelligence in the electric power system
is being explored in several European projects.
Distributed intelligence:
agents and electronic markets
Intelligence in the grid involves designing innovative
hardware and software components for the electricity
grid, in ways that cross-cut power and ICT systems engi-
neering. Two such successful advanced ICT technologies
are software agents and electronic markets. Agents are
pieces of software that represent someone or something;
they negotiate with other agents for the allocation of re-
sources and communicate this to the controller software
of the devices represented. Agents are known from web
services, and provide a form of local intelligence. The
use of electronic markets is visible in day-ahead markets
like NordPool in Scandinavia and Amsterdam Power Ex-
change (APX) in the Netherlands. The underlying prin-
ciples can, however, be used in many other settings,
especially if combined with multi-agent technology.
Electronic markets provide automated means of techni-
cal coordination and optimisation in systems with many
diverse components. They are a basis for new forms of
distributed control with global intelligence. An electronic
market game, called Elektra, has been developed in FP5
to enable people to experience how the concept works.
For example, the European project CRISP has led to sev-
eral innovative applications in this area (Figure 3.1).
Supply-demand matching reduces
regulating power needs
One application combines different distributed and
renewable energy resources in a commercial cluster.
Electricity producers and traders have to forecast their
production and consumption, and the forecast of de-
mand and supply must be in balance with the market
as a whole. The transmission system operator (TSO)
compensates deviations that occur in real-time by con-
tracting regulating power. The costs are put on those
parties in the market that deviate from their forecast.
Field experiments show (see also www.powermatcher.
net) that agent-based electronic markets in a local or
regional commercial cluster are able to minimise such
deviations. So, they reduce costs for the market par-
ties as well as the need for regulating power. Massive
implementation of this concept will make the grid and
the electricity markets much more stable.

Figure 3.1: Project CRISP: electronic market experiment for automatic supply-demand matching.
Wind Turbine
Park I
Wind Park II
Residential Heat
Production (CHP)
Cold Store
Emergency
Generator
Test Dwelling
Data
Communications
Networks
Power Matcher
Aggregator
Local
Agent
Local
Agent
Local
Agent
Local
Agent
Local
Agent
Local
Agent
18
19
ICT builds smart electricity networks
Advanced fault detection
and handling
Agents representing a part of the grid are also useful
in fault detection, localisation, isolation and recon-
guration. This has been shown in recent tests with an
agent-based Smart Grid Automation Device (SGAD).
This device interfaces the electrical power system on
the one hand and the ICT-systems on the other hand; it
forms part of a future large-scale virtual power plant, or
LSVPP (Figure 3.2). In FP5, technical concepts for such
a device have been drafted and tested. In a cell of the
grid, messages can be exchanged between devices in a
few tens of milliseconds. Faults can be isolated correctly
in less than 10 seconds, up to one minute, even if data
communication rates are as low as 10 kbit/s. Hence,
this approach can drastically reduce the interruptions
observed today on the distribution system.
Intelligent load shedding
In critical situations, whole areas are sometimes shut
down to prevent overall grid collapse. Measurements
during the blackout in Sweden in August 2003 showed
that technologies and procedures used today some-
times worsen the situation. Automatic tap changers,
for instance, focus on maintaining the voltage level
of the distribution grid. They ignore the fact that this
action worsens the situation for the whole system if
a concurrent voltage drop occurs in the transporta-
tion grid. EU research has produced an intelligent tap
changer that takes into account the voltage level at
the transmission level as well. Such a critical preven-
tion action solution is part of a wider strategy of dis-
tributed load shedding. Here, the action is not on the
circuit breakers of the feeders, but on specic nodes
inside them a solution more exible and effective in
reaching the objective of balancing global production
and consumption. Local agents evaluate the local load
to shed and submit the required actions to their con-
trolled loads and production units so as to meet the
required local power variation.
Many more such advanced ICT-based applications for
the grid and for managing distributed energy resources
will see the light of day in the coming years.

Figure 3.2: The Smart Grid Automation Device (SGAD) is the interface between the electrical
power system and ICT-systems within a Large-Scale Virtual Power Plant.
LSVPP Control
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Laboratory activities and pre-standardisation
One of the key activities of the European laborato-
ries participating in FP5 projects has been to provide
common requirements and quality criteria, as well as
proposing test and certication procedures for DER-
components and systems.
However, this is just the beginning. New technological
approaches concerning the functions of distributed en-
ergy resources have to be tested, the quality of prod-
ucts must be guaranteed and operational requirements
should be harmonised.
Completion of DER laboratories
in FP5
Projects in FP5 have completed their laboratory infra-
structure in order to set up the DER laboratories that
are required to cover these tasks. Under the DISPOW-
ER project, two successful test facilities for LV grids
have been implemented in CESIs Milan site and at
ISET (Figure 4.1). They have been used to characterise,
test and evaluate the reliability of typical distributed
generators, the behaviour of the electrical grid, and
the feasibility of controlling DG by remote control in a
synergic way (Figure 4.2). Also, supervision and data-
acquisition systems have been set up to operate in
safety mode on grid and generation power units spread
across a relatively wide area. They have been designed
to use various communication media and technologies,
each of them useful in a different context.
Standardisation is a voluntary process based on
consensus amongst different economic actors (in-
dustry, SMEs, consumers, workers, environmental
NGOs, public authorities, etc). It is carried out by
independent standards bodies, acting at national,
European and international level.
The European Standards Organisations are CEN,
CENELEC and ETSI, of which CENELEC (European
Committee for Electrotechnical Standardisation)
deals with standards in the eletrotechnical eld.
The European Union has, since the mid-1980s,
made an increasing use of standards in support of
its policies and legislation in the areas of competi-
tiveness, ICT, public procurement, interoperability,
environment, transport, energy, consumer protec-
tion, etc.
The electricity market might use standards to make
sure that competition is fair. The public would ben-
et from a standard which improves the quality and
safety of the power supply or other services and
reduces the cost. European standards are also de-
veloped to help people comply with European leg-
islation on policies such as the single market.
The current change of the electricity supply struc-
ture towards more and more decentralised power
generation requires a change of current safety, con-
trol and communication technology. Todays main
challenges are:
the development of standards within acceptable
time frames according to the market needs.
the availability of expertise within the standardi-
sation process
the access to information on the results of stand-
ardisation for the standards users
the use of standards

Figure 4.1: ISETs DER Laboratory DeMoTec
in Kassel, Germany that was completed for
performing tests within the European Projects
Dispower, DG-Facts and Microgrids
Laboratory activities
and pre-standardisation
Coordinated pre-standardisation
activities in European DER
laboratories
It has become clear that European DER laboratories
play a key role in the integration of distributed genera-
tors, not only for testing concepts but also for the qual-
ity management of future DER system components.
Standardisation of DER technology should support
safe, reliable and efcient power supplies of sufcient
and dened power quality. It should also guarantee
the compatibility of applied components and control
techniques in order to transform efciently the conven-
tional electricity grids into future networks with high
penetration of DER and renewable energies.
Traditionally in Europe, standardisation activities
concerning DG were performed mainly according to
the energy source, e.g. for wind, photovoltaic, CHP.
However, new interdisciplinary committees are being
established to bundle general system aspects and
harmonise connection issues of DER:
IEC TC8: System aspects for electrical energy supply
IEC 61850: Communication networks and systems
in substations
IEEE1547TM: Standard for interconnecting distrib-
uted resources with electric power systems
The EUs FP5 IRED cluster encompasses standardisa-
tion activities that try to support the above-mentioned
committees. Initial activities in the IRED cluster were
intended to support harmonisation on the techni-
cal level in order to prevent the development of
unnecessary differences between Member States.

Figure 4.2: 100 kW Microturbine
One example for the huge test environment at
CESI in Milan that was completed by several
different distributed generators for testing
under steady state and transient conditions
Successful tests performed
within FP
5
projects
Within the FP5 projects, the laboratories
helped to verify new technological approaches
concerning the systems technology required
to handle the distribution grid under the new
conditions. The control technology of single
units, as well as the application of adapted
grid control and energy management algo-
rithms, were successfully tested. Further-
more, possibilities to improve power quality
by means of inverter-coupled DER units were
developed and tested extensively in partici-
pating FP5 laboratories (see Figure 4.3).
The applicability of the developed controls
for reactive power management and harmonic
suppression was demonstrated.
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Figure 4.3: Within the DG-FACTS project,
power quality measurements were performed
22
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Laboratory activities and pre-standardisation
International co-operation
The opportunity for close international co-operation
between European DER laboratories at an early stage
will help to achieve a common understanding of the
standardisation requirements for an efcient future
power supplys systems technology.
An international exchange with other laboratories
was initiated in FP5. As a rst step, an information
exchange has been started between US laboratories
(EPRI-PEAC, NREL, DUA) and Japanese laboratories
(METI, AIST, JET).
Establishment of a European DER
laboratory Network of Excellence
A network of high-quality European DER laboratories
has been set up within the FP5 IRED cluster.
In FP6, this network has been extended in the frame-
work of a durable European Network of Excellence
(NoE) entitled DER-Lab, which brings together a
group of 11 organisations for the development of grid
requirements and certication procedures for DER
components.
DER-Lab will act as a platform for the exchange of the
current state of knowledge between the different Eu-
ropean institutes and other groups. The scattered, but
high-quality research and test facilities from the differ-
ent institutions will be combined to produce signicant
benets for the European research infrastructure and
the industry. DER-Lab will contribute to the develop-
ment of new concepts for the control and supervision
of electricity supply and distribution and will bundle,
at European level, specic aspects concerning the in-
tegration of DG and RES technologies.
The results of the FP5 IRED cluster, followed by the
output of the DER-Lab network will make signicant
contributions to European standardisation activi-
ties and will contribute to the harmonisation of the
different national standards.

Figure 4.4 : Microgrids test facility at the
National Technical University of Athens
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Pilot installations and field tests
Pilot installations
and eld tests
The integration approach:
Intelligent Management of
Renewable Energies and
Distributed Generation in
Low Voltage Grids
Monitoring results of selected FP5 projects in grid seg-
ments showed that the main challenge for keeping
power quality stable in urban residential and commer-
cial grids lies in the adequate short circuit current and
by avoiding exceeding the voltage band. For example,
Photovoltaic (PV) systems connected to a residential
grid segment with evening peak loads may exceed the
allowed voltage band at a time with high-energy out-
put, e.g. on sunny days at noon, coinciding with low
load when nobody uses electrical devices. In such cas-
es, present systems are designed to disconnect auto-
matically, which leads to the non-optimal operation of
the Photovoltaic (PV) system. Without communication,
small distributed generators are unable to contribute to
improving power quality in the grid or to optimising en-
ergy ow, e.g. through peak shaving.
Most privately owned small generators in Germany are
monitored manually by the individual owner. Data trans-
fer to the distribution system operator occurs only once
a year for billing or in case of problems. As a result, the
distribution system operator is blind to the real-time
energy contribution from distributed generators.
A relevant Spanish case study in FP5 projects showed
that the main challenge lies in connecting distributed
generators in remote areas with weak grids. In these
grids, power quality and reliability can be improved by
an integrated approach, i.e. by intelligent management
of generators. Within DISPOWER, the experimental
Technology Demonstration Centre site at San Agustin
del Guadalix was set up to monitor and control impacts
of distributed generation for power quality improve-
ments. The site serves as a multiplier for Spanish energy
experts. Concrete results are currently being evaluated.
In Italy, to date there have been no real grid segments
with high penetration of renewable energies. However,
within FP5, the Italian research centre CESI has expand-
ed its experimental facility to monitor and control im-
pact of distributed generation on the Italian grid, where
about 30 million high-end electronic meters are cur-
rently being introduced over the next few years. This will
pave the way for close monitoring and control of a very
large number of distributed generators in Italy.
Pilot case study of DISPOWER:
the virtual power plant settlement
in Stutensee, Germany
In Stutensee (near Mannheim, Germany), around
400 people live in 100 apartments and row houses.
The electricity grids that serve European consumers
today have evolved over more than a hundred years.
They have been built up to perform efciently and
effectively but have now signicant new challenges
in parallel with major technical breakthroughs. This
calls for fresh thinking to take advantage of new tech-
nologies and the changing business frameworks.
The increasing penetration of RES and other dis-
tributed sources in the energy supply in low-volt-
age grids at national, regional and local level leads
to numerous technical challenges, that require a
European approach, which includes:
supplying European citizens with low-cost, sus-
tainable and reliable electric power; and
contributing to limiting carbon dioxide emissions
and fossil fuel dependency by accommodating re-
newable sources.
To cope with this, European pilot installations and
eld tests in FP
5
research projects have been carried
out to analyse real impacts of connected generators
towards monitoring power quality, safety and reli-
ability in integrated concepts under development:
virtual power plants, microgrids and active networks.
The former energy system for a residential settlement
has been converted to a small virtual power plant. The
generation units include: a co-generation plant (gas
driven Otto motor, 28 kW) with heat storage (Figure
5.1); several Photovoltaic (PV) systems amounting
around 30 kWp (Figure 5.2); and a battery system
(100 kW/h), acting both as supplier and load.
These components are successfully monitored re-
motely and controlled via the newly developed energy
management system. The results are as follows:
Power quality: The operation strategy successfully
avoids exceeding the voltage band by intelligent
load management. In case of high energy yield of the
Photovoltaic (PV) system, the battery acts as a load
and reduces the voltage level. Thus, the Photovoltaic
(PV) system can feed in despite a normally full grid,
i.e. a high voltage level.
Additional connection of distributed components.
In a second experiment, the battery acts as a second
and third Photovoltaic (PV) system. It feeds in with
the same power/double power as the Photovoltaic
(PV) system. The result is the validation of grid cal-
culations for the impact of two additional 30 kW
Photovoltaic (PV) systems.
Finally, the co-generation unit was complemented by
heat storage, which gives more exibility for the op-
eration time according to electricity needs. For this
experiment, the co-generation unit generates elec-
tricity at high tariff times. In addition, the battery
feeds in if there is still demand to be covered. The
Photovoltaic (PV) system always operates according
to the irradiation and is not actively controlled.

Figure 5.1: A view of the CHP System and heat
storage at Stutensee, Germany.

Figure 5.2: Partial view of the 30 kWp photovoltaic
System installed in Stutensee, Germany.
Within the pilot installations in FP5, the most
relevant results on the impact of distributed
generators on power quality and safety are the
follows:
The impact of distributed generators de-
pends on the grid structure as well as on the
load prole and generation prole over time.
For safety reasons, grid operators must
know the exact feed-in points of distributed
components during grid maintenance.
So far, ICTs are hardly ever applied to small
distributed generators. However, they are
very important for the efcient operation of
many distributed components in low-voltage
grids with real-time information on the grid
status.
The challenge of future projects will be to
reduce the cost of monitoring devices and
ICTs for an improved infrastructure.
During FP5, experimental installation and
monitoring with high-end electronic meters
has been in progress in a few pilot installa-
tions, aiming at the introduction of exible
tariffs and contract management. Citizens
satisfaction and behaviour will drive the
next steps in this eld.
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Pilot installations and field tests
Safety. Members of the grid operation staff are in-
formed about exact feed-in points and they can
monitor the real-time grid status and operate the
components via the internet at any time.
Information and Communication Technology. Be-
fore DISPOWER project, the DG components were
equipped with local analogue displays for monitor-
ing without remote access. In a rst step, the team
equipped the Photovoltaic (PV) system, the co-gen-
eration unit, the battery, distribution boxes and the
transformer with measuring devices for remote real-
time monitoring. The second step was to develop and
install interface boxes for each component. They en-
able individual standard DG and RES to communicate
with standard bus systems. The third step was the in-
terconnection of all elements by developing and im-
plementing the central control unit for the new power
quality and energy management system. The newly
established virtual power plant is accessed via the
internet on a protected website.
Loads in the apartments and rows of houses are ac-
cessible by an installation bus. The communication
for local load dispatching is currently being activated
in selected houses in a follow-up project.
Economic Aspects: The energy management fore-
casts the demand and expected generation and,
thus, optimises energy ow based on criteria such
as minimising the use of high-tariff electricity and
shaving peak loads.
In addition, remote monitoring of the current grid
status has already led to cost savings and optimised
operation and maintenance of distributed genera-
tors. Failures of the components are repaired more
efciently and faster than before, resulting in cost
savings and reduced down times compared to the
situation before DISPOWER. As for the co-genera-
tion unit, the newly introduced operation schedule
reduces maintenance cost due to fewer starts and
stops. Private owners of Photovoltaic (PV) systems
monitor their own systems and are in close contact
with the distribution system operator. Failures are
detected and repaired in adequate time.
Social acceptability aspects: Experiences with
customers in this settlement show that owners of
small distributed components are willing to co-op-
erate with the distribution system operator both in
electricity generation and in consumption, if they
see an economic benet even a small one for
themselves and understand that they can contribute
to improving the environment.

Figure 5.3: In this settlement, 22 families participated
in the experiment washing with the sun. They
received a message via mobile phone or e-mail that
they should use their washing machine within a
specied period of time when the team expected
high energy yield from the Photovoltaic (PV) systems.
As a result, the families reacted very well. In a next
step, this reaction will be supported by intelligent
control devices.
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DISPOWER results in this pilot installation
have shown that, with intelligent management,
distributed generation can be integrated into
the grid successfully and can improve power
quality as well as economic operation of the
settlements energy supply.
The settlement is well prepared for further ex-
periments for the high penetration of renewable
energies and distributed generation both from
the socio-economic and technical aspects.
The next challenge will be to reduce the cost
of the ICT and energy management system in
order to make it available for large-scale use.
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Socio-economic issues
28
29
Socio-economic research projects within FP5 were di-
rected at a further increase of the DER share in an eco-
nomic efcient manner in the medium and long term.
Thus, they address topics like optimising the role of
support schemes and improving network regulation
and the changing roles and business of relevant mar-
ket players, such as DER and network operators, in the
electricity market.
Socio-economic DER research
in FP5 projects
The main consideration of the SUSTELNET project was
that the economic values DER and RES generated for
the electricity system are insufciently recognised
and incorrectly valued and allocated towards differ-
ent market players. Although support schemes are
often applied in EU Member States to overcome this
barrier, in the long run this will result in economically
inefcient solutions and will keep DER and RES from
becoming mature power generation sources. This sit-
uation is illustrated in Figure 6.1. The production of
DER power has a certain cost price usually well above
the market price.
As DER brings a number of (energy and environmental)
benets to society, DER is supported through a (guar-
anteed) price that is above cost price level. The blue
bar shows the cost and the red bar a regulated feed-in
tariff. In an alternative (market-based) support system,
the support for DER is additional (green) to the com-
modity price (orange). This additional support should
only be given for: (i) compensation for external effects,
(ii) support for the introduction of new technologies,
and (iii) achieving specic policy objectives such as
sustainability goals. Electricity network regulation
should ensure that DER and RES are compensated for
electricity system benets (the yellow bar), lowering
the level of external support required. Such electricity
system benets consist of, for example, distribution ca-
pacity cost deferral, the provision of ancillary services
or reduction of line losses.
The effective integration of Distributed Energy Re-
sources (DER) into electricity supply is only secured
if an optimal combination of technical, legal and
economic requirements is fullled. The technical
prerequisites of the optimal integration of DER rely
on the availability of network capacity, load balanc-
ing conditions and the mix of the controllable and
uncontrollable DER share. Legal conditions are vital
as they include network regulation aimed at DER op-
erators and distribution system operators (DSO). This
includes the unbundling of distribution and trade of
electricity, the adoption of incentive mechanisms for
DSOs, and the regulation of third party access and
network connection charges. Last but not least, full-
ment of correct nancial, commercial and economic
requirements to DSOs and DER operators need to be
in place, including DER access to the power market,
the type & level of network connection charges, and
other anticipated costs & benets for the network and
DER operators.
Most of the barriers for further increase of the DER share
are caused by regulatory regimes that hardly recognise
the positive values of DER to power or grid services
and improvement of the security of supply. It is there-
fore essential that future energy policies acknowledge
and value the qualities of DER for the electricity system
and for society as a whole. Consequently important is
to reconcile two key policy objectives of the EU, namely
sustainability (by increasing shares of DER and RES)
and improving power market competitiveness (by using
market mechanisms as policy instruments). So increas-
ing the share of DER in the electricity supply should also
support the economic efciency of the system as much
as possible, including all environmental and network
related externalities. For that purpose it is necessary
that future power systems should be designed towards
a level playing eld for all market actors, meaning equal
opportunities for both centralised and distributed gen-
eration. Therefore, both the energy and environmental
values of DER should be better acknowledged and val-
ued in future power markets.
In the medium- to long-term future (2010-2020), the
costs for DER will decrease as the result of technical
developments. Support is only justied to compen-
sate for external effects. In the new regulatory frame-
work it will be possible to improve the mechanisms to
compensate for DER electricity system benets. The
compensations from the electricity system will, in rela-
tive and absolute terms, become more important for
the economics of DER.
The SUSTELNET project developed a regulatory road-
map that leads to the adoption of appropriate mecha-
nisms for increasing the integration of DER in Europe
in an economically optimal way. Therefore, criteria for
a regulatory framework for future electricity systems
were identied for individual Member States for the
medium to long term, including:
Guidelines for allocation of benets and costs of
DER
Connection charges and use-of-system charges for
DER operators
Incentivisation mechanisms for DSOs, motivating
them to connect DER to the grid and taking DER into
account in future network planning.
Based on these criteria, regulatory roadmaps for nine
countries
1
were developed. These included sets of
measures to be taken in different regulatory periods
up to the year 2020. The work on the national regula-
tory roadmaps eventually led to a set of recommen-
dations for a common European regulatory policy on
distributed generation. In addition, the SUSTELNET
project brought a large number of stakeholders to-
gether, such as electricity regulators, policy-makers,
DSOs and supply companies, as well as representa-
tives from other relevant institutions to debate the cri-
teria for an optimal regulatory framework.
Results of the DISPOWER project have contributed
to redening the role of the different energy system
stakeholders in a changed future electricity market en-
vironment with a growing share of DER. To cope with
these integration problems and, at the same time, use
the benets of DER to the maximum, several alterna-
tive network concepts, such as the Active Networks
and Micro-grids concept have been analysed. Such
concepts require special network technologies and,
within DISPOWER, the socio-economic impact of these
technical options in current liberalised electricity mar-
kets was studied. An inventory of technologies improv-
ing the access of DER was made with an assessment
tool (illustrated in Figure 6.2), showing the roles and
interactions between the stakeholders and energy
markets, in order to qualitatively answer the question:
which party will invest in such a technology, especially
Cost
Today Future (2010-2020)
Regulated
feed-in tariff
Marked based
pricing
Compensation
for electricity
system benefits
Support (e.g. green certificates)
environmental benefits
sustainability goals
technology support
Electricity
system benefits
increase due to
network innovates
Lower support
only for remaining
externalities
Higher commodity
price because of
internalisation
of CO2-emission
costs through
emission trading
system
Commodity
price
Cost Market based
pricing

Figure 6.1: DER integration economics
1
The nine countries involved in SUSTELNET are: Denmark, Germany, Italy, the Netherlands, United Kingdom, Czech Republic, Poland,
Hungary and Slovakia.
30
31
when part of the benets will accrue to a third party?
Investments in technologies such as power storage
(shown in Figure 6.2) have the potential to improve
the integration of DER into power networks and opti-
mise power output, producing only when the demand
is highest, and to decrease balancing costs as the
technology makes DER more controllable. Benets of
these technologies do not only accrue to the actors in-
vesting, so the mechanisms for the allocation of costs
and benets have to be identied. Follow-up research
projects within the FP6 will quantify these benets and
costs and identify the regulatory constraints that limit
a exible allocation of costs and benets between
network actors.
Today, the increasing share of distributed generation
may negatively affect the business of DSOs, because
DER units are generally located closer to demand than
centralised generation. Decreasing revenues for DSOs,
as less transport is needed, and other costs push DSOs
to change their business focus towards other revenue
sources. As the activities of the DSO have a monopoly
character, new regulation can affect the business of
the DSO and motivate it to facilitate DER in its network
system.
However, unlike DSOs, suppliers act in a market that is
exposed to competition and is not restricted by regula-
tion. A new business concept needs to be designed to
exploit opportunities for and promote the penetration
of DER, for example by operating a large number of
small electricity generators in the same way as a large
power plant, a concept often referred to as a large
scale virtual power plant, to be developed in the FP6
project FENIX.
Finally, the FP5 project ENIRDG-net completed the
assessment and overview of progress in EU Member
States as regards policy and regulation for DER in-
tegration. Through a benchmark study, a systematic
comparison has been made of different DER support
schemes and distribution network regulation in all EU
Member States. The benchmark study showed that in
many EU Member States the actual regulatory frame-
work and policy support systems did not match the
level of DER penetration needed to meet the long-
term targets. Policies towards DER are still mainly
aimed at removing short-term barriers, increasing the
production share of RES, thereby ignoring the long-
term economic benets and efciency goals for the
power system.
Commodity
Physical
Consumer
Balancing
Market
Energy
supplier
DER
operator
Storage
DSO
TSO
Ancillary
services
market
Large
power
producer

Figure 6.2: DISPOWER assessment tool
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FP5 projects have demonstrated that:
A growing share of DER in the electricity sup-
ply system will require the establishment of
a level playing eld, creating equal opportu-
nities for both centralised and decentralised
power generation. Reaching this level playing
eld requires the following steps:
Promote DER on market-based principles,
combining sustainability with economic
efciency. Examples are the use of price
premiums (on top of market prices) or green
certicates.
Ensure network and electricity market ac-
cess for all types of generation, including
the access of DER to ancillary services and
balancing markets, ensuring valuation of
DER costs and benets.
Include innovative approaches in network
management and regulation to motivate
DSOs to facilitate a larger share of DER into
electricity networks.
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Further RTD activities towards the Smart Power Networks
The detailed research topics for the EUs FP7 will be
presented in future work programmes, to be published
after the formal adoption by the Council and the Eu-
ropean Parliament of the Framework Programme and
correlated legislation.
These detailed research topics will be dened on the
basis of several inputs, including: a) political priorities
in the energy area, b) results and lessons learned by
previous and current EU projects, and c) other stake-
holders inputs, including the Strategic Research
Agenda produced by the recently launched Technol-
ogy Platform on Future Electricity Networks (see box).
Nevertheless, some preliminary indications have al-
ready emerged, and it can be expected that future re-
search topics will be based on the categories described
hereafter:
Intelligent electricity networks. RTD should cover
the development of new concepts, system archi-
tectures and a regulatory framework for control,
supervision and operation of electricity networks,
so as to transform the grid into an interactive (cus-
tomers/operators) service network, while max-
imising reliability, power quality, efciency and
security. These systems should be based on ap-
plications of distributed intelligent, plug and play,
e-trading, power-line communications, etc.
Efcient distributed energy generation technolo-
gies. RTD programmes should reinforce and balance
efforts made towards the development of Distrib-
uted Generation technologies, including fuel cells,
micro-turbines, photovoltaic systems, reciprocating
engines, hybrid power systems, thermally activated
technologies, etc.
Demand-side management and demand-response
resource techniques. These systems allow custom-
ers to shift their power consumption towards off-peak
periods and to reduce their total or peak demand.
RTD should cover the development of customer-side
energy management systems capable of managing
local power consumption and re-dispatching local
loads, so as to take full advantage of the real-time
energy price and network status information.
New energy services. RTD is needed for the devel-
opment of new energy services, such as remote me-
tering, remote control of appliances, the real-time
monitoring of homes to enable better care for the
elderly and other vulnerable groups, building stock
performance rating, and so on.
Improving the efciency of power transmission and
distribution. To minimise these losses (around 7% in
OECD countries), RTD is needed in areas like HVDC,
advanced high-temperature cables, high-efciency
transformers, etc.
Enabling technologies. To build the new type of
grid structure it is essential to bring to the market
low-cost technologies which can bridge between
local networks and create a modern pan-European
network with the capability of integrating signi-
cant DER. Key enabling technologies will facilitate
Further RTD activities towards
the Smart Power Networks
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Within the Energy Theme, the Commission
proposal for the Seventh Framework
Programme (COM(2005) 119 nal) conrms
power networks and distributed generation
as a priority for future research activities
requiring a European approach. The research
area, referred to as Smart Energy Networks
in the Commission proposal, is the natural
evolution of past activities on Integration.
The objective of the Smart Energy Networks
area is to increase the efciency, safety and
reliability of the European electricity and gas
system and networks, e.g. by transforming
the current electricity grids into an interactive
(customers/operators) service network, and to
remove the technical obstacles to the large-
scale deployment and effective integration of
distributed and renewable energy sources.
this development. RTD should focus on solutions/
applications of key enabling technologies, such as
High Temperature Superconducting Systems and
Devices, Power Electronics Converters, Power Line
Communication Technologies, etc.
Stationary energy storage. Energy storage has a
very important strategic value in future electric-
ity networks. It can allow the reduction of spinning
reserves to meet peak power demands, by storing
electricity, heat and cold, which is produced at times
of low demand and low generation, and releasing
it when energy is most needed and expensive. RTD
should focus on energy-storage technologies includ-
ing advance solutions on battery, ywheels, super-
conducting magnetic energy storage, compressed
air energy storage, and super capacitors.
Technology Platform SmartGrid: Electricity Networks of the Future
The potential for technology platforms to address major economic, technological or societal challenges
and to stimulate more effective and efcient RTD, especially in the private sector, is highlighted in the
Commission Communication Investing in Research: an Action Plan for Europe, set up in response to
the 2002 Barcelona Councils call to boost research and technological development in Europe.
In collaboration with industrial stakeholders and the research community, the Commission has
facilitated the setting up of a Technology Platform for the Electricity Networks of the Future. The rst
Advisory Council of the Platform was nominated in May 2005 and a Member States Mirror Group in
November 2005.
The rst deliverable from the Platform is the publication of a Vision Paper by December 2005 and of a
Strategic Research Agenda in spring 2006.
Further information on this Technology Platform can be found at:
http://europa.eu.int/comm/research/energy
34
35
Further RTD activities towards the Smart Power Networks
L
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37
List of FP5 Projects
Integration of Renewable Energy Sources and
Distributed Generation into the European electricity grid
FP
5
RTD projects
DISTRIBUTED GENERATION
ERK5-CT-1999-00019
MORE CARE More advanced control advice for secure operation of isolated power
systems with increased renewable energy penetration and storage
ENK5-CT-2000-80135
PreHyNet Preparation of a European Network for renewable energy hybrid power
systems
ENK5-CT-2001-00522
DISPOWER Distributed Generation with high penetration of renewable energy
sources
ENK5-CT-2001-00577
SUSTELNET Policy and Regulatory Roadmaps for the Integration of Distributed
Generation and the Development of Sustainable Electricity Networks
ENK5-CT-2001-20528
ENIRDG net European Network for Integration of Renewable Sources and
Distributed Generation
ENK5-CT-2002-00610 MICROGRIDS Large scale integration of micro-generation to low voltage grids
ENK5-CT-2002-00658
DGFACTS Improvement of the Quality of Supply in Distributed Generation Networks
through the Integrated Application of Power Electronic Techniques
ENK5-CT-2002-00673 CRISP Distributed intelligence in critical infrastructures for sustainable power
ELECTRICITY TRANSMISSION
ENK6-CT-2000-00064 OMASES Open Market Access and SEcurity assessment System
ENK6-CT-2000-00076
EuroMVCable Investigation of European Specication for Medium Voltage Power
Cable
ENK6-CT-2000-00087 ALTERNATIVE SF6 Development of a SF6 alternative for electrical equipment
ENK6-CT-2002-00670
HVDC Benets of Hvdc Links in the European Power Electrical System and Improved
Hvdc Technology
STORAGE
ENK6-CT-1999-00013 PAMLiB New Materials for Li-Ion Batteries with Reduced Cost and Improved Safety
ENK6-CT-2000-00069
ACTUS Specic Accelerated Test Procedure for Photovoltaic (PV) Batteries with Easy
Transfer to Various Kinds of Systems and for Quality Control
ENK6-CT-2000-00078
UHP VRLA BATTERY Ultra High Power Valve Regulated Lead Acid (vrla) Batteries for
Ups Applications
ENK6-CT-2000-00082 NEGELiA New Generation of Li-ion Accumulators
ENK6-CT-2000-00091 ABLE Advanced Battery for Low Cost Renewable Energy
ENK6-CT-2000-00102
PROBATT Advanced Processes and Technologies for Cost Effective Manufacturing of
Highly Efcient Batteries for Fuel Saving Cars
ENK6-CT-2000-00109
STAR-BMS Evaluation of Standard Test Procedures for Battery Management
Components
ENK6-CT-2000-00326
MULTIBAT Development of Multi-battery Management System for Renewable
Energies
ENK5-CT-2000-20336
INVESTIRE NETWORK Investigation on Storage Technologies for Intermittent
Renewable Energies: Evaluation and recommended R&D strategy
ENK6-CT-2001-80576
BENCHMARKING Development of Test Procedures for Benchmarking Components in
RES, in Particular Energy Storage Systems
ENK6-CT-2002-00601
LION HEART Lithium ION Battery Hybrid Electrical Application Research and
Technology
ENK6-CT-2002-00626 LIBERAL Lithium Battery Evaluation and Research - Accelerated Life test direction
ENK6-CT-2002-00611 AA-CAES Advanced adiabatic compressed air energy storage
ENK6-CT-2002-00636 CAMELiA CAlendar life MastEring of Li-ION Accumulator
ENK6-CT-2002-00661
REVCELL Autonomous Energy Supply System with Reversible Fuel Cell as Long-term
Storage for Photovoltaic (PV) Stand-alone Systems and Uninterruptible Power Supplies
HIGH TEMPERATURE SUPERCONDUCTORS
ENK6-CT-2000-00077
ACROPOLIS Low AC loss elementary and assembled BSCCO superconductors for
application in devices of energy technique
ENK6-CT-2002-00624
HOTSMES Superconducting Magnetic Energy Storage based on High Transition
Temperature Superconducting Materials for high quality power
ENK6-CT-2002-30025
HIPOLITY Innovative new high temperature superconducting magnetic energy
storage system (SMES) for high efcient power quality
ENK6-CT-2002-80658 ASTRA Applied Superconductivity Training and Research Advanced Centre
ENK6-CT-2002-80668
ASSPECT Centre of Excellence for the Application of Superconducting and Plasma
Technologies in Power Engineering
ENK6-CT-2002-80669
PELINCEC Centre of Excellence in Power Electronics and Intelligent Control for
Energy Conservation
Other INTEGRATION PROJECTS
ERK5-CT-1999-00001
BIODISH Development of a ceramic hybrid receiver for biogas-red Dish-Stirling-
Systems for electric power supply
ERK5-CT-1999-00008
EXPERT SYSTEM LSSH Development of an expert system to analyse and optimise
the technical and economic feasibility and performance of hybrid large-scale solar
heating (LSSH) systems
ERK5-CT-1999-00013 HYBRIX Plug and Play technology for hybrid power supplies
ERK5-CT-1999-00016 FIRMWIND Towards high penetration and rm power from wind energy
ERK5-CT-1999-00017
Photovoltaic (PV)FC-SYS Photovoltaic fuel-cell hybrid system for electricity and heat
production for remote sites
ERK5-CT-1999-00018 FIRST Fuel cell innovative remote energy system for Telecom
38
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ERK5-CT-1999-00022
MINI-GRID-KIT Mini-grid construction kit for rural electrication with renewable
energies
ERK5-CT-1999-80002
AMIREES Accompanying Measure for the Integration of Renewable Energies into the
Energy Systems
ERK6-CT-2000-00092 DH DSM Demand-side management of the district heating systems
ENK5-CT-2000-00307
MED2010 Large-scale integration of Photovoltaic (PV) and wind power in
Mediterranean countries
ENK5-CT-2000-00332
HELIOSAT-3 Energy-Specic Solar Radiation Data from Meteosat Second Generation
(MSG)
ENK5-CT-2000-00345
AFRODITE Advanced Faade and Roof Elements Key to Large-Scale Building
Integration of Photovoltaic Energy
ERK5-CT-2000-80124 REMAC 2000 Renewable Energy Market Accelerator 2000
ENK6-CT-2001-00507 PAMELA Phase Change Material Slurries and their Commercial Applications
ENK5-CT-2001-00527
REGENERATE Theoretical and Experimental study for the development of efcient
and economic Stirling regenerators
ENK5-CT-2001-00536
RES2H2 Cluster Pilot Project for the Integration of RES into European Energy sectors
using H
2
.
ENK5-CT-2002-00658
DGFACTS Improvement of the Quality of Supply in Distributed Generation Networks
through the Integrated Application of Power Electronic Techniques
ENK5-CT-2002-80651 ERA_ISLA New and renewable energies, electricity and water in outermost regions
European Commission
EUR 21970 Towards Smart Power Networks Lessons learned from European research FP5 projects
Luxembourg: Ofce for Ofcial Publications of the European Communities
2005 39 pp. 21.0 x 29.7 cm
ISBN 92-79-00554-5
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The electricity grids that serve European consumers today have evolved over more than a hundred years. They
have been built up to perform efciently and effectively. But now they face new challenges in parallel with major
technological breakthroughs. This calls for fresh thinking to take advantage of new technologies and changing
business frameworks.
The increasing penetration of renewable energy and other distributed sources in the energy supply plays a key
role in addressing important needs, such as: supplying the citizens with low-cost, sustainable and reliable electric
power; and contributing to limiting carbon dioxide emissions and fossil fuel dependency by accommodating
renewable distributed sources.
This brochure describes the lessons learned in around 50 research projects under the Target Action Integration
of renewable energies and distributed generation into European electricity networks, in the EUs Fifth Framework
Programme. These projects are considered as the starting point for the development of the rst generation of
components and new architectures for interactive electricity grids: the smart power grids. This intelligent grid
system will contribute to the deployment of new and cleaner technologies. It would also allow the electricity
consumers to choose their electricity supply according to their needs and preferences.
Activities in this area are continuing under FP6 with very promising large Integrated Projects and Networks of
Excellence in which more and more utilities and other stakeholders in the electricity sector, usually competitors
in the international market, are showing their readiness to share know-how and efforts. In the coming years,
research efforts should be intensied and coordinated in the EU to achieve validated technologies which hopefully
will provide innovative win-win solutions that were unimaginable just a few years ago.

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