smart grid implementation : challenges & … · dms,/oms/mobile workforce management, micro...
TRANSCRIPT
L/O/G/O
By: Ir. Halim OsmanCIRED Malaysia
SMART GRID IMPLEMENTATION : CHALLENGES & OPPORTUNITIES
FOR MALAYSIA
ISGT ASIA 201420-23 May 2014
Berjaya Times Square Hotel, Kuala Lumpur
KEY QUESTIONS KEY QUESTIONS
IS SMART GRID RELEVANT FOR MALAYSIA?
IF RELEVANT , WHAT DO WE NEED TO DO?
WHAT ARE THE CHALLENGES?
WHAT IS THE WAY FORWARD FOR MALAYSIA?
Industry Concerns & Imperatives
Title in here
Renewable Energy
Integration
EnergyEfficiency
Electricity tariff
& affordability
INDUSTRY CONCERNS & IMPERATIVES INDUSTRY CONCERNS & IMPERATIVES
Sustainable investment &development
Lower Carbon
Emissions
Market & operational efficiency Security
of Supply &
Quality of Supply
Energy Security
• Issues and concerns are similar to many economies
National Smart Grid
Vision & Plan ????
National RE Policy &
Action Plan
NATIONAL LEVEL POLICIES AND PLANNATIONAL LEVEL POLICIES AND PLAN
National EE Action
Plan
Green Technology Foresight
2030
National Automotive
Policy
Doing enough to suggest possible relevance of Smart Grid to Malaysia but missing link prevails
New targets, with main focus on:-• Reduction of CO2 emission• Energy Efficiency• Renewable energy generation
• Quality of supply (reliability, security, & power quality)• Operational efficiencySmarten T & D grid (smart customer services & smart asset management –enabled by ACTIVE NETWORK MANAGEMENT)
Producers Smart Grid Enables Consumers
Both “Sustainable & Flexible Energy System” – active customers supported by a Smart Grid & developed energy market
Centralized Power Plant
Large Scale DG
Small Scale DG
Energy Storage
Smart Homes/Buildings
E-mobility
Industries
WHAT IS SMART GRID? (1) WHAT IS SMART GRID? (1)
A Smart Grid is an electricity network that can intelligently integrate the actions of all users connected to it - generators, consumers and those that do both – in order to efficiently deliver sustainable, economic and secure electricity supplies.
A Smart Grid employs innovative products and services together with intelligent monitoring, control, communication, and self-healing technologies to:
• better facilitate the connection and operation of generators of all sizes and technologies;
• allow consumers to play a part in optimizing the operation of the system;
• provide consumers with greater information and choice of supply;
• significantly reduce the environmental impact of the whole electricity supply system;
• deliver enhanced levels of reliability and security of supply.
WHAT IS SMART GRID? (2) WHAT IS SMART GRID? (2)
.
Smart Grids deployment must include not only technology, market and commercial considerations, environmental impact, regulatory framework, standardization usage, ICT (Information & Communication Technology) and migration strategy but also societal
SMART GRID CAPABILITIES – VALUES & RELEVANCE (1)SMART GRID CAPABILITIES – VALUES & RELEVANCE (1)High Level Capabilities & Functionalities
Values & Benefits Possible Impact & Relevance to Industry’s Goals
Customer presentment, Meter data management & analytics
Active Network Management or Operations, Advanced DMS,/OMS/Mobile Workforce Management, Micro grid, Advanced Automation, Demand Response, DER management, Volt-Var optimization,
Customer participationPeak Shaving/Demand reduction/Energy Savings
Enhanced reliability & Power QualityOptimized efficiency/technical lossesOperational efficiencyQuality customer services- outage managementOptimizing DER capacity
• Customer services• Energy Efficiency• DER integration &
optimization • sustainable dev
and lower carbon emission
• Enhanced reliability & power quality
• Enhanced operational efficiency – lower cost of operations
SMART GRID CAPABILITIES - VALUES & RELEVANCE(2)SMART GRID CAPABILITIES - VALUES & RELEVANCE(2)High LevelCapabilities & Functionalities
Values & BenefitsPossible Impact & Relevance to Industry ‘s Goals
• Smart Grid Enabled Asset Management -- Advanced diagnostic and on-line monitoring, asset analytics, risk assessment, asset health indexing, dynamic rating
• Advanced EAM capabilities
• Fully matured Strategic Asset Management
• Asset optimization• Optimized
investment and spending
• Improved reliability and failure risk reduction
• Customer services• Enhanced reliability
& power quality• Enhanced
operational efficiency – lower cost of operations
• Sustainable development
IS SMART GRID RELEVANT ? (1)IS SMART GRID RELEVANT ? (1)
Values of Smart Grid Relevance & Contribution
Safer and higher integration of DER through active network management, DER management, advanced protection and controls, mirco grid
Yes, high relevance to effectively integrate higher RE as per targeted
Higher reliability and power quality through advanced automation, advanced diagnostics/monitoring & self-diagnosis and healing etc.
Yes, high relevance to support competitiveness of services oriented and high value manufacturing
Enhancing grid optimization,balancing demand and capacity, optimizing efficiency of network in real time through SG technologies . Efficient utilization & load management through AMI, demand response
YES, HIGH for efficiency in both delivery and utilization is to be effectively managed in almost real time.
IS SMART GRID RELEVANT? (2)IS SMART GRID RELEVANT? (2)
Values of Smart Grid Relevance & Contribution
Better optimization of asset (higher value creation from asset) achieved through SMART GRID enabled STRATEGIC ASSET MANAGEMENT – built upon fully developed EAM, risk-based strategies, integrated IT applications, effective deployment of SG technologies to better assess asset health and risk etc .
Yes, high relevance since OPERATIONAL EFFICIENCY or “cost of delivery” is key next to QUALITY OF SUPPLY
Loadforecasting
Network Operations
Network planning
Network Functions/Process
Smart-Grid Enabled
Integrated Resource Planning with DR, customer analytics.. short-term planning
Network planning based on better sets of information- load forecast, performance, conditions & risks
Active or real time network management – situational awareness & control of constraints & PQ, optimization
Network asset maintenance, diagnostics, analytics
Renewal integration
Network Functions/Process
Smart-Grid Enabled
Asset analytics – real time condition assessment, prognostics etc
Greater integration level but minimizing impact of distribution network –stability, PQ, secutity
Smart grid brings reliability, PQ , service level, operational efficiency, investment efficiency to next level
SMART GRID VALUES & BENEFITS
Title in here
Renewable Energy
Integration
EnergyEfficiency
Electricity tariff
& affordability
SMART GRID & INDUSTRY GOALS-RECAPSMART GRID & INDUSTRY GOALS-RECAP
Sustainable investment &development
Lower Carbon
Emissions
Market & operational efficiency
Security of Supply &Quality of
Supply
Energy Security
WHAT WE NEED TO DO IF SMART GRID IS CONSIDERED RELEVANT BY ALL INDUSTRY
STAKEHOLDERS?
SMART GRID CHALLENGES & OPPORTUNITIES
Title in here
FUNDING & INCENTIVES
CAPACITY DEVELOPMENT, R &D , PILOTS
STAKEHOLDERENGAGEMENT
SMART GRID- WHAT TO DO?SMART GRID- WHAT TO DO?
STRATEGYDEPLOYMENT
NATIONAL SG VISION
GAP ANALYSIS &
BUILDINGFOUNDATIONS
MARKET & REGULATIONS
INSTITUTIONAL SUPPORT
1
2
3
5
48
67
KEY CHALLENGES & OPPORTUNITIES FOR MALAYSIA
KEY CHALLENGE #1- SMART GRID ENVISIONING & PLANNING KEY CHALLENGE #1- SMART GRID ENVISIONING & PLANNING
Developing SG Vision – SG big picture or “jigsaw puzzle” for Malaysia; linking all pieces of jigsaw (EE, RE, GT) into SG big picture.
Defining a common view of SG Capabilities & all enabling elements – “all that have to come together”.
Defining value propositions to all stakeholders –nation, industry, society, customers, utility , cost/savings & high level business case for policy decisions & strategy deployment.
Need to quantify investment & savings for Malaysia
KEY CHALLENGE # 2- INSTITUTIONAL SUPPORT KEY CHALLENGE # 2- INSTITUTIONAL SUPPORT
Ownership, driver of SG vision, integrating role -institutional support
Bits & pieces of SG elements being implemented by multiple parties – institutional support to ensure realignment and integration
SG is when everything comes together & provides the desired level of capabilities– hence an integrated plan to see how EE, RE , Green Initiatives, EV fit into SG vision/strategy/plan
KEY CHALLENGE # 3- STAKEHOLDER ENGAGEMENTSKEY CHALLENGE # 3- STAKEHOLDER ENGAGEMENTS
SG envisioning, strategizing and successful implementation requires clear identification and involvement of key stakeholders
Key stakeholders - ministries, regulators, related agencies, NGOs, professional bodies, customers, customer associations, utilities, technology providers, academicians, research and standard making bodies, manufacturers
KEY CHALLENGE # 4- DIAGNOSIS & TECHNOLOGY MANAGEMENT(1)KEY CHALLENGE # 4- DIAGNOSIS & TECHNOLOGY MANAGEMENT(1)
SG capabilities , supportive processes & technologies to be fully understood in terms of maturity and gaps including fundamental weaknesses – Effective diagnosis is all important
Technology management issues –building/integrating advanced infrastructure into legacy system & REBUILDING FOUNDATIONS
DEFINING GAPS – REBUILDING FOUNDATIONSDEFINING GAPS – REBUILDING FOUNDATIONS
Basic network data /model & system topology & customer connectivity
Data sensor & on-line monitoring
GIS enable EAM
Communications
Intelligent Applications – SCADA/DMS, smart metering & asset analytics/prognostics to support advanced business processes
Distribution Automation/DMS, OMS, maintenance and diagnostics, operational and condition data
Building a SG is like adding on extra floors to existing building – need for strong foundations
Doing right things now & it is costly to fix later
KEY CHALLENGE # 4- DIAGNOSIS & TECHNOLOGY MANAGEMENT (2)KEY CHALLENGE # 4- DIAGNOSIS & TECHNOLOGY MANAGEMENT (2)
On-going selection and adoption of technologies in advancing network management/performance to be consistent with SG capabilities
Technology management for SG pilot projects –clearly defined capability statements / technology/assessment criteria, scalability & managing risk of technological obsolesces
KEY CHALLENGE # 5- STRATEGIES & DEPLOYMENTKEY CHALLENGE # 5- STRATEGIES & DEPLOYMENT
Based on defined SG vision as driven by industry goals /imperatives - there is a need to define strategy deployment of SG capabilities/technology
Possible prioritized SG strategy based on business case- Enhancing grid security, reliability and power
quality Enhancing energy efficiency Grid optimization
KEY CHALLENGE #6- MARKET & REGULATIONSKEY CHALLENGE #6- MARKET & REGULATIONSMarket & Regulations Development of efficient market, Investment
recovery by utilities & supportive regulatory mechanism/incentives
Electricity pricing mechanism – dynamic rates to incentivize customer participation
Societal & customer engagement Customer ‘s education - to be significantly aware
of smart grid, value propositions and active roles & contributions
Study of customer behavior and pricing signals/sensitivities, demand responses, smart homes
KEY CHALLENGE # 7- CAPACITY DEVELOPMENT, PILOTS , R & DKEY CHALLENGE # 7- CAPACITY DEVELOPMENT, PILOTS , R & D
Lack of coherent capacity development for many reasons.
Pilot implemented to be better conceptualized and planned with objectives to test and validate “ greater scope of SG capabilities”.
R & D by utilities, universities has to be designed, managed and implemented with clear linked to “field SG capabilities/application” in the local scene.
KEY CHALLENGE # 8- FUNDING & INCENTIVESKEY CHALLENGE # 8- FUNDING & INCENTIVES
Special funding from government grants is essential for pilot projects to be implemented on a scale to test & learn from fuller SG capabilities.
SG implementations benefits many stakeholders –cost & benefits to be shared by all.
WAY FORWARD –
POSSIBLE NEXT STEPS
#1 - SG VISION#1 - SG VISION
NATIONAL SMART GRID
VISION
• Unifying & integrated National SG Vision
• SG Vision to define capabilities, benefits & values to all stakeholders
• Presenting holistic view what has to be put into place
#2 – INSTITUTIONAL SUPPORT & ROLES#2 – INSTITUTIONAL SUPPORT & ROLES
INSTITUTIONAL SUPPORT
• Championing of SG Agenda/Vision
• Engagement of stakeholders in developing SG strategy deployment
• High level studies – cost benefits, funding options
• Seeking of funding/grants for pilot projects
#2-1: ENERGY RELATED POLICIES, PLANS & LEGISLATIONS 2000-2013 #2-1: ENERGY RELATED POLICIES, PLANS & LEGISLATIONS 2000-2013
2000 -2005
MIEEEIP5th FUEL POLICY, SREP, EE ROGRAMS
-EFFICIENT MGT OF ELECTRICAL ENERGY REGULATIONSGREEN TECHNOLOGY POLICY & FINANCINGGBI -DECLARATION ON 40% REDUCTION IN CARBON EMISSIONS
RE ACT, FEED-IN TARIFF,RE OF 2000MW BY 20202008-2010
2011
2013NEEMPEE ACTGREEN TECH FORESIGHT, NEEAP
SMART GRID IS THE ULTIMATE “ELECTRICITY SYSTEM” TO ACHIEVE INDUSTRY GOALS FOR MALAYSIA
#3- STRATEGIZING & PLANNING #3- STRATEGIZING & PLANNING
SMART GRID PLANNING &
ROAD-MAPPING,
• Structured approaches in understanding capability gaps, maturity of solutions
• Focused on “addressing fundamentals” and “ building foundational capabilities consistent with SG roadmap
#4- PILOT IMPLEMENTATION #4- PILOT IMPLEMENTATION
PILOT IMPLEMENTATION
Specially funded SG pilot on a scale to test fuller SG capabilities /enabling technologies ( funding may be a limiting factor)
#5- CAPACITY DEVELOPMENT, R & D#5- CAPACITY DEVELOPMENT, R & D
CAPACITY DEVELOPMENT
, R & D
• Capacity Development Program through collaborative efforts of key industry stakeholders.
• More R & D projects to be aligned/funded to SG strategies
#6- MARKET & REGULATIONS#6- MARKET & REGULATIONS
MARKET & REGULATIONS
Dynamic pricing to incentivize customers to participate in changing consumption
Market to be efficient, cost recovery for traditional asset and related to SG technologies
CONCLUSIONS #1CONCLUSIONS #1
Still diverse view on values and relevance of smart grid for Malaysia
Opportunities & values need to be objectively clarified and ascertained for Malaysia
Policy and action plans related to sustainability goals- EE, RE and has no links with NATIONAL SMART GRID VISION
CONCLUSIONS #2CONCLUSIONS #2
“National Smart Grid Vision” & “ Institutional Support” are few critical steps in moving forward with Smart Grid Agenda
Adequately funded, well conceptualized SG pilots of sizeable scale driven by wider SG objectives and capabilities would provide more added values in testing out technologies under local environment
Financial support/grants for pilot projects and long-term regulatory incentives for utilities to embark on SG projects are essential
CONCLUSIONS #3CONCLUSIONS #3
Utilities need to develop SG roadmap focused on rebuilding or strengthening fundamentals and foundational elements for SG
Acceptance of inevitability or relevance of SG to national/industry agenda, adoption of common view of SG capabilities in SG Vision, integrated approaches to SG planning & strategy deployment, financial support/incentives are key considerations in moving forward with SG agenda.
