RWE’s view of the Evolution of theSmart InfrastructureWhat are the specific challenges and howis RWE tackling this issues in the future ?Dr. Andreas Breuer, Vice PresidentNew Technologies/Projects, RWE Deutschland AG27/05/2011 EC-Telecom-Utilities WorkshopRWE Deutschland AG 19.07.2011SEITE 1

Content Slide Smart Grids – Definition and distinction Future challenges for distribution grids Aligning distribution grids to growing demand ConclusionRWE Deutschland AG 19.07.2011SEITE 2

Smart Grids – Definition and distinctionRWE Deutschland AG 19.07.2011SEITE 3

Smart grids form the platform for innovativeenergy services for smart energyGenMarketplaceof the futureSmart TradingTransmission gridsDistribution gridsHeat gridsTransitICTStorageSmart homeE-mobilityMUC Multi Utility CommunicationIKT Information and communication technologyConsumptionRWE Deutschland AG 19.07.2011SEITE 5

Future challenges for distribution gridsRWE Deutschland AG 19.07.2011SEITE 6

Specific measures and clear objectives helpto meet current and future challengesChallengesDemographicsMeasuresInnovative intelligentenergy gridsStructural changeGrid developmentConsumptionGrid ementAge structureEnergymanagement Secure return oncapital employed Market-driven highsupply quality Energy-efficientand cost-efficientgridsRegulationRWE Deutschland AG 19.07.2011SEITE 7

The challenge of “Demographics”REG NordREG MitteREG OstREG SüdwestREG WestREG Süd4,0%DeutschlandDecline in population by 2020 combined with an East-West shiftprovides only little potential for rationalisation0,0%-4,0%-8,0%-12,0%Prognosis: Inhibitants 2020 zu 2004RWE Deutschland AG 19.07.2011SEITE 8

The challenge of “Distributed generation”140%120% 160 % in 2020 70 % in 2007100%80%60%40%20%0%WWEVSESüwag2007 - Windkraft [%]RRLEWKEVAG enviaM2020 - Windkraft [%]70%60%50%40% 60 % in 2020 10 % in 200730%20%10%0%WWEVSESüwag2007 - Photovoltaik [%]RRLEWKEVAGenviaM2020 - Photovoltaik [%]RWE Deutschland AG 19.07.2011Source: Grid strategy process 2008160%Source: Grid strategy process 2008inst. capacity / annual peak load180%inst. capacity / annual peak loadThe development of new wind energy and photovoltaic plants “fillsup“ the low-, medium- and high-voltage grids to the point of powerflow reversalSEITE 11

The challenge of “Age structure”The assets installed in the 60s and 70s must be replacedin the short- to medium term – new technologies are availableNew technology1995199019851980197519701965PILC – Paper InsulatedLayered CableXLPE – Cross Linked PE1960* qualitative presentationOld technologyYear of constructionRWE Deutschland AG 19.07.2011SEITE 12

Aligning distribution grids to growing demandRWE Deutschland AG 19.07.2011SEITE 14

RWE pools the activities aimed at aligningthe distribution grids to growing demandsInnovative intelligent energy gridsGrid developmentGridmanagement Forecasting of supply Strategy for incentivetaskregulation Analysis of grid situation Installation of smartgrids using intelligentmeasures Fee-based / tariffbased modelDatamanagementEnergymanagement eHZ / tLZ meters Virtual power plant Data concentrator Distributed storage Data warehousesystems E-energy G4VExample: “Electricity grids of the future” – project of theFederal Ministry of Economics (BMWi) (sum 80 Mio. )RWE Deutschland AG 19.07.2011SEITE 15

Grid planning responds to the challengesof tomorrow’s grids (I)TodayGrid developmentTomorrowWEA Forecasting ofsupply task10 kV Electricity Heating/cooling GasCHP 0.4 kV PVA PVA0.4 kVPVA FCBZ – Fuel cellPVA – Photovoltaic plantWEA – Wind power plantμKWK – Micro combinedheat-and-powerG4V – Grid for vehicle10 kV10 kV Analysis ofgrid situation Installation of smartgrids usingintelligentmeasuresWEA 10 kV µCHPFCµCHP G4VPVARWE Deutschland AG 19.07.2011SEITE 16

Grid planning responds to the challengesof tomorrow’s grids (II)Grid development Forecasting ofsupply task Analysis ofgrid situation Installation of smartgrids usingintelligentmeasures Identification of regional supply tasks Inventory of the current grid situation andextrapolation to the supply task to be expected Identification of innovative tools for gridplanning, especially new processes andoperating equipment as well as monetaryassessment of possible useRWE Deutschland AG 19.07.2011SEITE 17

Grid planning responds to the challengesof tomorrow’s gridsGrid development Forecasting ofsupply task Analysis ofgrid situation Installation of smartgrids usingintelligentmeasures Development of individual supply schemes,taking account of the interaction betweenelectricity and gas Revision of existing planning and operatingprinciples Currently in progress: BMWi project“Netze der Stromversorgung der Zukunft”RWE Deutschland AG 19.07.2011SEITE 18

Distributed generation is efficiently integratedinto the grid through “virtual power plants” (I)EnergymanagementGrid control system Virtual powerplant E-energy G4VEnergymanagmentsystemEnergy exchangeBillingGBiomass-firedpower plantGSmall-scalecogenerationplantWeather serviceCommunicationnetworkControllable loadsRemote meter readingPhotovoltaic plantMod.ConcentratorMod.ZFuel cellDistributedsmall fuel cellsWindpowerZMod.Mod. Mod.ZZMod.ZZDistributed loadsRWE Deutschland AG 19.07.2011SEITE 19

Distributed generation is efficiently integratedinto the grid through “virtual power plants”Energymanagement Virtual powerplant E-energy G4V Virtual power plants enable operators to usemarketing channels otherwise closed to smallscale plants for cost reasons RWE is positioning itself to meet the politicalrequirements for the promotion of distributedsupply Potential results were investigated using twopools of plants as examples:– A: 36 plants, 23 MW – revenue565 k /a– B: 36 plants, 99 MW – revenue 1,280 k /a Marketing in a pool would have resulted inhigher revenues of 13 – 15 % compared toindividual plant operationRWE Deutschland AG 19.07.2011SEITE 20

The fusion of information and energy technologyprovides new leeway for efficiency and quality (I)Energymanagement Virtual powerplant E-energy G4V In 6 pilot regions throughout Germany have thefollowing aims in particular:– Technical feasibility– Increase in economic efficiency– Improvement of supply reliability and climatecompatibility– Increase in energy efficiency, transparency– Higher profitability of distributed supply unitsRWE Deutschland AG 19.07.2011SEITE 21

The fusion of information and energy technologyprovides new leeway for efficiency and qualityEnergymanagementCurrently in progress: E-DeMa BMWi projectMarketplaceCustomer applications Virtual powerplantLastmanagementLoad managementundandSteuerungcontrol ofvonhouseholdappliancesHaushaltsgeräten E-energyvia DSL, GPRS, PLC, G4VIKT-GatewayICTGatewayE-DeMa – Development anddemonstration of decentralisedintegrated energy systems onthe way towards the e-energymarketplace of the futureSteuerungControl of dezentralerdistributedEinspeisersupply units(µKWK)(micro CHP)(virtuelles(virtual powerKraftwerk)plant)ErfassungRecordingvon ofspartencross-sectorü bergreifendenmeter dataZ ä hlwerten(Smart(smart metering)Metering) Creation ofincentives fromEEX, suppliersand gridoperators Market forenergyservices Grid management withonline information formedium- andlow-voltageRWE Deutschland AG 19.07.2011SEITE 22

G4V Project – Analyses the impact and possibilitiesof a mass introduction of EV/PHEV on electricitygrids in EuropeEnergymanagement Virtual powerplant E-energy G4V Consortium:RWE, EDF, EDP, Endesa, Enel, Vattenfall,Chalmers, ECN, Imperial, RWTH Aachen,TU Dortmund, UPVLC Starting date: 1st January 2010;Duration: 18 monthsRWE Deutschland AG 19.07.2011SEITE 23

G4V Project – Analyses the impact and possibilitiesof a mass introduction of EV/PHEV on electricitygrids in EuropeEnergymanagement Virtual powerplant E-energy G4V Objectives:– Developing an analytical method to evaluatethe impact of a large scale introduction ofEV and PHEV on the electricity gridinfrastructure in Europe– Elaborating a visionary “road map” for theyear 2020 and beyond taking into accountall stakeholders and generating fast andopenly available result spectsRWE Deutschland AG 19.07.2011EconomicalaspectsSEITE 24

Conclusion The future energy supply scheme will change dramatically–Generation pattern change into an environmental friendly and moredecentralized mix–Customer become an active partner in energy markets, due tointelligent connection and appliances (Smart meter, EV and DG) The complexity of middle and low voltage grids will increase andchanging the way how to operate a DSO grid effectively Smart Grid structures will fulfil future customer needs, but has torespect following expectations:–Quality of supply (availability)–Economical structure whichfulfil the regulated conditions–Smart functionalities of assetshas to support the abovementioned task of supplyRWE Deutschland AG 19.07.2011SEITE 25

RWE. Deutschland AG 19.07.2011 SEITE 18. Grid planning responds to the challenges of tomorrow's grids Forecasting of supply task Analysis of grid situation