Smart Grid and Storage Intro Kenneth Johansson CEO KIC InnoEnergy Sweden +46 70 6290556 kenneth.johansson@kic-innoenergy.com
Why Smart Grid ? Why Store Energy ?
They are unpredictable and not always around.
•
What is Smart Grid ?
No common view. No one really knows.
•
Will it come ?
Yes !
Estimated Market Growth Energy Production:
Energy Distribution:
Clean Energy Investment Outlook to 2030
Smart Grid Market Outlook to 2020
2020: • Investment 590b€, +40% • •
Accumulated €4.0 Trillion ICT/Telecom growing segment
2030: • 70% of all generation from renewable • Investment $630bn, +230% •
Accumulated $7.6
Trillion
Source: Bloomberg New Energy Finance, Global Renewable Energy Market Outlook 2013
Source: IEA, EU, Peak Research, Blue Institute
Traditional Grid evolution to Smart Grid
A new value chain is emerging – opening for new opportunities Natural resources
“Production”
Optimization
Distribution
Sales
Wind resources Hydro resources
Decentralized
Demand side management Storage PV
Prosumer
Heat pumps Micro/small-scale CHPs Small-scale Onshore wind
Coal mining Rights
Biomass feedstock
Centralized
Gas fields
Large-scale Heat
AO(T) “large-scale asset optimization”
Centralized renewables (e.g. Wind power) Large-scale lowemitting (Hydro & Nuclear)
1dOptimization services
Large-scale fossil
Aggregation services
• Technology • Business models • Regulation
?
Commodity sales
Smart, two-way delivery
Solutions of products & services
How to do innovation ?
Consumer Demand side management
Some personal comments (Lennart Söder, Professor electric System, KTH, Sweden):
”Smartgrids are needed for ….” • LS: One can, e.g., integrate large amounts of wind power and/or electric vehicles without new Smartgrids technology, but it may be less efficient ”With Smartgrids the losses are reduced” • LS: Often this is not the case since Smartgrids means a higher use of existing equipment instead of investment in more copper! ”How much will Smartgrids cost?” • LS: One should only invest in Smartgrids if it creates a net benefit, otherwise not.
Solutions and competition Assume a system with large price variation:
100
Three types of ”business opportunities”
Eu ro / MWh
80 60 40 20 0 1
13 25 37 49 61 73 85 97 109 121 133 145 157 169 Time
More trading
Demand side management
Flexible plants
• There is a competition between these methods. • Much transmission reduces price changes less interest in DSM
How to do Innovation in this environment ?
Challenge for Industry Identify / Verify: • Market to enter ? • Customer to approach ? • Competition ? • • • •
Product to realize ? Technology to choose ? Business Case ? Competiveness of Solution (USP) ?
InnoEnergy Strategy: • Thematic areas Cover Energy value chain • Short term roadmap Identify Product / Solution need • Long term roadmap Identify winning technologies • Competence mapping Identify players with key knowledge • Innovation Readiness Level Classify the project/idea
Short term / Long Term Strategy and alignment