Smart grids and microgeneration

well-being, it is necessary to refer to technological tools that can provide solutions both for the mitigation of the individual impacts described in the previous chapters and for the realization of an integrated management system. A critical analysis aimed at defining an integrated approach in the urban environment, for the use of new technologies, has led to the identification of innovative techniques and systems considered indispensable for the virtuous development of innovative cities.

Smart Grids and Microgeneration

Microgeneration, or better Micro Combined Heating and Power (micro-CHP), usually refers to joint production of electricity and heat by a cogeneration plant with an output of less than 50 kW of electricity. In the most common configuration, a micro-CHP consists of a gasfired engine with internal combustion where mechanical energy is converted into electricity, and the waste heat is conveyed into a recovery system producing thermic energy. Microgenerators are technologically advanced devices, able to integrate or fully replace heating boilers, and provide, at least in part, the electricity needed for selfconsumption3 . The European Directive 2004/8/EC4 dedicated to the promotion of cogeneration in Italy was made operational by Legislative Decree 20/2007, which also regulates

3 Nextville, Micro-cogeneration: definition, market, potential, obstacles, http://www.nextville.it. 4 Directive 2004/8/EC of the European Parliament and of the Council of 11 February 2004 on the promotion of cogeneration based on a useful heat demand in the internal energy market and amending Directive 92/42/EEC.

several definitions within the energy sector, including cogeneration, small cogeneration units, and microcogeneration. Cogeneration is described in the Decree as a single process of energy generation, producing either thermic and electrical energy, thermic and mechanical energy, or thermic, electrical, and mechanical energy. Small cogeneration and micro-cogeneration units are defined as cogeneration units when they generate, respectively, less than 1 megawatt (MWe) and less than 50 kilowatts (kWe)5 . Several studies have been conducted at the European level on the development of the microgeneration sector and the opportunities connected with it. One of the most interesting is the CODE project6, co-financed by the European Commission, and the following CODE-2 project, which set up a market consultation in order to define Member states’ and EU roadmaps for cogeneration. The objective of microgeneration technology is to achieve energy efficiency by converting primary energy into heat and electricity at the end-user level. This process minimizes energy losses at the power grid level, and heat losses in centralized electricity production7 8 .

5 Legislative Decree n. 20 of 8 February 2007, Implementation of Directive 2004/8/EC on the promotion of cogeneration based on a useful heat demand in the internal energy market, as well as amendment to Directive 92/42/EEC (G.U. n. 54 of 6 March 2007). 6 European Commission, Intelligent Energy Europe, Cogeneration Observatory and Dissemination Europe (CODE) https://ec.europa.eu/ energy/ intelligent/projects/en/projects/code. 7 CODE 2 Cogeneration Observatory and Dissemination Europe, Micro-CHP potential analysis European level report, December 2014 http://www.code2-project.eu/. 8 As highlighted in the introduction of the European Parliament’s 2013 resolution on microgeneration, “Microgeneration must be an essential

Microgeneration is gaining importance due to the present high cost of energy production, along with the ever-increasing energy demand, and the need to minimize environmental impacts. The reduction in the size of energy production systems makes it possible to phase out large production plants, even those larger than 10 MWe, and to develop smaller production systems, with the aim of reaching a capillarization of energy consumed, allowing wiser planning of production and consumption. Such a new approach to precisely localized consumption and planning can be defined as Smart Energy, intended as an intelligent and efficient use of energy but also as an opportunity for a more precise evaluation of the energy produced. Constant collection of energy flow data allows consumers to be aware of their real-time energy consumption, and detailed production systems having a recommended or automatic management of energy flows, also connected to dynamic load profiles or economically convenient time-lapse. A similar integrated system will be able to

element of future energy production if the Union is to meet its renewable energy targets in the long term […]. It contributes to increasing the overall share of renewables in the EU’s energy mix and enables efficient electricity consumption close to the point of generation while avoiding transmission losses” and “states that microgeneration should contribute to the achievement of long-term objectives; therefore calls on the Commission and the Member States to improve the implementation of the strategies for smallscale electricity and heat generation contained in the current EU policy framework, thereby recognizing the importance of microgeneration and promoting its deployment in the Member States”, motion for a resolution 06.09.2013, tabled following question for oral answer B70217/2013 pursuant to Rule 115(5) of the Rules of Procedure on microgeneration - small-scale electricity and heat generation (2012/2930(RSP)) – Merkies J. A., on behalf of the Committee on Industry, Research and Energy.

manage other resources in addition to electricity, such as gas and water9 . Smart Energy is therefore a new system that favors small-scale plants and innovative fuels, minimizing environmental impact from production plants, reducing the final energy cost for consumers, standardizing energy demand, encouraging users to produce their own energy, using clean sources and making it available on the grid, and finally introducing high levels of automation and data management. Micro cogeneration is closely related to improved energy efficiency, decreased pollutant emission, and reorganization of local production and economic activities, therefore providing the dynamic and intelligent management that seems necessary in the urban context. Smart Grids, representing the evolution of traditional grids both in terms of electric generation and distribution and for system control, make a useful contribution to this goal. Smart grids are characterized by increasing flexibility in relation to external events, managing not only the transit of energy, but also bi-directional data flows. Consumers/users become at the same time energy producers and data consumers, and those intelligent grids can pursue efficiency objectives autonomously and in real-time. A smart grid can be designed through the widespread use of micro-generation, thus enabling the improvement of system efficiency, reducing distances and the unavoidable connected load losses and dispersions typical of large-

9 Maggi S. 2012, A tutta energia!, Fieldbus & Networks, pp. 56-58.

scale distribution grids. It can be designed as an integrated management of many small well-coordinated distributed power plants, in order to compensate consumption peaks, with continuous data flow, and also able to manage two-way energy flows. With the growing use of distributed renewable sources, and highly distributed microgeneration plants, mostly private, it becomes critical to have an efficient, centralized control of the energy distribution networks, bearing in mind that the generation capacity of renewable systems tends not to be very constant, depending on local weather conditions. The energy grids, equipped with smart sensors, with a continuous multidirectional data flow, managing all different sources of power distributed along the network, and under central management control, will became what we can think of as an “Internet of Energy”. However, in order fully to implement this new vison of smart grid, all electric devices and every microgeneration system will have to be smartly connected to the grid, in order to constantly exchange data, communicate in real-time with the control center and with other devices on the network10 . The most comprehensive definition of a Smart grid emphasizes the following three aspects:

• sensing, automation, and communication

technologies, designed both to increase grid reliability and integrate renewables and diffuse sources, keeping in mind the potential growth of electric vehicles;

10 Bellifemine F. L., Borean C., De Bonis R. 2009, Smart Grids: Energia e ICT, «Notiziario Tecnico, Telecom Italia», anno 18, n. 3.

• smart metering systems, installed at the level of final users/consumers, in order to stimulate peak reduction, mainly through appropriate pricing policies; • appropriate smart interfaces between the smart metering systems and domestic technologies/ apparatus, allowing customers to see their consumption profile in real-time even on single domestic appliances, monitoring also remotely via smartphone11 12 . This is a completely different system compared with those presently in use. The present model of centralized energy grid control foresees automatic interactions only for basic functions, requiring human intervention for any advanced request. The future smart grid is an energy network, fully equipped with smart sensors, intermediate actuators for automatization of the grid, communication nodes, control and monitoring systems. It is a network with different reference scenarios and where the energy cost is adjustable over time: final user metering will communicate with user devices that, in turn, coordinate to adapt the consumption profile accordingly13. In order to create a network that enables the development of a smart grid, a structure made up of other networks is required, which can be summarized as follows: • local domestic, to interconnect the meter systems of energy utilities with local monitoring and control

11 AARP, National Consumer Law Center, National Association of State Utility Consumer Advocates, Consumers Union, and Public Citizen 2010, The need for essential consumer protections. Smart metering proposals and the move to time-based pricing. 12 Goldoni G. 2012, Regulation&Deregulation. Le sfide della Smart grid, Energia, n. 4, pp. 40-54. 13 Bellifemine, Op. cit.