Smart Grids in Germany

Fields of action for distribution system operators on the way to Smart Grids

www.zvei.org www.bdew.de
2 |

Index

Smart Grids in Germany

Fields of action for distribution system operators
on the way to Smart Grids
1. Foreword ................................................................................................................. 5

2. Introduction ........................................................................................................... 7

3. The distribution network today and tomorrow .................................................. 9

4. BDEW survey .......................................................................................................... 11

5. Fields of action on the way to Smart Grids .......................................................... 13

5.1 The basis: network sensor systems .......................................................................... 13
5.2 Management / control combined with distribution network automation .......... 14
5.2.1 Controllable local network substations ......................................................... 16
5.2.2 Controllable inverters capable of feeding reactive power into the grid .... 18
5.2.3 Communication and data infrastructure ....................................................... 18
5.2.4 Network control technology ........................................................................... 19
5.3 System-oriented feed-in and withdrawal ............................................................... 20
5.3.1 Photovoltaic plants and wind turbines .......................................................... 20
5.3.2 Heat pump systems .......................................................................................... 21
5.3.3 Mini / micro combined heat and power plants (CHP) .................................. 21

6. Future options: storage technologies ................................................................. 23

7. Regulatory conditions ........................................................................................... 29

8. Conclusions ............................................................................................................ 31
| 3
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We particularly thank the following companies

that have enabled by their contributions the
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1. Foreword

Dear Readers,

the German energy system has been going through change for some years. Also in future the pending upgrade of the energy system depends on
Renewable energies meanwhile account for more than 20 percent of elec- finding the right balance between the three objectives of an environmen-
tricity generation; for the most part, they are fed into the distribution and tally friendly but also secure and affordable energy supply. Together with
transmission systems irrespective of demand. As a result, today‘s electricity merely demand-oriented development of distribution systems, “smart“ new
supply is already subject to considerable intermittent fluctuations. technologies and applications can also be used to optimise network capacity
for the fullest possible integration of renewables-based intermittent gener-
The increasing share of renewable energies means that this development ation into the energy system, while still maintaining the high quality of supply.
is going to continue. It has to be brought in line with what has always
been a fluctuating demand. Making the distribution systems efficient leads to greater demand for
metering, control and automation. For the distribution system operator, it
While electricity used to flow from high to low-voltage levels, there is now is important to identify the key technologies and their effectiveness. The
an increasing trend to backflows from lower to higher voltage levels. It is question arises as to what technologies are already available today and
essential for network infrastructures to be adjusted to these bidirec- what potential they offer for solving the specific problems of distribution
tional electricity flows. The energy transition and the accelerated de- systems.
velopment of renewable energies will lead to a further increase in the
challenges to transmission and distribution systems. The German Association of Energy and Water Industries (Bundesverband
der Energie- und Wasserwirtschaft – BDEW) and the German Electric and
Integrating renewable energies into the grid will entail the expansion and up- Electronic Manufacturers’ Association (Zentralverband Elektrotechnik-
grading of large parts of the network infrastructure. Together with the in- und Elektronikindustrie – ZVEI) have worked together in analysing these
crease in the transmission system’s transport capacities, the BDEW has also questions and give recommendations on the concrete start-up of Smart
underlined the considerable need for development in the distribution system1. Grid technologies.

Roger Kohlmann, BDEW Dr. Klaus Mittelbach, ZVEI

1
Cf. BDEW-Verteilnetzstudie 2011 (www.bdew.de)
6 |

Generation

Biomass

Conventional power stations

Photovoltaic

Hydro power

Wind power

Marketplace
of the future

Energy services

Energy supplies Communicatio

Energy trading ation and n Tec
form
– In hno
log
IC T y
Smart Grids
Intelligent Energy Networks Transit

Smart Meter

Gateway
Storage
Smart Customer 
Batteries

Compressed-air energy

Households storage facilities

Industry 
Natural gas storage facilities /

Trade Power-to-Gas

Cold, heat storage facilities

Pumped-storage power
Electric stations
Mobility

Definition of “Smart Grid”: A Smart Grid is an energy network that integrates the consumption and
feed-in patterns of all market participants connected to it. It ensures an economically efficient,
sustainable supply system with low losses and high availability.
 | 7

2. Introduction

Germany is pursuing ambitious targets in terms of the development of Many key technical solutions are already available. In order to achieve
renewable energies. Until 2020, their share is to be increased to at least the 2020 or 2050 target scenarios while maintaining the high security of
35 percent related to electricity consumption. In 2050, 80 percent of supply in Germany, it is necessary today to lay the basis for the functio-
electricity consumption is to come from renewable energies. To make it ning of tomorrow’s energy system. This requires capital expenditure in
easier to reach these targets, electricity consumption is to be reduced smart and energy-efficient technologies and upgrading of the existing
by 10 percent until 2020 and even by 25 percent until 2050. grid infrastructure. At the same time, these investments promote growth
and employment and make sure that Germany as a location for industry
At times, renewables-based electricity already exceeds the transport is given a chance to establish itself as a global leading market and lea-
capacity of some network areas (see information box on the right). It is ding supplier of Smart Grid technologies.
essential to control these energy flows by means of smart system ma-
nagement. Generators, networks, suppliers and consumers are called
upon to act in a flexible manner in their common interest. This requires /PSUIFSO
(FSNBOZ
new information and communication technologies in the grid. Smart The development in Northern Germany shows that the future has already
Grids are intended to contribute to improved integration of decentralised begun in certain networks. Here, network operators already issue war-
energy generation and the necessary coordination of generation and nings about overloading of energy networks due to the rapid develop-
demand, while generating greater customer benefit. To this end, it is ne- ment of renewable energies in rural and windy regions. In and around
cessary to develop business models which provide appropriate incentives. Lower Saxony today, the installed renewables-based feed-in capacity
exceeds the annual maximum load by almost 70 percent. Already 50
Network development and modernisation must henceforth go hand in percent of the total electricity volume transported by certain network
hand with the development of generation from renewable energies. Any operators originates from renewable energy sources.
investment in renewables-based generation must be accompanied by
investments in the grid. Otherwise, further system integration of rene- Southern Germany:
wable energies will be restricted by the lack in network infrastructure. Bavaria has seen a considerable increase in the number of photovoltaic
Regulation has to allow network operators to proceed with the neces- plants over the last two years. More than 350,000 photovoltaic plants
sary capital expenditure in infrastructures. The use of energy lines with with a capacity of more than 7,000 MW are currently connected to the
additional “smart” functions can ensure the enhanced communicative network. This figure not only exceeds the Bavarian demand during low-
interconnection of network installations which will be required in future. load hours but it also corresponds to about 35 percent of the PV capacity
Today already a wide range of power cables are available with integrated installed throughout the country, and far exceeds the installed total PV
glass fibre elements for information transfer and online cable condition capacity in the USA of 3,000 MW.
measurements.
8 |

110kV Today 110kV Tomorrow

Generation at the
medium-voltage
level

Unidirectional Generation /
energy flow consumption
at the low- Bidirectional
voltage level energy flow

20kV

0.4kV

Smart
Meter

Uncontrolled distribution Energy storage Controllable distribution Electric car

network transformer facility transformer infrastructure

Radial system Meshed system

Single protection Differential protection of lines
No / simple automation Comprehensive automation
No / simple communication Bidirectional communication

Germany’s electricity supply is currently based on a reliable and powerful network infrastructure.
But to manage the energy transition, it is essential to keep distribution networks efficiently in
balance by means of sensor, management and control systems depending on the relevant requirements.
 | 9

3. The distribution network today and tomorrow

Germany’s electricity networks have been the most reliable in Europe for ticularly through the feed-in of increasing amounts of energy from wind
decades. Electricity customers only have to expect power interruptions of power and photovoltaic. More information and control possibilities will
16 minutes on average during the year. This corresponds to a reliability of have to be available in order to keep the network efficiently balanced,
99.99 percent. More than 800 electricity network operators maintain and working in cooperation with electricity producers and consumers. The
operate Germany’s networks covering a distance of 1.78 million kilome- need for these functions will continue to grow: greater use of decentra-
tres. For the most part, these are low-voltage networks, connected by lised volatile feed-in and the expansion of electric mobility in the field
regional distribution networks (medium and high voltage) to the extra- of individual passenger traffic together with additional controllable load
high voltage grids. The existing infrastructure of distribution networks will make further demands on the networks and their operators. Further
has developed over decades. A large part of the network elements have improvements in energy efficiency will also be a driver for making the
been used since the sixties and seventies and were not designed for the medium and low-voltage distribution networks fit for the future.
intermittent feed-in of renewables-based electricity. Moreover, hitherto
passive customers are turning into active market participants, the so-
called “prosumers”.
Transformation of energy supply


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Targets of the German Federal Government’s energy concept

The medium and low-voltage distribution networks are changing into a 80

multidirectional dynamic network. Monitoring and control of this system Development of photovoltaic
are a prerequisite for keeping the network efficiently balanced, working 70 Æ

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fact that every distribution network must be individually assessed in terms
of its network structure (e.g. consumers and generators connected to it)
50
and public infrastructures (e.g. load and population density).
40
In the past, distribution networks were operated in a single direction to
distribute electricity from the higher voltage level, with the network 30

structure designed for this specific task. Through to today, only very few **

distribution networks proceed with detailed visualisation and analysis of 20

the network situation together with real automation. Furthermore, only

10
limited use is made of the efficiency of control and regulation possibi-
lities. This must be changed if the energy transition is to be managed.
Transmission and distribution networks must respond even faster and % <1998 1998 2005 2008 2011 2020 2030 2040 2050

more frequently to changes in generation and load-flow directions, par- * Related to gross national electricity consumption in Germany ** Provisional figure
10 |

POTENTIAL

t Block-type heat and t Controllable local network t Controllable loads / storage facilities
power station substations / transformer substations t Control / management units
t Communication and t Heat, cold applications
data infrastructure t Biomass plants t Heat, cold storage facilities
t Controllable wind power t Controllable mini / micro CHP
t Controllable photovoltaic t Controllable photovoltaic (small) t Electrolysis / methanisation
t Sensor systems in the network t Voltage quality components
t Heat-pump plants t H2 storage facility
t Network control technology
t Processes adjustable in time
t Battery systems
t Components for reactive
t Electric mobility
power compensation
t Geothermal energy
t Pumped-storage hydro
t “White goods“
power stations

>2030 > 2020 2012 PROXIMITY TO

THE MARKET

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 technical and economic availability at the present time

Ï1PUFOUJBMÐ
 contribution to safeguarding network quality in technical terms and to
efficient network loading in economic terms
 | 11

4. BDEW survey

The energy transition is taking place in the distribution networks: more The experts’ analysis of market proximity focussed on how the technical
than 90 percent of renewable energies are connected to these networks. and economic availability of the different components is currently rated.
Already today, many distribution network operators are therefore facing The potential was evaluated by identifying components that contribute
the task of not only extending the network but of making it as “smart“ to safeguarding and improving system stability and to efficient network
as possible at the same time. loading or efficient network operation.

In cooperation with distribution network experts, the BDEW has analysed The experts’ analysis has shown that 15 components can currently be con-
technical components that may offer a particularly great potential and sidered as promising. It is unlikely that the potential of the remaining
that today are already considered to be relatively close to the market (or components can be tapped in the short term. Additional R&D efforts
ready to be put on the market). have to be undertaken here in order to put these components success-
fully on the market. The results of this analysis are represented below,
This analysis was reviewed together with experts from the manufacturing with descriptions of altogether eight technical components which cur-
industry organised within the ZVEI. The result of this review led to the pre- rently appear to be particularly promising, also taking a look at how
sent evaluation of 25 technical components from the areas of networks, these interact.
buildings, generation / storage and information and communication tech-
nologies in terms of their potential and their market proximity (see dia-
gram on page 10).
12 |

20 KV / 2000 A / 20 KA
Measuring sensor system medium voltage (MV)
110 KV 20 kV
63 MVA Measuring sensor system / meter low voltage (LV)
N1

N1 Network control medium voltage

Task:
- Maintenance of voltage range
- Avoidance of overload (feed-in)

Input variables:
- Voltages and currents of medium-
voltage sensor systems

Control variables:
- Active and reactive energy
(feed-in of decentralised generation)

N2 Network control low voltage

20 kV 400/230V 20 kV 400/230V 20 kV 400/230V
240 KVA 240 KVA 630 KVA Task:
N2 N2 N2
- Maintenance of voltage range
- Avoidance of overload
(feed-in, demand)

Input variables:
- Voltages, currents and network
asymmetry of low-voltage
sensor systems

Control variables:
- Active and reactive energy
(feed-in of decentralised generation,
control / switching of loads /
charging converters

The installation of sensor systems to identify the network situation becomes a “must” of smart network
use and control. This involves appropriate IT infrastructures for information processing.
 | 13

5. Fields of action on the way to Smart Grids

5.1 The basis: network sensor systems

The implementation of a system-optimising network, feed-in and de- Other advantages from the use of Smart Meters benefit retailing and sales
mand-side management necessitates an improved information basis aspects rather than the network operator and are thus not the focus of
for all players in the energy system. this analysis.

Knowledge about current network conditions needs to be improved to These include:

ensure that networks in Germany can continue to provide a high quality Æ optimisation of consumption profiles and forecasting
of supply. Only on this basis will it be possible for instance to proceed Æ possibility of new tariffs and demand-side management
with reasonable load management, a norm-compatible maintenance Æ processing of data for the customer and, where possible,
of the voltage range or an assessment of network segments loading. provision of energy efficiency services
Setting up network sensor systems for identifying the network situa-
tion is therefore practically a must for smart network use and control The information obtained from network sensor systems facilitates opti-
where required by the consumption and load structure in the affected mum network utilisation, combined with the use of technologies descri-
network area. This also involves a corresponding IT infrastructure for bed below. It is essential to have comprehensive knowledge about the
information processing (see section 5.2.3 on communication and data key system parameters (voltage, current strength and frequency) in or-
infrastructure). So there is a need to invest in the development of com- der to determine the system-stabilising instructions to active compo-
munication links, server structures and computing centres. nents (adjustable / controllable feeders and loads) and network elements.
Apart from sensor systems, temperature monitoring may also provide
Network sensor systems provide a wealth of current measured values. information about the actual loading of cable runs.
These values can be supplemented at selected points by additional
measurements, using Smart Meters. The Smart Meter is capable of
providing system condition data that may be used for network control
or asset management.

The Smart Meter lets the meter operator proceed with remote meter
readings. Under certain conditions, this may lead to savings in operating
costs. However, additional system costs are also incurred so that the
aforementioned potential savings may be overcompensated particularly
in densely populated areas where further synergy effects will have to
be used for an economically efficient utilisation.
14 |


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Cost-efficient measures and concepts for network operation will be a key Smart local network substations
factor for economically efficient energy supply to meet the requirements One essential target for making local network substations “smart“ is to
of customers and of the regulatory framework. maintain the reliability of supply. Outage durations of equipment (not
customers) currently last for several hours because service teams first
Essential reasons for capital expenditure in the automation of distribution have to localise the fault before organising fault clearance. Even short-
networks include among others: circuit indicators bring little improvement. Outage periods can be further
Æ
integration of decentralised energy generation into distribution networks reduced by using remote control devices with functionalities exactly tail-
Æ
upholding the high reliability of the distribution networks / enhancing ored to the specific tasks. Current fault clearance operations still entail
the quality of distribution networks and avoiding of negative impacts travelling times: omitting these leads to a further essential reduction of
on the voltage quality outage periods and costs.
Æ
improvement of the operation and maintenance of distribution networks
Æ
fast disruption analysis and fault location The highest possible reduction of outage periods will therefore only be
Æ
monitoring of the existing infrastructure and strategic management of achieved by efficient automation going beyond mere remote control. The
capital expenditure devices offer a high level of integrated performance with automation, re-
Æ
load-flow transparency mote control, communication and some protection functionalities so that
Æ
active dispatch and re-dispatch of load in the operation of we can speak of an “Intelligent Electronic Device” or “Smart IED” (see
distribution networks diagram on page 15).
Æ
use of sophisticated technologies for communication nodes with
broadband infrastructures Smart IEDs can be used for full automation of distribution networks,
whereby the restoration of supply can be implemented by means of
Economic analysis restricted just to the use of individual technologies is not switching logic without the use of service staff. Decisions can be based
appropriate. Investment in only partial aspects will fail to utilise the optimi- on both switch position messages and also the current load situation.
sation possibilities, as illustrated by the large number of described benefits. Respective communication in future will be facilitated by networks using
In many cases, potential for efficiency is only derived from combining new the international system standard IEC 61850. This worldwide system stan-
technologies together with the associated possibilities of automation. dard enables smart IEDs to exchange data and provide information about
the current network condition.
It must be borne in mind that distribution network automation is not ne-
cessary on a comprehensive scale, but depends on the challenges faced
in the respective network.
 | 15

Network Control Centre

20kV

Illustration of the interaction between the

network and substation control centre of Decentral
generator 3
smart local network substations
Representation of the remote fault analysis
and remote control function of a smart IED Substation
after failures Control Centre

Wireless
and wire-based Decentral
communication generator 1

Medium-voltage level

Smart IED
Intelligent local
network substation

Fault location remote fault analysis

and remote control in combination Decentral
with other local network substations generator 2

Low-voltage level
Smart Meter

Smart Meter

Smart Meter
as sensor system
16 |

Examples of voltage quality measures pared to a network development. A further measure consists in using
The availability of low-cost solar technology and the funding instruments a controllable inverter capable of feeding reactive power into the grid.
of the Renewable Energies Sources Act (EEG) have led to widespread use Depending on the kind of feed-in, the two approaches can facilitate opti-
of photovoltaic systems in many network regions. Approximately 25 GWp mised grid operation while simultaneously reducing adverse effects on
of photovoltaic had already been installed in Germany through to the end the network. The two technologies described in greater detail below offer
of 2011. The currently installed capacity of wind turbines amounts to a significant potential for minimising the costs related to the necessary
good 29 GW. Onshore wind use accounts for by far the largest share with network development.
corresponding relevance for the distribution networks. The considerable
increase in volatile energy generation poses new challenges to the me- However, this presumes that a certain intelligence is available (smart IED
dium and low-voltage networks: Load fluctuations, changes in load-flow in the local network substation and systematically distributed measuring
directions and maintenance of the voltage range prescribed according sensors in the network) for performing optimum control adjusted to the
to EN50160 can only be managed by the simultaneous development of network situation.
infrastructures and additional intelligence at the distribution system level.
5.2.1 Controllable local network substations
High solar irradiation or strong winds lead to a rise of voltage whereas Measuring sensors installed at strategically selected places in the low-
clouds and wind calms give rise to voltage drops which have to be com- voltage network, e.g. at the end of distribution and at important loads,
pensated by the network. In comparison with unidirectional distribution, are used to transfer the measured values to the next higher node in a
only half the voltage range is available for offsetting the effects. This hierarchy, in this case to the smart IED installed in the local network sub-
affects both the medium and the low-voltage networks. Both network station. Algorithms specifically developed for that purpose are respon-
levels are directly connected via the transformers in local network sub- sible for computing the necessary transformer tap, which is adjusted
stations so that management of the voltage range must always be con- automatically by the smart IED. Controllable local network transformers
sidered for the two network levels together. effectively solve the problem of voltage range infringement (admissible
range: +/- 10 percent).
Contrary to the low-voltage level, feed-in into the medium-voltage level
today takes place in many cases through tap-changing transformers
which can be used for voltage stability by corresponding regulation. Experience gained from pilot projects shows that about 90 percent of
Nevertheless, it has to be assumed that larger decentralised generating voltage deviations can be offset by using controllable local network
plants will lead to a substantial increase in the range of voltage fluctua- transformers. Where converters capable of feeding reactive power into
tions in the medium-voltage network. the grid are also available in the respective network segments, they may
also be used to support voltage stability. Controllable local network
Where problems in terms of voltage range may arise in spite of an adjust- transformers for low-voltage networks are likely to go into series pro-
ed power factor, the use of a controllable transformer has to be com- duction from summer 2012.
 | 17

Controllable local network transformer

Voltage range violations can be
effectively remedied.
18 |

5.2.2 Controllable inverters capable of feeding reactive 5.2.3 Communication and data infrastructure
power into the grid The communication infrastructure will be the backbone of future Smart
Modern converters are capable of functioning in 4-quadrant operation. Grid systems. Without communication links it will not be possible to use
They can simultaneously absorb or supply reactive power to the net- information and proceed with the resulting targeted control of actu-
work during both active power supply (photovoltaic plants, wind power, ators in the grid. It seems reasonable to use IEC 61850 which provides
batteries etc.) and active power absorption (recharging of storage faci- well-established communication standards in energy distribution. The
lities and electric cars). It is thus possible to integrate inverters into the IEC 61850 allows secure and effective data exchange between smart IEDs
network management and to compensate active power conditioned and the shared use of sensors and actuators. In addition to international
voltage deviations at the network feed-in point by reactive power. IEC standards, it is possible to apply protocols such as M-Bus or Modbus
RTU for interaction with technologies from the field of building control
By specifying characteristics (parameter settings) at the converter, re- systems and already existing communication-capable meters.
active power is compensated today up to a value of cos Ø = 0.9 (over-
excited or underexcited, respectively) depending on the active power Networked or wireless communication technologies can be used as trans-
feed-in or the network voltage measured at the point of connection. mission media. Networked options are glass fibre networks, copper net-
works (with xDSL), narrowband PLC and broadband PLC. Wireless options
The optimum solution however consists in the direct integration of con- include GSM, UMTS, LTW, WiMax, directional wireless, digital mobile
verters into an automated control of a smart local network substation. radio (DMR) and Tetra. However, attention always has to be paid to the
The measured data of the converters are transferred to the central con- necessary transmission rates and aspects of data security. The disadvan-
trol unit of low-voltage distribution of the smart local network substa- tage of public networks such as GPRS is that supply segment transmitters
tion. The smart IED computes the optimum target values for the net- are not available in the event of network disruptions so that it will not be
work and controls reactive power compensation of the inverters at the possible to reach the local network substation. Using the energy utility‘s
feed-in points. own infrastructure makes it possible to reach local network substations
and other elements of the distribution network structure over the entire
Apart from voltage control in the admissible voltage range, it is also supply area. The same applies to power line communication: in this
possible to prevent potential oscillations of the network voltage and case, the existing distribution network is used, evading out-of-range
optimise the distribution network’s loading. problems as in the case of wireless links. Consistent implementation of
the common system standard IEC 61850 across all voltage levels provides
the precondition for standardised communication and data infrastruc-
According to expert opinion, under certain conditions the use of smart tures. This is a necessary prerequisite for the economic development of
control together with new inverters and a smart local network substa- distribution network automation. Modular network development and
tion (smart IED) can bring about local improvements in the loading of reorganisation will guarantee the compatibility of old and new communi-
existing distribution network infrastructures by 20 to 25 percent. cation infrastructures.
 | 19

5.2.4 Network control technology

On the basis of the technical components described above, numerous ers. On that basis, maintenance work can be carried out systematically
new applications / algorithms are available to distribution network op- and certain types of cables or cable joints can be included in a compo-
erators for automation and control. Once tripped by protection relays, the nent replacement programme. Asset management software supplied
fault analysis collects the data provided by the protection equipment and with operational information from the distribution network thus permits
short-circuit indicators, then determining the fault location with the grea- efficient replacement at minimum risk together with a maintenance stra-
test possible precision, based on the known network topology. This area tegy, while simultaneously reducing the risk of failure caused by primary
can be automatically reconnected after isolation of the fault location. components as a result of previous damage or ageing stress.

The data available from the network control system enable much better The medium and low-voltage networks are optimised by decentralised net-
conclusions to be drawn for network planning and asset management. work control technology applications in the smart IEDs of local network
Hitherto, asset strategies were mainly based on the installation date and substations. They control the network segments in terms of voltage range,
the manufacturers’ specifications regarding equipment, and also on fault load flow etc. independently based on targets set in the network control
statistics. The availability of online data enables the evaluation of further centre. The new applications for network control technology include in
valuable assessment criteria or overload times and currents of transform- particular the feed-in management described in greater detail below.
20 |

5.3 System-oriented feed-in and withdrawal

5.3.1 Photovoltaic plants and wind turbines

In some regions, distribution networks are already reaching their capacity Based on the current load-flow situation, the loading sensitivities of the
limits as a result of the development of generation based on photovol- different operating elements to the level of injections are determined
taics and wind. Network operators endeavour to ensure the complete online. The network control system automatically prepares an EEG report
integration of renewable energies into the grid. However, it is becoming for publication.
apparent that in spite of appropriate optimisation, reinforcement and de-
velopment measures it is not possible to keep pace with the rapid expan- Should the network load increase it is no longer sufficient to analyse only
sion of renewable energies. This may lead to situations where unlimited the current network condition. The future network condition can be cal-
feed-in of all renewable energies is temporarily not possible. culated on the basis of demand and supply forecasts and the knowledge of
notified switching measures. This provides the control centre staff with
Experts assume that curtailment or storage of 3 to 5 percent of the gen- greater security to determine and initiate countermeasures if necessary
erated annual energy during the period until 2020 and possibly even up in case of expected overloads.
to 2030 can double the network connection capacity in particular cases. 2 VDE application rule N-4105

The feed-in management in terms of wind and photovoltaics thus offers

great optimisation potential to distribution network operators. Example: Annual photovoltaic duration curve
WK*
EEG plants (generating facilities using renewable energies under the Re-
350
newable Energy Sources Act; German abbreviation: EEG) with a capacity
of more than 100 kW are already controllable today and thus offer the
300
possibility of feed-in management under the provisions of the EEG. In Dimensioning of the network for
very seldom maximum load
future, this feed-in management will also gain in importance in the low- 250 is not reasonable.
voltage level; special focus: photovoltaic plants (cf. Article 6 in conjunction
with Articles 11, 66 EEG 2012). Controllable inverters already provide the 200

appropriate technologies for the control of wind turbines and photovol-

150
taic plants.

100
In case of a potential risk to the network, network operators must reduce
decentralised feed-in by steps of 0/30/60/100 percent2. This is supported
50
by the network control system with automatic combination of renewa-
bles-based feed-in at several levels (“visualisation”) and with provision 0
of making the relevant dialogues and instructions (“control”). This can 1000 2000 3000 4000 5000 6000 7000 8000 Time [h]

take place at the level of an individual plant, a medium-voltage bay or a * Active power in kW Source: Investigation of EWE Netz GmbH

transformer station.
 | 21

5.3.2 Heat pump systems 5.3.3 Mini/micro combined heat and power plants (CHP)
Based on thermodynamic principles, heat pumps use ambient heat (earth, CHP means the combined generation of thermal and electrical (mecha-
water, air) to provide up to five times the electric driving energy as useful nical) energy. The resulting heat is produced locally at the consumer’s
energy for heating and cooling. It can be switched and controlled without premises and can be used for heat supply to the building. The resulting
any loss in convenience (if a system for sufficient heat storage exists) and electricity can be used to cover the producer’s own demand or fed into
thus provides potential for being used in Smart Grids. Heat pumps can the electricity network.
store local feed-in surpluses from wind turbine and photovoltaic plants
in the form of heat. Depending on the legal provisions, many network The term “micro CHP” refers to the smallest CHP plants. They can replace
operators consider that heat pumps offer great potential for system re- old inefficient plants in buildings. Larger facilities (“mini CHP”) can also
lief through local use of electricity from photovoltaic plants. feed electricity into the supply network for system support purposes.
Provided there is adequate availability, the output of mini CHP plants can
Heat pumps can be used in a flexible manner and controlled e.g. via a be reduced or increased after load shifting of controllable loads to cover
price signal (sales-oriented load management). A substantial potential the remaining energy demand. To this end, it makes sense for the block-
for load management is already offered today by the existing heat pumps type heating and power station to be also equipped with a correspon-
with a total number of approximately 450,0003. In order to extend the dingly dimensioned heat storage facility for current-regulated operation.
useable output and the period of time while offering relevant amounts Besides, it is conceivable that pooling, with other electricity generating
of control energy, individual heat pumps can be pooled and combined to plants to form major capacities (virtual power stations) can make a sig-
form virtual major consumers. By local network integration, heat pumps nificant contribution to balancing group management (balancing energy,
are ideal particularly for purposes of decentralised system relief. Additio- control energy).
nal capital expenditure in larger buffer storage facilities or with buildings
of high thermal storage capability can integrate heat pumps into a regio- Market proximity can be considered as medium to high. It is essential to
nal load management over considerably longer continuous periods. develop current-regulated operation with adjusted heat management
(e.g. heat storage facilities) for shifting electricity and heat demand in
The main potential for heat pumps currently lies in the field of heating terms of time, as well as the necessary control mechanisms.
and frequently coincides with seasonal wind peaks. Hot water use can
be utilised for load balancing throughout the year. Additional potential
may be obtained from the reversible operation of heat pumps for cool-
ing which seasonally coincides with photovoltaic feed-in, and from the
4
generation of industrial process heat and cold .
3
The Bundesverband Wärmepumpe - BWP (German association for heat pumps) expects that
about 1.2 to 1.5 million systems will be installed by 2020 representing a rated electrical output of
approximately 4,400 MW. Depending on the framework conditions, the BWP expects that 2.0 to
3.5 million heat pump systems will exist in 2030.
4
In some cases, cold storage (e.g. air-conditioning of large buildings in the service sector) offers
large potential that can be tapped without major technical efforts.
22 |

Renewable Energies

Excess Oxygen Gas Network

Solar Power

Hydrogen

Excess
Wind Power

Gas Storage

Electrolyser Gas Customer

Water CO2
CO2
Segregation

Waste Gas *Methane Synthesis

Energy storage by connecting electricity and gas networks (Power-to-Gas) offers

great potential for making future excess renewables-based electricity usable to
the energy system and offsetting seasonal fluctuations.
 | 23

6. Future options: storage technologies

Storage facilities are capable of absorbing “excess” energy at times of Many storage options at different stages of development are currently
high feed-in from renewable energies and making this energy available being investigated (such as batteries, compressed air storage, cold and
again in case of demand. This enables generation and demand peaks to heat storage, power-to-gas or flywheels). Batteries are considered to be
be managed and additional wind and photovoltaic generation capacity promising for short-term storage, whereas the Power-to-Gas technology
to be utilised without requiring network development, provided that the is taken into consideration rather for storage over longer periods of time.
storage facility is located close to the generator.
Batteries are generally available in technical terms. Their chief point of in-
Storage facilities provide distribution network operators with the fol- terest is in the flexibility they provide, and they may be capable of making
lowing system services: excess electricity from renewable energies usable for the energy system.
In future, intelligent connection of the electricity network with central
Æ Capacity support by shifting feed-in from peak to base-load periods and decentralised batteries could be part of efficient load and genera-
Æ Dynamic voltage control through feed-in / consumption of active and tion management. Electrochemical energy storage facilities offer great
reactive power potential for the future. R&D efforts should mainly focus on higher power
Æ System support in the event of component failure density, lower weight, longer service life (number of charging cycles) and
efficiency. In terms of the economic efficiency of battery, due considera-
Today already, storage facilities are an essential instrument at the medium tion must be given to a clear decline in marginal unit cost resulting from
and high-voltage level for system stabilisation in the daily load profile, in economies of scale.
the event of system disruptions and for network restoration. By providing
control and reactive power, electricity storage facilities make an impor- Power-to-Gas technology (PtG) would appear to be interesting especially
tant contribution to network security. under the aspect of flexibility and linking the electricity and heat or gas
market; it could make excess renewables-based electricity usable to the
With regard to available electricity storage technologies, pumped-stor- energy system. But primarily, PtG is currently the only option for long-
age power stations represent the only currently available large-scale term bridging of regular shortfall phases during which intermittent sour-
technology for electrical energy storage that has been successful for ces of renewable energies are not available. R&D efforts should focus on
decades. The aim of current research projects therefore is to make this more efficient conversion, reduced costs, smart interconnection and flex-
storage technology also available to smart distribution grids by means ible control of electrolysers, together with the development of efficient
of technological innovations. catalytic processes for methanisation.
24 |

%S
&SJL
-BOEFDL
Vattenfall Europe Distribution Berlin GmbH
Speaker of the advisory group “Smart Grid” in the German Association of Energy and Water Industries (BDEW)
 | 25

Expert statement
%S
&SJL
-BOEFDL

"SF
FMFDUSJDJUZ
OFUXPSLT
BMSFBEZ
GJU
GPS
UIF
FOFSHZ
USBOTJUJPO
So standardisation is the prime precondition for

or do they still need to be upgraded into Smart Grids? the energy transition?

%S
&SJL
-BOEFDL Frequently the simple formula is used that “energy %S
&SJL
-BOEFDL Today’s networks have already enabled the rate of
transition equals Smart Grid”. But we need to make a differentiation renewable energies to increase to more than 20 percent. Further inte-
here. On the one hand, the energy transition is aimed at making sufficient gration of renewable energies depends primarily on network develop-
transport capacity available at the level of distribution and transmis- ment – some would say “classical network development”. Furthermore,
sion system operators. On the other hand, it is necessary to ensure a essential principles are being established together with the customers
continuous balance between power supply and demand. This means that for disconnecting major renewables-based plants. In addition, many
the necessary transport capacity needs to be made available by further network operators are exploring new smart technologies which among
development of the networks. Moreover, it is imperative to develop new others increase the transmission capacity of networks. All this will help
intelligent operation concepts and technologies which help to balance when it comes to the implementation of standards. But it is also true
consumption and generation. These technologies are then frequently that network operators are currently facing higher costs at the present
designated as components of a “Smart Grid”. stage, and that the regulatory framework does not provide for an ac-
knowledgement of the costs involved in this development work.
So there are no Smart Grids yet today?
)PX
DBO
NBOVGBDUVSFST
BOE
UIF
FOFSHZ
TFDUPS

%S
&SJL
-BOEFDL Given the increase in decentralised feed-in, particu- optimise cooperation?
larly with the control options to be used for loads and injections, sensor
systems will have to be installed for monitoring in distribution networks. %S
&SJL
-BOEFDL
The cooperation between ZVEI and BDEW for prepar-
Smart Grid technologies are integrated in an evolutionary manner when ing this joint brochure is a good example. The goal is to describe the
and where it becomes necessary. Demand in rural areas with a higher concrete challenges faced by networks as a result of the energy tran-
rate of renewables-based generation differs from that in urban networks sition and to develop a realistic idea of the necessary smart technolo-
which are rather influenced by block-type heat and power plants and gies. The term “Smart Grid” is certainly used in an almost inflationary
electric mobility. The same “Smart Grid solution” therefore does not fit all manner. We should try first to develop and standardise the essential
network problems or tasks. It is already foreseeable today that the many technologies.
hundreds of thousands of loads and generation plants should not be
equipped with proprietary control devices. Standardisation is the only way
to reach optimum benefit to the customer, the necessary data protection
and above all the requisite network security.
26 |

Ralf Christian
CEO Low and Medium Voltage Division, Infrastructure & Cities Sector, Siemens AG
President and CEO of the ZVEI specialist Association and Member of the ZVEI Board of Managing Directors
 | 27

Expert Statement
Ralf Christian

Where are Smart Grids developing already today?

Ralf Christian: Generally it can be said that Smart Grids are on the advan- tion technologies are required. However, at the moment, the communi-
ce, given the ever increasing complexity in the requirements for network cation infrastructure and controllability at the medium and low-voltage
management and load management. The municipality of Wildpoldsried levels is mainly heterogeneous. Overall, the intelligence in the networks
in the southern Bavarian region of Allgäu shows how Smart Grids can func- needs to be increased. Various technologies are already available for that
tion. Residents generate twice as much electricity from renewable en- purpose: from smart local network substations and demand-response
ergies than they need for their own demand. The installed Smart Grid solutions to Smart Meters. Furthermore, software applications help to
ensures stability and balances generation and demand. There are many determine the optimum design of the network.
other initiatives, such as the „E-Energy“ funding programme which is
currently testing Smart Grid technologies in six model regions throughout What information do manufacturers need from network operators?
Germany.
Ralf Christian: In order to support the development and reconstruction
)PX
VSHFOU
JT
UIF
OFFE
GPS
BDUJPO
JO
EJTUSJCVUJPO
OFUXPSLT
of networks by the right solutions, it is important to know the system
situation in detail. For instance, attention has to be paid to the current
Ralf Christian: There is a great need to act in terms of the strong fluc- load situation and the necessary strategic planning in order to draw con-
tuations of feed-in from renewable energies which may considerably clusions about the future dimensions of the network. Therefore, there
affect network stability. In addition, energy consumers are increasingly cannot be one “Smart Grid” as such: instead, individual solutions will have
becoming producers. One of the prime tasks therefore is to keep energy to be found.
generation and consumption permanently in balance. This is achieved in
distribution networks by means of sophisticated measurement, control What can politicians do to support the development of Smart Grids?
and regulation technologies.
Ralf Christian: Clear and binding regulatory framework conditions must
)PX
DBO
UIF
EJGGFSFOU
SFRVJSFNFOUT
PG
EJTUSJCVUJPO
be established, ideally throughout Europe. This includes swift planning
networks be met? and authorisation procedures and reasonable investment incentives for
the provision of reserve capacity, storage possibilities and network devel-
Ralf Christian: As already mentioned before, one of the core tasks is to opment. Furthermore, standards and norms are of essential importance
keep the networks in balance. To this end, information and communica- to define the technical framework.
28 |

The development and transformation of Smart Grids in

distribution networks with Smart Grid application
Ye
technologies can be launched! s

Legal and regulatory frame

conditions must be urgently
adjusted! No
Are Smart Grids
supported by regulation?
> Must R & D be further
intensified?

Yes
> Can economies of scale be
utilised in future?
> Can politicians and regulatory
authorities provide support?

No
Are Smart Grid technologies
economically feasible?
R & D activities need to be
intensified!

Yes
No

Are Smart Grid technologies

Smart Grids already available today?
under development

From the system operators’ point of view, the time delay for investments in the distribution
network must be remedied just like in regulatory systems of other countries.
Regulation must offer the right incentives for building Smart Grids.
 | 29

7. Regulatory conditions

More than 800 electricity network operators and 700 gas network ope- nology, it remains to be seen what effect they will have in future efficien-
rators are subject to regulation by the Federal Network Agency and the cy comparisons. From the system operators’ point of view, the time delay
regulatory authorities of the German Laender. The incentive regulation for investments in the distribution network must be remedied with the
scheme aims at efficient operation of existing networks and provides same approach taken by the regulatory systems of other countries. At the
particular incentives for cost cutting. The Federal Government’s energy same time, it is essential to create incentives for transforming networks
concept defines an overall strategy for a fundamental transformation of into Smart Grids. The research project “Innovative regulation for Smart
the energy system with renewable energies serving as a mainstay. An Grids” funded by the Federal Ministry of Economics and Technology set
efficient network infrastructure is a basic prerequisite to this end. Both out to examine how incentive regulation should be developed against
at the transmission and the distribution system levels, considerable in- the background of an increasing share of decentralised generation and
vestments have to be made in the described development and upgrading the related necessary network extension. The analysis focused on the
of network infrastructures. The present regulatory framework needs to future regulation of electricity networks which are to be transformed
be updated for that purpose to promote the use of smart technologies. into Smart Grids in the medium term. One of the central conclusions was
that incentive regulation did not provide sufficient incentives for capital
For network operators to be able to make the corresponding network expenditure on smart network infrastructures.
investments, they need investment security for their projects through
reliable conditions and adequate, internationally comparable rates of Smart Grids will be required in future for adjusting energy demand to gen-
return. The crucial problem of lacking economic efficiency for capital ex- eration. They might contribute to reducing the need for conventional de-
penditure in distribution networks comes from the system-inherent de- velopment in the distribution system. But they may also have contrary ef-
lay of up to seven years between the capital expenditure and the con- fects, depending on framework conditions and implementation. Potential
sideration of costs by the regulatory authority. As a result, the rate of synergetic effects from pending capital expenditure on equipment re-
return to be obtained from capital expenditure in networks clearly falls placement may arise if there is a need for development at a certain place
below the equity interest rates determined by the regulatory authorities. where a renewal is required in any case. However, the construction of
A rate of interest in line with the capital market is no longer feasible. decentralised generation usually makes it necessary to replace equipment
Even network operators with 100 percent efficiency therefore have no well before it was due to be decommissioned. Smart Grids are based on
economic incentives to proceed with conventional or smart replace- innovation. It is essential for regulation to provide incentives for research
ment or extension investments. and development activities and demonstration projects by network op-
erators. Current regulatory provisions focus on short-term cost-cutting
The instruments provided hitherto by the incentive regulation ordinance and do not reward innovative solutions. The BDEW believes that a mixture
(Anreizregulierungsverordnung – AregV) cannot completely remedy the of instruments consisting of a lump-sum innovation allowance and capital
time delay, as capital budgets for distribution system operators are used expenditure budgets could be used as an incentive for general or basic
only in exceptional cases. The extension factor takes account of changes R&D projects and efforts. Capital expenditure budgets are suited for ap-
in the supply task by means of modified structural parameters, regardless plication-related pilot and demonstration projects. There is an urgent
of whether the network is developed in a conventional or smart manner. need to simplify this instrument and make it accessible to distribution
When it comes to investments in information and communication tech- system operators.
30 |

In future, network development and modernisation must go hand in hand with the development
of renewable energies. It is not sufficient to have a promising component available in technical
and economic terms. It must also be acknowledged by modern and flexible regulation.
 | 31

8. Conclusions

The integration of renewable energies is a great challenge for distribu- In future, network development and modernisation must go hand in
tion networks. Already today, certain network areas show 100 percent hand with the development of renewable energies. Regulatory authori-
loading by electricity generated from renewable energies. Medium and ties must make it possible for system operators to carry out the neces-
low-voltage distribution systems need to develop into multi-directionally sary investments in infrastructures, tap available potentials and create
operated dynamic networks based on Smart Grid technologies. But not all new potential by practice-oriented research and development activities.
technical components under discussion are equally close to the market It is not sufficient to have a promising component available in technical
and offer a high potential for maintaining system stability and ensuring ef- and economic terms. It must also be acknowledged by modern and
ficient system operation. This paper on recommended action has describ- flexible regulation. Adjustments in this respect are urgently required in
ed eight components which meet these criteria already today and which order to be able to meet the political targets of the energy transition.
may be used to launch the realisation of a Smart Grid “made in Germany”.
The potential provided by storage technologies must also be taken in-
In the opinion of BDEW and ZVEI, there are three concrete fields of action to account. They could make an additional contribution to flexibility
for distribution system operators. The prime objective must be to improve in future energy supply and make it possible to use energy generation
the information situation by systematically installing sensor systems in that currently has to be reduced for system stability reasons. From
the network. As a second step, an intelligent approach and automation 2030 at the latest, they will even be a prerequisite for bridging the
of distribution networks will be possible on the basis of controllable local deficit phases of renewables-based electricity generation.
network transformers, controllable converters capable of feeding reactive
power into the grid, corresponding standardised communication and data The challenges and potential solutions described in this brochure show
infrastructures and network control technology. A third field of action is the necessity for close interaction between the energy sector and the
system-oriented feed-in and withdrawal. Here great potential is offered manufacturing industry. BDEW and ZVEI will therefore continue to
in particular by controllable photovoltaic plants and wind turbines, heat closely follow the implementation of the energy transition and work
pumps as well as micro and mini CHP plants. together to produce recommendations and solutions.
1VCMJTIFE
CZ
BDEW - Bundesverband der ZVEI - Zentralverband Elektrotechnik- und
Energie- und Wasserwirtschaft e.V. Elektronikindustrie e.V.
Reinhardtstraße 32 Lyoner Straße 9
10117 Berlin 60528 Frankfurt am Main

phone +49 30 / 300 199-0 phone +49 69 / 63 02-0

fax +49 30 / 300 199-3900 fax +49 69 / 63 02-317
e-mail [email protected] e-mail [email protected]
www.bdew.de www.zvei.org

Editors Translation
Benjamin Scholz, BDEW Edith Kammer-Strnad, BDEW
Volker Rißland and Marco Sauer, ZVEI

Concept and realisation

zielgruppe kreativ
Gesellschaft für Marketing
und Kommunikation mbH
www.zielgruppe-kreativ.com

1IPUP
DSFEJUT
BDEW, ZVEI, ABB AG,
Bundesnetzagentur, EEX AG,
Fotolia, Hager Electronic,
iStockphoto, RWE, Saft Batterien,
Siemens AG, Vattenfall

June 2012