FED Fo s s il Fr ee En er gy d is t r ic t Kraftforum M a y 20 17 Jonas Wilhelmsson Global Engagement Director
Disr upt ion al l ar ound World s largest taxi company owns no taxis (UBER) Largest accommodation provider owns no real estate (AIRBNB) Largest phone companies own no telco infrastructure (SKYPE, WECHAT) World s most valuable retailer has no inventory (ALIBABA) Most popular media owner creates no content (FACEBOOK) Fastest growing banks have no actual money (SOCIETYONE) World s largest movie house owns no cinemas (NETFLIX) Largest software vendors don t write the apps (APPLE & GOOGLE) Largest digital retailer removes physical queues (AMAZON GO) FED Microgrid Ericsson Internal May 2017 Page 2
Disr u pt in g Ut il it ies FED Microgrid Ericsson Internal May 2017 Page 3
Th is is Fed FED stores and re-uses excess energy. Lowers demand for external energy import and avoids peaks. FED tests local energy efficiency solutions FED is a sustainable, local, marketplace for electricity, heating and cooling.
Ba c k g r o u n d FED is financed by the Urban Innovative Actions program (UIA) UIA is funded by the European Regional Development Fund UIA main objective is to provide urban authorities throughout Europe with space and resources to experiment new innovative answers to the interconnected and complex local challenges UIA shall support pilot projects to identify and test new solutions which address issues related to sustainable urban development 378 projects applied, 18 accepted FED Microgrid Ericsson Internal May 2017 Page 5
FED In n u m ber s Partners: 9 Runtime: ~3 years Pre-study: 6 months (ongoing) Total budget: ~ 6 million Buildings: 40 End-users: 15 000 Communication: Reach 150 European cities, 50 FED local energy districts, 70+ press articles, hackathons, lobbying, events, etc. FED Microgrid Ericsson Internal May 2017 Page 6
Compl emen t ar y FED Partners FED Microgrid Ericsson Internal May 2017 Page 7
Wh a t s Er icsson s Ro l e? Industry specific solutions ERICSSON IOT ACCELERATOR MARKETPLACE & ECOSYSTEM ENABLEMENT ORCHESTRATION, INTEGRATION & AUTOMATION DEVICE & DATA MANAGEMENT CONNECTIVITY MANAGEMENT CLOUD On Premise Private Public NETWORK CONNECTIVITY Cellular IoT Non Cellular IoT 5G-Core Ready DEVICES SDK integration FED Microgrid Ericsson Internal May 2017 Page 8
FED GOALs Develop and demonstrate a microgrid, in full scale, with 99.9% availability Decrease fossil energy peaks by 80% Decrease energy imported to the microgrid by 30% Develop and demonstrate a local energy market with at least 10 000 transactions FED Microgrid Ericsson Internal May 2017 Page 11
Sol ut ion
Th r ee en er gy car r ier s El ect r icit y Dist r ict h eat in g Dist r ict cool in g FED Microgrid Ericsson Internal May 2017 Page 13
FED SW SW SW SW SW SW FED Microgrid Ericsson Internal May 2017 Page 14
Th e Mar ket
Cen t r al ized cont r ol VS Open mar ket Different options exists on the overall function of the marketplace Extreme option 1: Centralized control where all assets are managed by a central control function. Only sensors and actuators at the participant locations. Control room has all power and intelligence. Extreme option 2: Peer-to-peer. Open market, only listing supply and demand offers and bids. No input information on technical conditions or central coordination. Only transactions, all intelligence in the market participants FED Microgrid Ericsson Internal May 2017 Page 16
Open Mar ket Disr u pt ion http://www.utilitydive.com/news/siemens-lo3-energy-teams-up-for-blockchain-powered-microgrid-in-brooklyn/430884/ FED Microgrid Ericsson Internal May 2017 Page 17
Fed is somew h er e in t h e middl e Extreme option 1 Central control of all resources Only sensors and actuator at participants + Facilitates optimal use of resources - Technically complex, less easy to incorporate new investments - Limited acceptance - Replicability? FED market Market oriented Matching supply and demand, and (some) intelligence, e.g. DR. Participants submit supply, demand & flexibility bids. Decisions on what to provide the market made by the market participants. Extreme option 2 Peer-to-peer transactions Marketplace constitutes of a list of supply and demand bids. Decisions made by the market participants on what bids to accept. Dumb market place + Acceptence + Replicability - No coordination => lower system efficiency FED Microgrid Ericsson Internal May 2017 Page 18
Def in it ion s Term Role Market participant Description A generic type of market role that a Market participant can play. E.g. producer, consumer, storage operator. An entity with physical assets being active on the market. E.g. a building, storage, PV panels, etc. or combinations thereof. A Market participant can include several Roles, e.g. producer and flexibility provider Owner Energy carrier The software entity representing and acting on the behalf of a Market participant. Owner of physical assets, e.g. building owner. The Owner can own several Market participants. Refers to a system for exchange of energy between Market participants. Energy carriers are mainly separated from each other, but have interactions in certain points. E.g. electricity, high temp. DH, low temp. DH, cooling. FED Microgrid Ericsson Internal May 2017 Page 19
Owner, Mar ket par t icipant, Agen t an d Rol es Measurements Control signal Role Role Asks/Bids Acceptance on bids Owner of Market participants Real-estate owners Energy companies Storage owners etc. Market participant with physical assets Building PV Battery etc. Software representation of a Market participant. Can incorporate one or several roles (e.g. consumer and storage operator). Market interface List of parameters supplied to FED market place FED Market Place FED Microgrid Ericsson Internal May 2017 Page 20
21 Ag en t s & FED Mar ket Pl ace s are smart Decide on what to offer to the market through the defined market interface (parameters) Can make their decisions based on less complex or more complex analyses depending on their preferences. Market Place is quite stupid Clears offers from the agents according to a defined set of market rules and objectives (through optimization) Market has no information on the physical assets behind the agents Adapted to meet FED objectives Transparent to enhance acceptance and replicability FED Microgrid Ericsson Internal May 2017 Page 21 FED Market Place
22 TWO MAIN market functions Two (different) functions of the FED marketplace FED Energy Market Market for exchanges of energy and overall matching between supply and demand, inclucing connections to the wholesale market Auction based Encompass most (all?) buildings and other equipment in the local energy system. Typical time resolution: 1 hour (preferably shorter...) FED System Service Market: Market for supplements of system services to the outside system and market Includes a few resources having possibilities and metering facilitating fast regulation Called in merit order Typical time resolution : Minutes (or near real-time...) s submit bids to these markets Ask : Supply energy and/or service, ask for a price to sell for Bid : Demand energy and/or service, bid a price willing to pay FED Microgrid Ericsson Internal May 2017 Page 22
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