2011 10-05 smart grids as an opportunity for finland-jki

Smart grids as an opportunity for Finland and environment 5/10/2011

Dr. Johanna Kirkinen, Energy and Climate Change Lead Energy Programme, Sitra ECT Forum, The Finnish Society of Electronics Engineers

© Sitra

Energy Programme 20082012

Energy Efficient Built Environment • Energy efficiency into town planning • Energy efficient and sustainable new buildings • New operation models for building renovation

New Business from the Energy Revolution

• AW Energy Ltd • Neapo Ltd • Viola Systems Ltd • Norrhydro Ltd • Savo-Solar Ltd

Finns become Energy-concious

• Citizens join the energy bee • New operation models for energy guidance

Growing well-being and new business

through diminishing energy use of

individuals and communities

Energy use and emissions of

communities peak and decline –

a systemic change in energy

production and use in

buildings

5/10/2011

© Sitra

Enormous greenhouse gas reduction

potential in built environment

Buildings32 %

Construction6 %

Transportation19 %

Industry30 %

Others13 %

Greenhouse gas emissions 2007Total 78 Mt CO2-ekv

Built environment:

- Share of energy end-use 42 %

- Produce 38 % of carbon emissions in Finland

Buildings38 %

Construction4 %

Transportation17 %

Industry37 %

Others4 %

Energy end-use Total 307 TWh

5/10/2011

© Sitra

EU goals in environment and energy

• Greenhouse gas emission goals by 2020

- 20 % from 1990 level

- 30 % if other (industrial) countries take similar goals

- (Finland 80 % by 2050)

• In Emission Trading (ET) a common goal, in non ET MS-goals by 2050

- Industrial countries 60 - 80 %:n reduction until 2050

• Energy Efficiency: - 20 % in 2020 (compared to baseline in 2020)

• Renewable Energy Sources (RES)

- 20 % share of final energy cons. 2020 (at the moment 7 %)

- MS goals between 10 % … 48 % (Finland 38 %)

- Transport fuels RES share 10 % in 2020

• Structural change in energy system needed:

- Low carbon energy production

- Efficient use of energy industry, transport, and buildings

- Smart integration of production, use, and consumers

5/10/2011

About smart grids

05/10/2011

© Sitra

05/10/2011

© Sitra

From structures of industrialisation to focus on people and solutions

FROM BOTTOM

TO FRONT

© Sitra

Consumer perspective

Smart Grid Benefits (WEC and Accenture 2010) • Greater choice between energy providers, products and services • Greater transparency and control over energy consumption

- More transparent and frequent billing information • Opportunity to see environmental benefits on a household/business basis • Access to clean technologies, such as electric vehicles and micro-generation (heat

pumps and smart appliances) • Provision of a more reliable service with potential energy bill and carbon savings Consumer awareness and participation (JRC 2011)

- Consumers’ awareness and participation is crucial for the success of Smart Grid projects.

- Most projects highlight the need to involve consumers at the early stages of project development, to give consumers the freedom to choose their level of involvement and to ensure data privacy and protection.

- It is imperative to ensure that consumers have trust in and understanding of the whole Smart Grid process and receive clear tangible benefits.

05/10/2011

Local energy revolution??

05/10/2011

© Sitra

Local energy

• Challenge: how to increase the production of renewable energy or the use of energy saving technologies?

• “Local energy” refers to energy saved by a user or users collectively or locally produced renewable energy.

• Possibilities - Increase local economy - Increase households’ energy security - Creates communal spirit - Decreases emissions

• Challenges - No service provides (yet!!) - Costs - Not so many cases (yet!!) - Standardization and legal issues

05/10/2011

© Sitra

Electricity market

• Current situation

05/10/2011

Client -Electricity supply contract with local electricity supplier -Electricity contract with the electricity producing company

Electricity distribution company -Owns the dictribution network -Owns the meters -Charges distribution costs -Pricing is regulated by Energy Market Authority

Electricity seller -Sells electricity to the consumers -Acts in open market -Charges the costs of electricity production -No regulated pricing

© Sitra

Electricity market

• In the future???

05/10/2011

Client -Electricity supply contract with local electricity supplier -Electricity contract with the electricity producing company -Provides self-produced electricity to the grid

Electricity distribution company -Owns the dictribution network -Owns the meters -Charges distribution costs -Pricing is regulated by Energy Market Authority -Provides new services??

Electricity seller -Sells electricity to the consumers -Acts in open market -Charges the costs of electricity production -No regulated pricing -New services in the markets??

Service provider - Offers services related to intelligent grid

© Sitra

Energy price split between value chain players

05/10/2011

© Sitra

Local energy services, anyone?” survey

1. an online service that would allow residents to search for information, compare various solutions or create a list of suitable choices by entering basic background information.

2. a service that collects information from different sources, because the sector is developing rapidly and has many service providers -> would make it easier to find impartial information and make comparisons.

3. turnkey services that would include design, permits and installation as well as system servicing and maintenance.

05/10/2011

Other project examples

05/10/2011

© Sitra

05/10/2011

Finnish smart grid offering map available here >>

© Sitra

Distributed methods of energy production

Piirrokset: Leena Ahveninen

© Sitra

SOLAR DECATHLON EUROPE 2010 SDE 2010 TEAM FINLAND

• A competition for universities to design and build a prototype solar powered energy self-sufficient house in Spain in May-June 2010.

• Luukku house by Aalto University - Wooden house

- Zero energy

- Minimal living unit

- Low carbon footprint

- Challenges of Northern climate

- Promote the best possible Finnish products

• Powered by Sitra

www.sdfinland.com

5/10/2011

Low2No

Towards Sustainable Urban Living

© Sitra

Low carbon lifestyles

28.5.2011

Key elements:

• Increasing community engagement and community awareness

• Low carbon food

• Low carbon travel

• Mixed-use environment

• Smart systems and sensoring

© Sitra

05/10/2011

© Sitra

How to speed up the development of smart grids?

• User-centric approach: increased interest in electricity market opportunities, value added services, flexible demand for energy, lower prices, micro generation opportunities

- Innovation enabler

- The users deside in the end how ”intelligent” the grid is, not b2b

- ”Listen to customers instead of telling them”

• Goverment programme

- Development of smart grids

- Pricing of electricity

• Signals from the news…

- Germany: Smart grid lab opened at university in Magdeburg

- Over EUR 5bn invested in around 219 smart grid projects. By 2020, investment could reach EUR 56bn.

- Sweden: Nine of ten Swedes positive to selling surplus electricity (a survey by Fortum )

05/10/2011

© Sitra

Customer participation, services, pilots…

05/10/2011

Source: Naps Systems

© Sitra

Thank you! More information: Dr. Johanna Kirkinen Lead, Energy and Climate Change Energy Programme, Sitra GSM +35840 186 7107 Email [email protected]