Smart grids as an opportunity for Finland and Environment

1. Smart grids as an opportunity for
Finland and environment
Dr. Johanna Kirkinen, Energy and Climate Change Lead
Energy Programme, Sitra
5/10/2011
ECT Forum, The Finnish Society of Electronics Engineers

2. Energy use and
emissions of
communities peak
Energy Programme 20082012 and decline –
a systemic change
in energy
production and use
in
Energy Efficient Built Environment buildings
• Energy efficiency into town planning
• Energy efficient and sustainable new buildings
• New operation models for building renovation
Growing
well-being and
Finns become New Business from
new business
Energy-concious the Energy Revolution
through diminishing
• Citizens join the energy bee • AW Energy Ltd
energy use of
• New operation models • Neapo Ltd
individuals and communities
for energy guidance • Viola Systems Ltd
• Norrhydro Ltd
• Savo-Solar Ltd
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3. Enormous greenhouse gas reduction
potential in built environment
Energy end-use Greenhouse gas emissions 2007
Total 307 TWh Total 78 Mt CO2-ekv
Others Others
4% 13 %
Buildings
32 %
Buildings
38 %
Industry
37 %
Industry
30 %
Construction
6%
Construction Transportation
Transportation 4% 19 %
17 %
Built environment:
- Share of energy end-use 42 %
- Produce 38 % of carbon emissions in Finland
5/10/2011
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4. 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
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5. About smart grids
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6. 05/10/2011
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7. From structures of industrialisation to focus on people
and solutions
TO FRONT
FROM BOTTOM
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8. 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
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9. Local energy revolution??
05/10/2011

10. 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
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11. Electricity market Client
-Electricity supply contract with
local electricity supplier
• Current situation -Electricity contract with the
electricity producing company
Electricity seller
Electricity distribution company -Sells electricity to the
-Owns the dictribution network consumers
-Owns the meters -Acts in open market
-Charges distribution costs -Charges the costs of
-Pricing is regulated by Energy
electricity production
Market Authority
-No regulated pricing
05/10/2011
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12. Client
Electricity market -Electricity supply contract with
local electricity supplier
-Electricity contract with the
• In the future??? electricity producing company
-Provides self-produced
Service provider electricity to the grid
- Offers services related to
Electricity seller
intelligent grid -Sells electricity to the
consumers
-Acts in open market
Electricity distribution company
-Owns the dictribution network -Charges the costs of
-Owns the meters electricity production
-Charges distribution costs -No regulated pricing
-Pricing is regulated by Energy -New services in the
Market Authority markets??
-Provides new services??
05/10/2011
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13. Energy price split between value chain players
05/10/2011
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14. 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.
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15. Other project examples
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16. Finnish smart grid offering map available here >>
05/10/2011
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17. Distributed methods of energy
production
Piirrokset: Leena Ahveninen
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18. 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
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19. Low2No
Towards Sustainable Urban Living

20. Low carbon lifestyles
Key elements:
• Increasing community engagement
and community awareness
• Low carbon food
• Low carbon travel
• Mixed-use environment
• Smart systems and sensoring
28.5.2011
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21. 05/10/2011
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22. 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
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23. Customer participation, services, pilots…
Source: Naps Systems
05/10/2011
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24. More information:
Thank you! Dr. Johanna Kirkinen
Lead, Energy and Climate Change
Energy Programme, Sitra
GSM +35840 186 7107
Email johanna.kirkinen@sitra.fi
© Sitra