Overview - AAEE

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Nov 21, 2013 (3 years and 7 months ago)

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Overview

The Smart Grids idea
currentl
y
is of global interest

as

s
everal initiatives, interest groups and, above all, technology platforms
have
emerged all around the world to

intensively
discuss this topic. Exemplarily, in the U.S. the Grid Wise technology platform
[1] was founded, many Europ
ean
countries

send representatives to the
ir

European Technology Platform Smart Grids [2] and
some national initiatives, like e.g. the National Technology Platform Smart Grids Austria [3], are trying to identify
why and
how the electricity systems
could

cha
nge
towards Smart Grid
.


Smart Grid is
treated

to be
one

solution for
upcoming challenges, like integration of an increased share of intermittent and
distributed generation, increasing
demand

or
the
better understanding

of

energy
-
utilization
,

which
can be
seen in the initiatives’
visions. The U.S. IntelliGrid intitiative, for instance, envisions Smart Grids as supporter of the 21
st

century economy with
“tremendous gains in reliability, capacity, and advanced customer services” [4].
The Ontario Smart Grid Fo
rum expects Smart
Grids to “
result in a cleaner, more efficient and more interactive electricity system” [5].
The National Technology Platform Smart
Grids Austria defines Smart Grid as power grids which

enable an energy
-
efficient and cost
-
effective system

operation

that is ready
for future challenges of the energy system
” [2]
.


The
more

initiatives

and visions

emerge
, the
less

a unique understanding of the topic
is evident
. Although
vivid

discussions
regarding

a possible
structure

of a Smart Grids electric
ity system
are conducted
, neither the grid operators
’ roles
and their
interactions

with other stakeholders
, nor
the potential
incentives

for grid operators
to invest

into a Smart Grid as well as
the

Smart Grid
components have been
investigated in detail

ye
t
.

Methods

Within this paper
,

in a first step
the

roles of the

stakeholders

(grid operators, electricity generators, regulatory authorities and
customers), the
detailed components

of a Smart Grids system
,
and the

interactions
of both, actors and components
,

are
identified
.


In a second step

the

Smart Grids
components’
fixed

and variable costs are collected or, if not available, realistic cost
ranges are

provided
.

Furthermore,

the economic trade
-
off between the
grid costs of the current central system
(
C

T&
D

central

, T&D



transmission &
distribution grid)

and

the grid costs

of a
possible future

decentral

oriented

Smart Grid
system

(C
SMART decentral
) with Smart Grid
components


costs
(C
SMART Component i
, i = 1, …, n)

is calculated. The trade
-
off equation

is
given by

decentral
SMART
central
D
T
C
C

&


where


)
...
(
2
1
1
n
Component
SMART
Component
SMART
Component
SMART
n
i
decentral
SMART
C
C
C
C







Finally, the potential grid operators’ benefits
f
rom investing into a Smart Grid
decentral grid structure

and possible incentives
are analysed.

















SMART
ELECTRICITY
GRID
S:

IDENTIFYING INCENTIV
ES FOR GRID OPERATOR
S

Natalie Glück
,
University of Vienna
,
+43
-
664
-
2105060
,
natalie.glueck@univie.ac.at


Results

The following result
s

are exp
ected
:



Analysis of the stakeholders’ roles and their interactions



Collection of d
eta
iled Smart Grids components and

their
interfaces



C
orresponding
fixed and variable
cost
s or cost ranges

of the Smart Grid components



Derivation of the

economic trade
-
off between
the central and the possible future decentral (Smart Grid) grid
costs



Evaluation

of the
grid operators’
potential
benefits

from and incentives for investments

into Smart Grids


Conclusions

The data and information derived within this paper
is

the basis for

the investigation of and the recommendations for a new
regulatory incentive regime, which will be developed in a next step.

References

[1]

www.gridwise.org
,

visited on 30.03.2009

[2]

www.smartgrids.eu
, visited on 30.03.2009

[3]

www.smartgrids.at
, visited on 30.03.2009

[4]

IntelliGrid Smart Power for the 21
st

Century; EPRI Electric Power Research Institute
, 2005
. Available at:
http://intelligrid.epri.com/publications.html
, visited on 30.03.2009

[5]

Enabling Tomorrow’s Electricity System, Report of the Ontario Smart Grid Forum. Available at:
http://www.ieso.ca/imoweb/pubs/smart_grid/Smart_Grid_Forum
-
Report.pdf
, visited on 30.03.2009