Future game changers in Energy markets - VPP …...A building as a part of the smart energy system...

Future game changers in Energy markets

- VPP Project, connecting Buildings to Energy

Markets, development with Ministry Spearhead Aid

- Blockhain opportunities Jussi Mäntynen, Siemens Osakeyhtiö

siemens.fiPublic © Siemens Osakeyhtiö 2018

Public © Siemens Osakeyhtiö 2018

15th of May 2018 Siemens Osakeyhtiö

From centralized, unidirectional grid …



…to distributed

Gas

supplier

Offshore

wind park

Onshore

wind park

Fossil

power

plant

Gas station

Biomass

Gas storage

Pumped hydro

Gas transport

Gas distribution

Thermal

storageDistrict

heating coolingOnshore

wind park

Large scale

PV plant

Substation Substation Substation

Building / data center

Nanogrid

DC grid

Controllable

transformer

Electrical

vehicle

infrastructure

Diesel

generator

Rivate wind /

solar

Smart building and

thermal storage

Storage solutions

Microgrid

Microgrid controller

Combined (cooling)

heat and power

Network control center

Heater, chiller,

heat station



Energy

efficiency

Renewables and conventional

e-Mobility

Microgrid

Local resilience

Customer

engagement

Distributed,

closed-loop

control

Distribution platforms

Analytics

Cyber security

New business models

Two major trends are enforcing each other and

are driving the transformation of the energy world

Distributed

energy

systems

Digitalization

StorageTransactive

energy

Small power plantPhotovoltaics

Onshore wind

District heatingand cooling

EngineData hubs

Adaptive protection

Dynamic Line Rating

Digital substation

$ €₹



Digitalization enables energy transition

Digitalization

enables

transition

• Utilities focus on own assets

and operation

• System view based on business model

"generate, distribute, and sell energy"

• Value in copper

• Customized, utility-specific “grid-size”

solutions

• Manual operation

• Central generation, generation follows

load

• Focus on customer assets, needs and

requirements

• Local view, new customer-centric

business models

• Value in SW and fast innovation

• Off-the-shelf, scalable solutions for

many distributed sites

• Automated, highly efficient operation

• Distributed and renewable generation,

flexible energy systems e.g. demand

response

Traditional energy value chain New distributed energy world

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Digitalization

enables

transition

Virtual Power Plant InitiativeJussi Mäntynen, Siemens Osakeyhtiö




Our world is undergoing big changes influencing on buildings

New role and

earning models

for buildings as

important players

in the new

energy system.

New and flexible energy system

Replace fossil and nuclear energy

with renewables.

Balance supply and demand

• Through controlled generation

• Through flexible

consumptions

Reduce cost

Traditional property market

• Real estate is the 2nd largest

expense on the income statement

• The real estate portfolio is the 3rd

most expensive asset.

• First step taken to increase

profitability through improved

efficiency.



Connecting buildings to energy markets

and enabling buildings to make smart

decissions related to energy usage.

→Offering new revenue model for building owners

→Same time generating cost efficiency and preparing

building technology for the future needs



A building as a part of the smart energy system

Solar Panels 600 kW Battery storage 2 MW

Demand response

market

El Spot

Electricity market

Mic

rog

rid

fu

nctio

ns

Smart

building

automation

Microgrid functionality

A Building, e.g. a shopping mall,

campus or business park

Electric systems for the

demand response use and

micro grid functions

Siemens microgrid and

demand response Cloud



Opportunities

Total

Benefits

€240,000/y

Benefit simulation of Premium business Park (30.000m2)

2,000 MWh consumption and 1,5 MW controllable load

Demand response

Energy savings

SPOT optimization

Local Generation High subscriptions

€150,000/y €7,200/y

€20,000/y €40,000/y

€22,000/y

On top reducing the maintenance backlog and renewing old technology customers can achieve major cost reductions in energy.



We recognize the main obstacle

Someone needs to take the role to drive the topic

and offer end to end solutions for buildings.



Funding

• Microgrid projects

• Smart energy

management

• Battery storages

Back-up power

• Expensive for

a society to maintain

• Not driving

sustainability

• Unprofitable

replacements

€8.4 million investment aid

• The Ministry funding enabling the implementation

of the required technology for the buildings.

• The biggest investment aid granted to an energy

initiative reflects the Ministry’a trust of the

initiative.

• €7,2 million is dedicated to building owners to

implement required technologies.

Enabler for profitable technology investments.

The growing amount of

renewable energy is

increasing the need for a

sustainable balancing

solution - through

flexible consumption.



Standard connectivity for buildings

Controllable load management

Adoptation of the building to the

demand response market.

Requirements for building

technology

Enabling demand response

• Flexible load (min. 0,1MW)

• Smart energy system enabled by IoT platform

• Connectivity

• Knowledge

• Understanding of the building, its functions

and potential

• Technology possibilities

• Recoding of the building operation system

IoT platform

Smart energy system



Virtual Power Plant initiative to help buildings

to benefit financially from the new energy system

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A joint initiative to benefit from energy transition

• Combine small individual loads to a relevant size of the load and sell it to the reserve market.

• New earning model based on the compensation provided by the grid company

• Based on cooperation and co-development with buildings for the best solution.

• Shape the market and the terms to favorable for owners.

• Profitable investments for new technology funded by the Ministry.

• Energy savings and improved efficiency provide further earnings.

• Siemens participation ensures knowledge of the new market and expertise in technology.

A new company to be established by August 15, 2018.



• Energy efficiency

• Optimization of peak

loads

• Own electricity

production

• Totally new income

from reserve markets

• 2nd largest shopping

mall in Finland

• 100.000 m2 of

shopping space

• 23 Million visitors per

year

• 170 Shops

• LEED Platinium

Expertise from Siemens

• Understanding of new earning models

• Solutions to benefit from compensation from

reserve markets

• Solutions for automatic purchase and selling of

electricity as well as controlling of consumption.

• Global channels and expertise

• Diversified know-how: building automation,

microgrids, connectivity, platforms, digital

solutions, energy storages, smart metering, local

production, financing

We know how to do it:

Sello Shopping Mall under implementation

Sello Shopping Mall

The project was a

door opener to the

new market



Sello case customer benefits in nutshell

Total yearly benefits >600.000 €

Cashflow from energy market places

Energy efficiency

Reduction of maintenance costs

Reducing maintenance back lof investments

Local energy production 470 MWh / a

Carbon emission reduction 281 tkg/co2 / a

Property Value increasement

Sustainable image

Cost efficiency effect to rent price levels

Preparing for e-car needs

Opex neutral solution

http://www.google.fi/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiY6LPR86rRAhWFkywKHbIrAdkQjRwIBw&url=http://www.iltalehti.fi/uutiset/201611252200032401_uu.shtml&bvm=bv.142059868,d.bGg&psig=AFQjCNGKGc_VqAj0J-vQQE9aHVm4qsGwKg&ust=1483702164235949

http://www.google.fi/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjxsIrw96rRAhVCiCwKHZXCBT0QjRwIBw&url=http://www.electrical-harrogate.co.uk/low-energy-and-led-lighting/&bvm=bv.142059868,d.bGg&psig=AFQjCNE-5u70LLPHPM02xR1thaNBsjtxkA&ust=1483703278505288

http://www.google.fi/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjdmY2Q-KrRAhVFCiwKHaXuAKsQjRwIBw&url=http://w3.siemens.com/powerdistribution/global/en/mv/power-supply-solutions/siestorage/pages/siestorage.aspx&bvm=bv.142059868,d.bGg&psig=AFQjCNF4zsSGBZBVHC_OMjf312XL3kIWog&ust=1483703418607325

https://www.google.fi/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiewo7N-KrRAhXHiiwKHfm0CZIQjRwIBw&url=https://en.wikipedia.org/wiki/Solar_panel&bvm=bv.142059868,d.bGg&psig=AFQjCNFy2FV47Rf9HMoB8NKHpUwvb5md8g&ust=1483703553746603



We invite you to participate to maximize your building investment

profit

The virtual power plant company opens the

energy markets for buildings and

generates energy efficiency.

The momentum is now.



New company ”VPP Ltd” to combine loads

Owned by building owners, investors and Siemens

“VPP Ltd.”

15.8.2018

Business principle

Connect loads, manage energy

portfolio and perform the

transactions for maximum

savings.

Required load is 32 MW:

• 22 MW, microgrids

• 10 MW, energy storages

Live the modern platform

economy by creating new

business through digital services.

Motivation to join

Influence on company structure

and business models.

Benefit from the total load.

Be part of the investment aid.

Improved image: forerunner in

energy transformation and and

reduced environmental impact.

Attractiveness: better conditions

in buildings

Binding commitments by August 15, 2018.



We offer

A unique opportunity

to become an owner of the new

virtual power plant company

And benefit from the energy

transition



We offer

Or

Just to connect the buildings to smart

platform to gain the benefits for the

building portfolio.



Next steps

15.6.2018The letter of

intents ready for

Ministry.

Siemens

• Provide the plan of connecting

loads based on the consultation

and an offer for service

agreement.

• Ministry funding is available for

the consultation phase.

Building owner

• Commitment now to connect the

building property totally or partially

to the virtual power plant

• Minimum requirement: 0,1 MW /

building owner

• Define the KPIs to Siemens

ensuring profitability for the

building owner and providing the

right to quit if not reached.

• Dedicate a contact person

supported by the technical team

Week 16-23

A meeting between

technical teams to

prepare details.



Virtual power plant initiative

Benefits for the society

Investment aid, €8,4 MThe Finnish Government selected

the virtual power plant initiative

among 70 projects.

The biggest investment aid of all

projects reflects the strong support.

InnovationVPP drives open data for future

development and businesses.

Speed up the implementation of

the government strategy.

DecarbonizationBuildings cause 40% of CO2

emissions in Finland.

VPP reduces overall Finnish

carbon footprint by 0,5 %

TechnologyThe newest technologies are the

quickest way to reduce

environmental impact.

The investment aid helps to

implement required technologies.

Energy transitionVPP creates a combined and open

market place for energy sector.

VPP speeds up the usage of

renewable energy sources with

sustainable manner.

JobsNew innovation and business

model can create new jobs to

Finland and to other countries.

Blockhain opportunities Jussi Mäntynen, Siemens Osakeyhtiö


Brooklyn Microgrid Project

New business opportunities in the fast-growing

consumer & prosumer centric internet of energy

world based on blockchain!

Siemens Energy ManagementPublic © Siemens Osakeyhtiö 2018



Digitalization enables energy transition

Digitalization

enables

transition

• Utilities focus on own assets

and operation

• System view based on business model

"generate, distribute, and sell energy"

• Value in copper

• Customized, utility-specific “grid-size”

solutions

• Manual operation

• Central generation, generation follows

load

• Focus on customer assets, needs and

requirements

• Local view, new customer-centric

business models

• Value in SW and fast innovation

• Off-the-shelf, scalable solutions for

many distributed sites

• Automated, highly efficient operation

• Distributed and renewable generation,

flexible energy systems e.g. demand

response

Traditional energy value chain New distributed energy world

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Digitalization

enables

transition



Expected advantages of using

Blockchain & Smart Contracts

▪ Cost efficient trading of energy and flexibility even for small

prosumers and consumers

▪ Reduced complexity and cost of clearing / settlement / billing

▪ Increased accuracy of forecasts based on transparent access of data

▪ Simplified location value based pricing for congestion prevention

▪ Enhanced cyber security through distributed architecture

▪ Simplified proof of origin (e. g. for green power certificates) and

enhanced traceability

Fully

autonomous

operation of

future energy

systems



Brooklyn Microgrid Project based on Partnership Siemens – LO3 Energy

Innovative Microgrid solution supporting New York’s

Reforming the Energy Vision (REV) program



Brooklyn Microgrid Project | Stage 1:

Transacting local energy with community in a virtual microgrid

Virtual Microgrid operated by

Brooklyn Microgrid (BMG) as Community

BC-enabled Consumer BC-enabled ProducerBC-enabled Prosumer

Node Node Node

Regional non-renewable Grid Regional non-renewable

Consumers and prosumers will get the

choice to decide which sources to by

energy from (e. g. local PV, regional

Wind, natural gas, coal, etc.)

Consumers will get the opportunity to

earn rewards for negawatts they do not

consume during certain high peak

times

Members will be able to track their

energy footprint and compare against

others

Operator will be able to track energy

flow within virtual microgrid &

interchange with external sources

Siemens

Microgrid

Management

System

Monitoring,

Visualization,

Data analytics



LO3 Energy App

Enabling consumer choice through technology

Screen shots courtesy of: LO3 Energy



Vision: Fully integrated ecosystem for

transactive energy trading and grid control!

▪ We connected the traditional energy world with the future energy world!

▪ Utility & C&I type control systems meets prosumer centric transactive energy systems

enabling versatile, value-based transactions and new business modelsConventional

central power

plants

Siemens Microgrid

Management System /

EnergyIP on MindSphere

Industrial

Residential

Trading

e-Mobility

CommercialGrid control

system

Energy

exchange

Decentralized

generation

Solar

▪ Enabling

▪ Maximum grid efficiency by

optimizing power flows through

location value based pricing

▪ Minimum capacity requirement

through demand response

▪ Increased Resiliency

▪ Consumers to make more

informed energy choices

▪ Sustainable and affordable

energy supply

Storage

Prosumers stake Exergy-compliant meters onto the platform via XRG

• Make their generation available to the local market

• Price signals delivered to influence self-consumption and asset performance

Consumers stake their mobile apps to participate in the local market via XRG

• Set preferences for energy mix and prices

• Purchase local clean energy

USE CASE

Local community microgrids

USE CASE

Urban e-mobility platforms

- Exergy-compliant charging stations are staked onto the platform

- Price signals delivered to influence charging behaviors

- Curtailable loads available for grid services

• Data valuable to different entities for:

- Using EVs to participate in vehicle-to-grid applications

- Understanding e-mobility customer trends

- Better planning of EV support infrastructure and retail outlets

USE CASE

DSO-operated demand response and grid services platform

Consumers and prosumers stake their flexible appliances and self-generation equipment onto the Exergy platform via XRG

… and permission verified meter and device performance data on the network

Commercial and industrial (C&I) customers stake their meters and assets onto the platform via XRG

… and customize their procurement and DR participation preferences

… and provision its load and assets as available and AI-controllable for grid services and performance

Local DSO uses the data aggregated to optimize demand-supply schedule

… and implement machine-to-machine price signals for grid balancing

PROJECT PIPELINE

By 2040, 1 billion households and 11 billion smart appliances could actively participate in interconnected electricity systems.

Digitalization and Energy, International Energy Agency, 2017

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What you can do

Build a microgrid in your community

Partner with us

Design a module on our platform

Invest in the new energy economy



Contact

Jussi Mäntynen

Energy Management

CEO Digital Grid Nordic & Baltic

Division Director Finland and Baltic

Digitalization Lead Nordic & Baltic

Member of Siemens Executive Management team Finland & Baltics

Phone: +358 50 469 7707

E-mail: [email protected]

siemens.fi

mailto:[email protected]

Future game changers in Energy markets - VPP …...A building as a part of the smart energy system...

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Transcript of Future game changers in Energy markets - VPP …...A building as a part of the smart energy system...