30th November 2012

Energy in Cities: EU practice Challenges and opportunities

António Vidigal CEO - EDP Inovação

Port uga l

2,635 Em ployees

2,831,651 Electricity C ustom ers

1,874 Installed C apacity (M W )*

8,043 N et G eneration (G W h)

100% G eneration from renew able sources**

24,544 Electricity D istribution (G W h)

Brazil

7,252 Em ployees

6,053,509 Electricity C ustom ers

271,576 G as C ustom ers

10,992 Installed C apacity (M W )*

24,364 N et G eneration (G W h)

51% G eneration from renew able sources**

46,508 Electricity D istribution (G W h)

7,138 G as D istribution (G W h)

It a ly

14 Em ployees

2,038 Em ployees

1,015,543 Electricity C ustom ers

787,860 G as C ustom ers

6,087 Installed C apacity (M W )*

15,331 N et G eneration (G W h)

37% G eneration from renew able sources**

9,517 Electricity D istribution (G W h)

48,447 G as D istribution (G W h)

Spain

51 Em ployees

475 Installed C apacity (M W )*

621 N et G eneration (G W h)

100% G eneration from renew able sources**

21 Em ployees34 Em ployees

363 Installed C apacity (M W )*

705 N et G eneration (G W h)

100% G eneration from renew able sources**

260 Em ployees

3,422 Installed C apacity (M W )*

9,330 N et G eneration (G W h)

100% G eneration from renew able sources**

USA/ Canada

France/ Belgium

Unit ed Kingdom

Poland/Romania

USA

Canada

UK

It a ly

PORTUGAL Brazil

Port uga l

Spainl

Angola

Pola nd

Roma nia

Fra nce

Belgium

From a local electricity incumbent to a global energy player

#3 wind energy player in the world with 7.500 MW of installed capacity in 11 countries

FY2011 EBITDA MW + ENEOP

Brazil

Under construction

-

84

Installed

Canada

Pipeline

1,614

Portugal Spain

UK

France

Belgium

Italy

Romania

Poland

2

-

58

-

-

20

80

-

939

-

2,201

306

57

-

190

285

3,850 390

618

1,448

43

830

1,365

579

375

7,483

21,028

-

-

US

215

3,422

10,193

100

EDP Innovation strategic direction revolves around four key priorities aligned with EDP Group’s strategic orientation

5

Offshore Wind New generators Generator dispatching

and O&M Waves Solar Microgeneration

Efficient Lighting (i.e. LED) Home Management Solutions

Smart Grids infrastructure (hardware, software, communication systems)

Stationary storage

Charging infrastructure and systems

Batteries V2G

6

Total displacement of the WindFloat is 2.750 ton. Total weight of the hull is 1.200 ton

The WindFloat Technology

Structure Dimensions

EDP’s investment arm

for the VC market

EDP Ventures’ Investment Strategy

Companies in the cleantech field that fit with EDP’s strategic priorities

VC funds with a cleantech focus, whose investment focus fits EDP’s strategic

priorities

Direct investments

Investments in VC funds

(fund-of-funds)

Accelerates the capture of strategic benefits

Facilitates integration of EDP in a global VC network

Increases deal flow (enlarged visibility over a broader set of innovative technologies)

Increases quality of deal flow

Contributes to reinforve our VC know-how

Potential support to our direct VC investments and other innovation projects

Reduces investment risk (portfolio diversification effect)

7

Pearl Station (1882)

27-ton machine that produced

100 kilowatts, enough to

power 1200 lights

http://www.ieeeghn.org/wiki/index.php/Pearl_Street_Station

The conduit installation with 100,000 feet of wiring proved to be one of the

most expensive parts of the whole project.

<… 1200 …>

Utilities are still using many of the original concepts invented by Edison

Cities have to change…

In 1894, the Times of London

estimated that by 1950 every

street in the city would be buried

nine feet deep in horse manure.

Trillions of instrumented things: cars, appliances, cameras, trains, pipelines... Even medicines and cattle.

We live in an instrumented World

• 1 b transistors/ per person consting 10-7 € • 4 b celulares • 30b sensores Rfid

The World has changed

Seen in Facebook. Origin: “trust me, I´m an Engineer

The Net is moving into the “Internet of Things”.

Smartcites have many dimensions, one of them being Energy.

Energy is an important component of the ”Internet of things”

New technology is needed: EU has ambitious climate goals that can only be achieved by increasing electrification of demand and decarbonising the power sector

14

5,6

1990 2008-2012 2020e 2050e

International agreement

Kyoto Protocol

-8% -20% -80 a -95%

Energy & Climate Package

G8 Summit in Italy

Emissions targets in EU GtCO2e

Emissions reduction as a function of the share of

electricity in final energy demand

% CO2 emissions

reduction

% electricity in final energy

demand

Emissions

factor

Zero

Today´s

Increase electrification

• Transport (EV)

• H&C

• Energy efficiency

Decarbonise power

• Renewables

• Nuclear

• Carbon capture and

storage

Hours

Need for:

• Flexibility

• Storage

• DSM

• Back-up

0.00%

0.01%

0.02%

0.03%

0.04%

0.05%

0.06%

0.07%

1 1001 2001 3001 4001 5001 6001 7001 8001

Solar

Hydro

Wind

Supply patterns %

Demand patterns GW

Increased penetration of intermittent renewables will call for flexibility and storage

15

Portugal already uses a large amount of renewables

16

Generation

(TWh)

Notas: Dados relativos a Portugal Continental; Geração hídrica real (não corrigida para IPH=1) Fontes: REN, DGEG

Percentage

of

renewables

in total

demand

In the last 10 years “new” renewables have been strongly adopted in Portugal

1. Inclui biomassa, resíduos sólidos urbanos, biogás e ondas/marés Notas: Dados relativos a Portugal Continental; Geração hídrica real (não corrigida para IPH=1) Fonte: DGEG

17

Power installed by renewable

technology MW

Energy generated by renewable

technology GWh

Hídrica

Eólica

CAGR

2%

44%

Solar PV

Outras1

56% 3%

10.336

4.754

Hídrica

Eólica

Solar PV

Outras1

24.089

13.314

Portugal ranks worldwide #10 in wind power installed and #2 in percentage of wind power in demand

Fonte: DGEG; GWEC, “Global Wind Statistics 2011; WWEA, “World Wind Energy Report 2010”

18

Ranking in wind installed capacity GW, 2011

Weight of wind energy in electricity

consumption %, 2010

19

Hydro production: dry year versus wet year; Wind production : daily volatility

Variability of energy production

Yearly hydro generation

Volatilidade de produção hidráulica: sazonal e anual; Ano húmido – seco corresponde a variações de +/- 53% em relação à média; Indispensável térmica de apoio (back up), o que implica um custo estrutural do sistema, face ao benefício de poupança em combustíveis.

average

+53%

-53%

REN (Grid): Daily wind production in 2011

Volatilidade de produção eólica: sazonal e anual, muito menor do que a hídrica; Incerteza da produção diária muito superior à da hídrica; Indispensável térmica ou hídrica de apoio (back up); implica também um custo estrutural do sistema e ainda pode fazer aumentar o custo de regulação diária.

20

Wind production: daily volatility

Variability of production

Wind production– a day with strong wind

Exemplo de um dia mais ventoso; O erro de previsão tem grande peso no conjunto da PRE – Produção em Regime Especial; Obriga a cuidados adicionais de regulação diária do sistema.

400MW

Only wind mills metered by the TSO are considered.

Old Sector Centralized System

New Sector Decentralized and smart System

Low environmental concern High environmental concern

Change in paradigm

22

A Energy Web is mandatory to face these new challenges

Web Energy Web

“peer-to-peer” and “plug-and-play”

Energy Web

Big Data Model: EDP’s Renewables Management System

SCADA Performance Management

Up to hundreds of windfarms

Up to multiple gigawatts of power

Historian

Data Base

Real-time data and controls

Substation

& Counters

Wind Turbine

& Met Towers WPP

Local systems at Wind Farms Interfaces with

external systems

Commands

Data Trading Systems

Generation Forecasting

Workforce Mgmt

Metering

Distribution

Corporate ERP system

Grid Operators

3 Dispatch Centers: Porto, Oviedo & Houston

More than 6000 wind turbines connected

Installed capacity of more than 10 GW

Historian database with 2 million data points

Project made with Logica Portugal

Storing and displaying data is one challenge, but a bigger one is to be able to extract knowlege out of it.

24 Project made with Feedzai

Smartgrids are key to meet both the existing and the new challenges faced by DSO’s…

25

Smart grids

Quality of

service

Operational

efficiency

Distributed

generation

Electric

vehicle

Energy

Efficiency

Existing Challenges New Challenges

26

Substation HV/MV

Station VHV/HV

EB

Production Transmission

HV network

Distribution Network

Secondary

Substation

MV/LV

A new control architecture must be developped…

MV network LV network

Retailer/ Consumer

WAN HAN LAN

Central Systems (commercial & technical) • Management • Operation • Data management • Integration with current

systems • ...

Distribution Transformer Controller (DTC) • Monitoring & Control • Metering • Concentrator • Microgeneration and load

control (future) • ...

Energy Box (EB) • Metering • Remote operation • Circuit breaker • Tariff flexibility • HAN interface • QoS information • ...

“Solutions can’t be bought off-the-shelf”

The good and the bad thing:

Plannnig under uncertainty in network systems Tiago Veiga (IST)

We will have to use new concepts, for instance, from robotics; Google cars …

RoboCup international

Distributed processing using Agents will be needed

Origin: Prashant Reddy (CMU)

… bringing those concepts into the grid and into the home.

… easier to start with EVs.

Power layer

Communications layer

Application layer

HAN

Future Apps & Services

Smart Charging & V2G

Distributed Generation

& Storage

Grid Optimization

AMI

A Smartgrid have to be built using independent layers

Phase 1

Phase 2

How to do it: Smartgrids must be built in phases

Phase 3

TAN

TAN

BAN

HAN

HANC/

EB

C/

EB

WAN

WAN(EDP)

HAN / WAN

HAN /BAN / WAN

HAN /LAN / WAN

HAN / BAN /LAN / WAN

HANC/

EB

HAN

HANC/

EB

C/

EB

CasaCentral

PTEdifício

HAN

HAN

HAN

WANs

(Publicas)

LANs

BAN

C/

EB

CT

DTC

C/

EB

C/

EB

SI

BAN

HAN

HANC/

EB

C/

EB

CT

SE

DTC

CT

Ce

ná

rio

1C

en

ário

2C

en

ário

3C

en

ário

4

Interopability should be insured by the separation from the physical and logical architectures

Smartgrid architecture

Internet

PLC, wireless, VPN HAN

ESCO Box

Other equip.

Other equip.

(...)

TSO

Data flow

Energy Box

ESCO, Retailer,s

Others

Data Gateway

Manag. Gateway

€

€

Utilities will be more tightly coupled with their customers

• Millions of IP addresses

• Huge data volumes

WAN

(GPRS/UMTS)

4

3

2

1

Project InovGrid uses those approaches

SCADA/DMS Information Systems

MV/LV transformers

4 3

LV Distribution network

Microgeneration

EB EB

2

Consumers

1

DTC

Energy Box

DTC: Distribution Transformer Controller

SCADA

SysGrid

Electric Vehicle

1

The project integrates the national Electric Vehicle (EV) charging network with several charging points in the Grid… “Chicken and egg problem”

• Évora is part of the pilot group of 25 Cities

• During the next 12 months EDP will deploy ~20 charging points in Évora

• Charging points locations: • Main highways

• Streets

• Public parking lots

• Service stations

• Airports

• Hotels

• Shopping centers

35

National EV integration timeline

Pilot

(25 Municipalities)

Subsequent phases

(National)

320 Charging points

2010 2011 2012 ... ... 2020

1.350 Charging points 160.000 EVs estimated for 2020

Inauguration of first CP, 29th of

June 2010 Network of first 25 municipalities

36

InovGrid platform provides a great “Living Lab”

INOVGRID Platform

New Products and Services Energy Efficiency Applications Electric Vehicle and

Microgeneration Emerging technologies

uMeter

Several Portuguese players, including EDP Serviços, are already developing new applications to manage domestic consumptions (PC, Smartphones, Ipad, TV,…)

Active management of the grid allows a higher introduction od distributed resources, and the management of EV recherge points

Telecommunications

LEDs

Smart Appliances

Storage

New Tariffs:

• Time of use tariff

• Consumption levels tariff

• Target kWh tariff

Pre-payment Alerts Demand Side Management

At EDP we got rid of closed innovation

…and have embraced “Open Innovation”.

New

Market

Present

Market

DevelopmentResearch

“Pipeline” of

new projects

Company

Boarder

New

Market

Present

Market

DevelopmentResearch

“Pipeline” of

new projects

Company

Boarder

We would love to here from you at our co-creation site

http://cocreation.pt/

A new Industry in on the making, you can contribute !

How we are seen How we see ourselves

So

urc

e:

Glo

bal S

mart

Energ

y, J

esse B

ers

t

pre

senta

tion

NEDO: The next opportunity ?

— World heritage city center

— A demonstrator for rehabilitation and modernization of historical city centers

— An opportunity for generating a real life test-bed, a demonstrator for technologies, products and services for global markets of sustainability

Enterprise 2.0

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“Utilities want to add client-value by offering ‘more for less’, ‘innovation’ & ‘inspiring engagement’ “

Generating Value

Creating value through innovation

António Vidigal

CEO - EDP Inovação