Sähkö ja älykäs yhteiskunta, Partanen Jarmo

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Älykkääseen yhteiskuntaan standardeilla 27.10.2016 Sähkö ja älykäs yhteiskunta Professori Jarmo Partanen Lappeenrannan teknillinen yliopisto

Transcript of Sähkö ja älykäs yhteiskunta, Partanen Jarmo

Page 1: Sähkö ja älykäs yhteiskunta, Partanen Jarmo

Älykkääseen yhteiskuntaan standardeilla

27.10.2016

Sähkö ja älykäs yhteiskunta

Professori Jarmo Partanen

Lappeenrannan teknillinen yliopisto

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Transformation into

solar economy

Sähkö ja älykäs yhteiskunta

Prof. Jarmo Partanen

[email protected]

+358 40 5066564

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What did we agree in Paris 2015?

Role of electrification?

Country pledges

for 2030

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Energy revolution – Driving Forces

Recarbonization Mass production based technology Holistic approach to intertwined electricity, heat, cooling, fuel, industrial, .. systems

Jarmo Partanen

Role of standardization?

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Use of World primary energy sources

Biomass

Coal

Oil

Natural gas

Other

Animal feed

Nuclear

20%

18

00

18

20

18

40

Hydro

18

60

18

80

19

00

19

20

19

40

19

60

19

80

20

00

40%

60%

80%

% f

rom

tota

lu

se

20

20

20

40

20

60

Key messages:

• The ‘waves’ of resources

• Different types of resources can be used

• Electrification?

• Magnitude of the challengeSources: http://www.eia.doe.gov/emeu/aer/eh/intro.html

http://nelson.wisc.edu/che/events/place-based-workshops/2010/project/energy-sources/bioenergy.php

Liu Zhenya, 2015. Global Energy Internet

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Jarmo Partanen

Natural gas

Coal

Oil

LNG

900

800

700

600

500

400

300

200

1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

100

€/M

Wh

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Jarmo Partanen

Natural gas

Coal

Oil

LNG

Wind Power

Li-ion battery

Power-to-gas

900

800

700

600

500

400

300

200

1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

100

€/M

Wh

Solar PV

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Jarmo Partanen

Growth of PV has

suprised all experts

In 2015;

• Wind power capacity 432 GW, addition 63 GW

• Solar power capacity 256 GW, addition 59 GW

• Nuclear power capacity 386 GW, addition 6 GW

• Coal power capacity 1687 GW, addition 84 GW

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29,99 $/MWh !!!!

800 MW

Future energy system features:● Security of Supply a limited resource ● Energy a non limited resource

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NOTE: Solar and wind resources and CAPEX may largely vary by individual projects, even on same

region, thus impacting LCOE. Hence, figures are indicative and do not aim to present our geographical

preferences for given technologies but rather illustrate progress of wind and solar globally, long-term.

PV LCOE assumptions based on EU PV Technology Platform report and EU PVSEC 2015 paper (lead

author Fortum solar technology manager Dr. Eero Vartiainen)

2016 2030

44 €/MWh 32 €/MWh

44 €/MWh 26 €/MWh

2016 2030

54 €/MWh 39 €/MWh

38 €/MWh 22 €/MWh

2016 2030

66 €/MWh 47 €/MWh

45 €/MWh 26 €/MWh

2016 2030

62 €/MWh 44 €/MWh

43 €/MWh 25 €/MWh

2016 2030

66 €/MWh 47 €/MWh

51 €/MWh 30 €/MWh

2016 2030

63 €/MWh 45 €/MWh

51 €/MWh 30 €/MWh

2016 2030

50 €/MWh 36 €/MWh

92 €/MWh 52 €/MWh

LCOE assumptions:

• 7% real WACC

• CAPEX, OPEX globally uniform; lifetime solar 30y, wind 25y

• Wind and solar: internal assumptions that solar utilisation to

increase by 7,5% and wind by 15% from 2016 to 2030

• Uniform 20% corporate tax assumed

2016 2030

70 €/MWh 50 €/MWh

80 €/MWh 47 €/MWh

2016 2030

47 €/MWh 34 €/MWh

80 €/MWh 47 €/MWh

Low seasonality

PV most competitive

Intermittent power

Clear Seasonality

Wind most competitive

Intermittent power

2016 2030

63 €/MWh 45 €/MWh

51 €/MWh 30 €/MWh

2016 2030

50 €/MWh 36 €/MWh

92 €/MWh 52 €/MWh

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29,99 $/MWh !!!!

Today, not in 2030

800 MW

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Electricity Market – Challenges

Jarmo Partanen

WEATHER DEPENDENT PRODUCTION WITH

LOW OPERATIONAL COSTS

Low market price

High volatility

Short operation times of

existing power plants,

different running ranking

Serious economic

problems

Power balance

challenges

Lack of inertia,

Sustainability

Price of electricity Operation of power system Security of supply?

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Electricity Market – Spot price in Nordic

Market, annual average 2000-2015

Jarmo Partanen

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Electricity Market – Spot price in Nordic

Market, monthly average 2000-2016

Jarmo Partanen

Kuiva kylmä talvi ?

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Flexibility Market in Finland, Fingrid

Jarmo Partanen

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Lappeenranta University of Technology

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Prices in flexilibity market, frequency control

Theoretical earning with 1 MW controlable power

Annual product Normal reserve Disturbance reserve

FCR-N FCR-D

€/MW,h €/MW,h

2011 9,97 1,48

2012 11,97 2,80

2013 14,36 3,36

2014 15,80 4,03

2015 16,21 4,13

2016 17,42 (152 000 €/MW,a) 4,50 (39 420 €/MW,a)

Hourly product

2015 195 000 €/MW,a 126 000 €/MW,a

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Electricity Market – Driving Forces

Jarmo Partanen

• Unlimited sustainable, cost efficient

energy source -> global welfare

• Unstable energy market and grids,

power balance

• ”Abnormal” low market prices

• How to keep lights on?

Storage is a new component in

electricity power system. Main goal is

to reduce the total capacity

(investments, costs) of energy system

(resource efficiency)

Mass production based technology

Weather dependent electricity

production

Low operation costs

Weather dependent electricity

distribution

Energy storages

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Price scenarios for batteries, learning curve; -20 % per doupling of global capacity

1 000 000 MWh = 500 milj. 20 kWh batteries a’ 4000 €

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Electricity Market – Driving Forces

Jarmo Partanen

• Unlimited sustainable, cost efficient

energy source

• Unstable energy market and grids,

power balance

• Abnormal low market prices

• How to keep lights on?

Storage is a new component in electricity

power system. Main goal is to reduce the

total capacity (investments, costs) of

energy system (resource efficiency). Peak

cut & power balance in short and long term.

’Unlimited’, low cost potential to control

demand (power) locally ”on line”

Efficient use of capacity of energy system

Power balance management

Improvement of cyber security together

with local production and storages

Mass production based technology

Weather dependent electricity

production

Low operation costs

Weather dependent electricity

distribution

Energy storages

Digitalization

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Electricity Market – Challenges

Jarmo Partanen

Market model challenge – ”Energy only” market design

Operating costs of renewable based production are extremely low (< 10 €/MWh)

What is the price of energy, when price of ’fuel’ is zero?

Hydro, wind, solar and nuclear based production will be always first in the

market

Competitiveness of power plants with ’typical’ operating costs ?

Competitiveness of production is based on investment costs/W + running hours

+ capability for flexible operation

Grid tariffs will be based on kWs ordered/measured instead of kWhs

-> From energy efficiency to capacity efficiency and flexibility capability

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Jarmo Partanen

HOW TO SOLVE THE PROBLEMS?

STORAGES DEMAND

RESPONSE

FLEXIBLE

PRODUCTION

INTELLIGENT

GRIDS

CH4

AKTIIVINEN ASIAKAS

Price? Business model? Investments? Profitability?

Market mechanism with incentives to invest on cost

efficient, flexible, secure, reliable and sustainable

energy system

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LVDC Distribution System Field Test Site 1000+ days in real life, LUT & Järvi-Suomen Energia (DSO)

Jarmo Partanen

Control of power

taken/supplied

from/to mv-

network, µgrid

operation

New solutions,

huge need of

standardization

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What did we agree in Paris 2015?

Country pledges

for 2030

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What did we agree in Paris 2015?

Sähkö ja lämpö 24,6 %

Liikenne 13,5 %

Teollisuus 10,4 %

Muu poltto 9,0 %

Maankäyttömuutokset 18,2 %

Maanviljely 13,5 %

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/ THE OPTIONS FOR ENERGY SOURCES

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NUCLEAR

CCS

RENEWABLES

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SOLAR, WIND, BIO, NUCLEAR

NEOCARBONISATION

BRIDGING

STORAGE

Current

energy

business

New business

opportunities

How to change emissions

to

useful raw material?

?

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Power-to-x

• Excess electricity to chemicals, fuels and

materials by using CO2

• Replacing crude oil, gas and gas

condensates

• Power to fuels - ”sähköpolttoaineet”

ElectrolysisCO2 reduction

process

Excess

electricity

H2O

O2

CO2

H2

H2O

CxHyOz

Q Q

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From electricity to gas; seasonal storage & clean fuel

System level view

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Power-to-x

BLENDINGMETHANOL CONVERTER Direct fuel use

MTBE CONVERSION Fuel additives

RWGS

CO2 + H2

FT SYNTHESIS REFINING

METHANOL TO OLEFINS Plastics

METHANOL TO GASOLINE Gasoline

Drop-in

METHANATION Methane

How to achieve industrial competitiveness? Mass production based technology + regulation + standards

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Power-to-X at LUT & VTT, 2017

LUT PV PLANT (EXISTING)

VTT: SYNTHESIS OF CH4

(SOLAR SNG) AND MeOH

VTT: CO2 CAPTURE FROM AIR

BUFFER STORAGES

LUT: H2 PRODUCTION THROUGH ELECTROLYSIS

- SOLAR SNG AND H2 REFILL - ELECTRICITY CHARGING FOR EV’S - MeOH FOR PLASTICS SYNTHESIS

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Jarmo Partanen

Electricity has an enormous history

but the future is …

unbelievable

Cost efficient, clean and unlimited energy source

Heat, cooling, working power

Electricity based fuels, food