Jeju Island Smart Grid Project
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The Jeju Island Smart Grid Project, launched by the International Smart Grid Action Network (ISGAN), aims to accelerate the development and deployment of smarter electricity grids globally. The project encompasses technology and business model verifications across various domains, including smart power grids, transportation, and renewables, with plans for broader smart city implementations following the Jeju pilot. The initiative gathers support from multiple nations, focusing on enhancing global cooperation and fostering innovative energy solutions amid increasing energy demand.
Jeju Island Smart Grid Project
- 2. 2 ISGAN in Context A mechanism for bringing high‐level government attention and action to accelerate the development and deployment of smarter electricity grids around the world. A mechanism for bringing high‐level government attention and action to accelerate the development and deployment of smarter electricity grids around the world. ▷ Sponsors activities that build a global understanding of smart grids, address gaps in knowledge and tools, and accelerate Smart Grid deployment ▷ Builds on the momentum of and knowledge created by the substantial global investments being made in smart grids ▷ Is organized as a task‐shared IEA Implementing Agreement (2011) ▷ Was launched as an initiative of the Clean Energy Ministerial (2010) ▷ Fulfills a key recommendation in the Smart Grids Technology Action Plan(released by Major Economies Forum Global Partnership, 2009)
- 3. 3 ISGAN in Context ▷ ISGAN is formally organized as the IEA Implementing Agreement for a Co‐operative Programme on Smart Grids (ISGAN) ▷ ISGAN is managed by its Executive Committee (ExCo) Consists of representatives from all Participants Meets semi‐annually. Next meeting: Shanghai, China, March 31, 2014 ▷ ISGAN is supported by a Secretariat at the Korea Smart Grid Institute Email address: isgan@smartgrid.or.kr, ISGAN Website: http://iea‐isgan.org ▷ The ISGAN community includes representatives of governments, transmission and distribution system operators, national laboratories and research institutions, power generators, and more.
- 4. 4 ISGAN Participants ‐ 25 Members Swedish Energy Agency Government of Australia Government of Canada U.S. Department of Energy Government of Mexico Tekes (Finnish Funding Agency for Technology and Innovation) Norwegian Ministry of Petroleum and Energy Russian Energy Agency New Energy and Industrial Technology Development Organization (NEDO)Ministry of Science and Technology Department of High and New Technology Development and Industrialization Government of India Sustainable Energy Authority of Ireland Government of United Kingdom Government of Belgium Forschungszentrum Jülich GmbH Government of the Netherlands, Ministry of Economic Affairs, Agriculture and Innovation Union Fenosa Distribucion Government of Austria Ricerca sul Sistema Energetico (RSE S.p.A.) Government of France Swiss Federal Office of Energy Contracting Parties (25) IInvited to Join the IA Brazil, Denmark, Turkey Government of Korea
- 8. 8 Interim Evaluation Technology Item Before (~2009) Surveyed (2013.01) Anticipated (2013.05) Smart Power Grid 1.4 2.6 4.2 Smart Consumer 1.0 3.3 4.0 Smart Transportation 0.5 2.5 3.0 Smart Renewables 1.2 3.0 3.7 Smart Electricity Service 0.2 2.3 3.5 Total 0.8 2.8 3.5
- 9. 9 Item Business Model Smart Consumer Domain ① Electricity Resale Service ② Demand Response Service ③ Retail Market Service ④ Virtual Power Plant Service Smart Transportation domain ① EV Charging Service ② Mobile Charging Service ③ EV Rental Service Other Domains ① Energy Usage Consulting Service ② Load Leveling & Power Quality Improvement Business Model Interim Evaluation Business Model
- 12. Clean Energy Solutions Center and the International Smart Grid Action Network (ISGAN) Jeju Island Smart Grid Project March 6 , 2014 Moderator: Sean Esterly – National Renewable Energy Laboratory Panelists: Bruce Lee – International Smart Grid Network (ISGAN) Hans (Hyungsoo) Kim – Korea Telecom
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- 16. Agenda Welcome and Introductory Remarks Overview of the Clean Energy Solutions Center Sean Esterly: National Renewable Energy Laboratory Presentations - Panelists: Bruce Lee: Deputy Secretary General, International Smart Grid Network (ISGAN) Hans (Hyungsoo) Kim: Korea Telecom Questions and Answers Closing Remarks Survey 5
- 17. Clean Energy Ministerial & UN Partnership Supporting the Solutions Center 6 • Clean Energy Ministerial (CEM) launched the Clean Energy Solutions Center in April, 2011 for major economy countries • One of eleven CEM Initiatives • Led by Australia and U.S. with other CEM partners • Partnership with UN-Energy is extending scope to support all developing countries • Enhance resources on policies relating to energy access, small to medium enterprises (SMEs), and financing programs • Offer expert policy assistance to all countries • Expand peer to peer learning and training
- 18. Clean Energy Solutions Center http://www.CleanEnergySolutions.org 7 • Serve as a first-stop clearinghouse of clean energy policy resources. • Share policy best practices, data, and analysis tools across countries. • Deliver dynamic services that will enable expert assistance, learning, and peer to peer sharing of experiences • Foster dialogue on emerging policy issues and innovation across the globe. Goals • Primary: • Energy policy makers and advisors • Analysts • Secondary: • Private sector companies, • Energy entrepreneurs and investors • Non Governmental Organizations • Civil society • Others engaged in clean energy Target Audiences
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- 21. Bruce Lee, Deputy Secretary General, International Smart Grid Network (ISGAN) 10 Mr. Bruce Lee is a Deputy Secretary General of the International Smart Grid Action Network(ISGAN) since 2012, dealing with Smart Grid and Renewable Energy projects which are related with global climate change. He currently manages all affairs including project related, financial issues and other operational management issues in ISGAN Secretariat. Prior to joining ISGAN, he has experienced a variety of career. He served as a country head of Korea for Oracle Financial Services Software(OFSS, incorporated in Singapore), a global Financial Solution Vendor for 6 years since 2006, and successfully managed several big financial management and Anti-Money laundering application projects in Korea as well as Asian countries including China, Hong Kong, Singapore and Taiwan. He also had brilliant career in international financial institutes more than 15 years, especially 6 years in Hong Kong, specialized his career in business operation, financial risk management and fund mobilization areas. Previously he was a researcher at Korea Eximbank. Bruce Lee holds a Bachelor’s degree in Chinese Literature from Hankuk University of Foreign Studies.
- 22. Dr. Hyungsoo Kim (Hans), Korea Telecom 11 Dr. Hyungsoo Kim has worked at KT (Korea Telecom) R&D part from 1993. He had successfully led outstanding projects in relation to B-ISDN (Broadband-Integrated Digital Network), NGN (Next Generation Network), IP QoS (Quality of Service), Green ICT and Smart Grid field trial in Jeju island. Now he is responsible for leading the business and the technical strategies for Smart Grid and K-MEG (Korea-Micro Energy Grid), as a Director of Smart Grid Department in KT. Dr. Kim has a Ph.D. in electronics engineering from Kon-Kuk University. In addition to his role in KT, Dr. Kim has participated ITU-T based international standards activities, since 1997. Now he is working as a vice-chairman for ITU-T Study Group 12 and ITU-T Focus Group on Smart Grid.
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- 28. Economy Overview – South Korea
- 29. 수색 삼계 154kV 345kV 765kV System overview in 2008 ※SAIDI: The System Average Interruption Duration Index Rate of transmission & distribution loss : 4.01% (1st in the world) Blackout duration (SAIDI) : 16.08min (2nd in the world) Load factor: 76.6% (1st in the world)
- 30. 912 1217 950 856 1415 2009 2010 2006 2007 2008 Unit: one hundred million dollars Source : Ministry of Knowledge & Economy Energy Imports Energy dependency
- 31. Electricity Industry KEPCO : TO, DisCo, LSE KPX (Korea Power Exchange) : SO, RTO, MO 6 KEPCO affiliated Companies : GenCo Other 7 IPPs Consumer MO(KPX) GO (IPP, Private) GO (affiliates) GO(Community Energy Businesses) Private Distribution Lines T&D, Sales (KEPCO) Self- Generation Plant Owners Consumer Consumer Large Volume Consumer Community Consumer Surplus Shortage CHP Heat Electricity •TO: Transmission Owner •DisCo: Distribution Company •LSE: Load Service Entity •SO: Service Operator •RTO: Regional Transmission Org •MO: Market Operator •GO: Generation cOmpany •IPP: Independent Power Producer
- 32. 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 2,326 1,698 705 520 423 329 322 263 227 226 Source: Consumption of Energy and Oil 2006: BP Statistical Review of Energy(BP,’07.6) Electricity Consumption “Electricity usage is increasing because of low price and easy access.”
- 34. Announced National Vision (Low Carbon Green Growth) Aug ’08 Smart Grid National Roadmap Committee Apr ’09 Launched Smart Grid Jeju Trials Dec. ‘09 Technology R&D Law & Regulations Revision StandardizationTechnology R&D Standardization Field Trial in Jeju Island
- 35. Five Domains Construct intelligent grid network Build energy efficiency use Infrastructure Build Electric Vehicle Infrastructure Operation of stable & clean energy Provide new electricity service
- 36. Leader Participants Investment(us$) Smart Place Smart Transpor- tation Smart Renewables Smart Power Grid Smart Electricity Service LS IS, KDN (KEPCO affiliate), wtc (18 companies) Wooam Corp., Bitek,IC etc (5 Companies) Consortia
- 37. Trial Sites
- 38. Key Technology Deliverables Business Model Goals by Critical Index To increase energy efficiency and reduce energy use via AMI To control energy use via two-way communication energy management System Develop AMI and set standard (2012) Develop system to connect DR with the grid (2020) Emergence of smart appliances and energy management service providers Emergence of prosumers (sell and consume) Energy save(%) Smart meter installation(%) ‘12 ‘20 ‘30 ‘12 ‘20 Demonstration 5.6 100 5 10 Objectives Domain 1 - Smart Place Factory House Building Power Plant
- 39. Key Technology Deliverables Business Models Goals by Critical Index To establish charging infrastructure To allow consumers to charge during low-demand/low-rate hours and re-sell During peak hours Develop EV parts and materials (2012) Develop Vehicle to Grid system and ICT service (2020) Emergence of EV/battery rental service Emergence of EV operating management service business EV Distribution(1,000 units) EV Charging infra (1,000 units) ‘14 ‘20 ‘30 ‘12 ‘20 ‘30 0.5 430 10 2,714 152 2,456 Objectives Domain 2 - Smart Transportation Power Plant Factory House Building
- 40. Key Technology Deliverables Business Models Goals by Critical Index To create large-scale renewable generation power plants To build green homes and buildings that are energy independent using renewable Develop technology for stable connection of renewable generation to the grid (2012) Develop ESS for bulk renewable generation (‘20) Production and sales of renewable energy Exportation of ESS that is connected to the grid Renewable Energy(%) Zero net energy building(%) ‘12 ‘20 ‘30 6.1 Pilot City3.1 11.0 10 30 ‘12 ‘20 ‘30 Objectives Domain 3 - Smart Renewables Power Plant Factory House Building
- 41. Objectives Key Technology Deliverables Business Models Goals by Critical Index Pilot smart grid technology :distribution/ transmission (‘12) Implement self/automated recovery system for broad area To establish bidirectional power grid that allows new integrated/complex businesses To increase energy efficiency and quality through self-automated recovery system Testing/ certifying system of smart power grid technology Exporting key smart power grid ‘12 ‘20 ‘30 ‘12 ‘20 ‘30 3.9 3.5 3.0 15 12 9 Transmission/ Distribution Loss(%) Power failure (min) Domain 4 - Smart Power Grid Power Plant Factory House Building
- 42. Key Technology Deliverables Business Models Goals by Critical Index Develop real time pricing and demand response system (‘12) Develop on-line power exchange system (2020) To encourage TOU pricing with consumer participation To promote on-line system for power exchange and derivatives Customer based power providers Diverse power derivatives are expected to emerge Consumer participation (%) ‘12 ‘20 ‘12 ‘20 ‘30 Demonstration Pilot City Nationwide 15 30 Objectives TOU billing Domain 5 - Smart Electricity Service Power Plant Factory House Building
- 43. Energy Storage Smart Appliance Smart Box (G/W) Smart Meter Smart Tag EV charger Smart Meter BEMS/ FEMS PCS Solar E/S Wind Smart Power Hub Building/ Factory EV Charger FTTH WCDMA/WiBro Power Market HEMS MDMS REMS DRMS Billing Asset Mg. App. CEM EMS PCS Solar ※ REMS(Renewable Energy Management System) ※ DRMS(Demand Response Management System) ※ CEM(Carbon Emission Management System) Architecture – KT Consortium
- 45. EV Charging, V2G Technology Verification
- 47. 2009 2030 2020 2012 Smart Grid promotion law enacted Jeju Field Trial Started Deployment Jeju Trial completed Metro-wide Smart Grid Roadmap by MKE Nationwide Smart Grid 2011 Jeju Field Trial 2nd Stage 1st 5 year Action Plan launched (MKE : Ministry of Knowledge & Economy) 2nd 5 year Action Plan 2017
- 48. Smart Grid Promotion Law Needs for Systematic & consistent Smart Grid Business promotion Limitation of current regulation and systems Promoting Integration of power infrastructure with IT for co-growth • Set up Smart Grid Implementation Action Plan (5 year span) • Smart Grid Service Provider Registration • Subsidies for Smart Grid Private Investment • Dedicate Areas for Smart Grid Implementation • Certification & Standardization Backgrounds Legislation
- 49. Obstacles Holdbacks Against Early Deployment Regulation (for Smart Grid Trials ) Skeptical Eyes of Stakeholders Low Consumers’ Participation (Weak Impact on Residential Consumer) Lack of Business Models Reluctance of Market Player with Vested Interest Lack of Private Investment Attraction Low and Uniform Pricing Low Incentives for Private Investment Too Many Technologies Options vs. No Technology
- 50. Implications Solutions for Early Deployment Deregulation for Market Entry, Competition Dedicated Joint (Gov + Private) Organization for Smart Grid Planning Government’s consistent Will and Driving Force Promotion to Provoke Participation R&D Competition and Incentives Discover DR Resources and setting up utilization plan Introduction of Various Pricing (TOU , CPP , Sliding Scale on Oil Price) Technology vs. Behavior (Habits) Budget for Operation for DR Market Make most of Other Industry Technologies Voluntary Competition among Local Autonomous Governments Network Security & Data Privacy Preparation
- 51. Smart Grid – National Roadmap 50,000 new jobs 230 Million t 47 Trillion won 49 Trillion won 74 Trillion won 3.2 Trillion won Effects from introducing smart grid system nationwide by 2030 Creation of Reduction of GHG Reduction in energy imports Increase in smart grid related exports Creation of smart grid-related demand Reduction in construction costs of new power plants