In announcing the project, Enedis stated the importance of security and reliability of the electrical supply, in a context of accelerating electrical uses from the upcoming Olympic games.

In Seine-Saint-Denis, the replacement of one of the transformers at the Bourget source substation will allow Enedis to strengthen the quality of power supply for several decades and anticipate the demographic and economic growth of the region that will test the system’s resiliency.

Arrived by convoy from Saint-Leu-d’Esserrent in Oise, the new transformer can accommodate almost a double amount of electrical power, from 40MVA to 70MVA. 

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The substation is set to become one of the most powerful in the Ile de France region that includes Paris and its surroundings, according to the DSO, and will secure the electricity supply for 52,000 customers.

The replacement of the transformer coincides with the calendar of the Paris 2024 Olympic and Paralympic Games as part of the event organiser’s goal to connect 100% of the sites to the electricity network, rather than using generators for their power supply.

Similarly, earlier this year, Enedis announced the rollout of electric terminals to connect event sites across France to the grid to minimise carbon footprint of the event.

The aim of the app is to enable users to optimise how and when energy is used around their homes, integrating smart devices, such as electric vehicle charge points and solar panels, regardless of their brand.

“There’s a lot of clever technology out there that helps people manage the energy in their homes but, incredibly, there’s nothing in the UK that works with different brands and devices, meaning people can’t currently control all the energy devices across their home in one place,” said Swarm Co-Founder and Chief Technology Officer Anthony Piggott.

“We knew we could create something to change this and with [Opencast’s] tech expertise and our knowledge of the energy sector, we have the ability to make something really exciting: one app to control every aspect of energy in the home.”

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Demonstration and testing of the new app are set to take place in a purpose-built energy hub at the Hoults Yard business village in Newcastle, where the two companies are based, with the first iteration planned for launch in autumn 2023.

Growing UK consumer interest in green innovations

The availability of such apps as Swarm’s would appear to be timely, with a new survey from McKinsey & Company of more than 2,000 consumers revealing a soaring demand for green energy innovations to curb high energy prices and reduce household bills.

McKinsey reports that as wholesale prices have started to fall enabling retailers to offer lower prices the incentive to switch suppliers, after record low levels, has increased and a third of consumers are considering switching, while almost half are willing to adopt some form of time-of-use tariffs.

Further, a quarter are also willing to buy additional green products and services from energy retailers such as energy management services, solar panels, electric vehicle chargers and heat pumps.

With this suppliers also have the opportunity to attract more customers and diversify their offerings by curbing costs, simplifying processes and boosting public awareness of new energy products and services, McKinsey indicates.

Kiril Bliznakov, Senior Partner at McKinsey, says the survey findings point to the driving of a more competitive market where low cost and low carbon tariffs, products and services will be the key differentiators of the future.

“The ‘gamification’ of energy services and rising demand for energy-as-a-service offerings will create new opportunities for suppliers to increase long-term customer loyalty and to both decarbonise and cut household bills.”
 

The concept, an approach to managing the vegetation in the spaces beneath power lines – so-called ‘grid corridors’ – has come to be adopted increasingly by system operators but its rollout across Europe remains elusive.

This is according to the Renewables Grid Initiative, which reports engaging with the topic for many years and now taking the next steps to developing and implementing policies to advance it.

Integrated vegetation management is focussed on the ecological health of the grid corridors, while still removing vegetation which could interfere with the system security by touching a line.

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Typically, this involves the selective removal of fast growing trees and invasive species, while promoting low growing native plants and creating new habitats that thrive among these plant communities, as well as exploring new economic opportunities for local stakeholders.

Resultant benefits have been documented for nature, people and the grid operators alike, ranging from improvements in local biodiversity to the engagement of local actors in vegetation management support.

Indeed, a cost-benefit analysis by Elia of an initiative run together with the French TSO RTE and the Ecofirst cooperative consultancy has estimated integrated vegetation management to be up to almost four times less expensive than traditional management over 30 years.

As the first of the next steps, the Renewables Grid Initiative has launched a series of workshops for European TSOs and DSOs to share experiences and discuss pathways forward.

Outcomes from the first of these in June, which focussed largely on the LIFE Elia-RTE project, were the identification of three key priorities of which one is the need for guidance and potentially standardised methodologies to collect and disseminate the benefits of integrated vegetation management.

A second is the harmonisation of regulatory remuneration and financing mechanisms across the EU and the need for guidance on the funding mechanisms available.

Third is support on balancing nature restoration with access to the grid assets for maintenance purposes and the need for bird protection.

These and other activities will now be addressed further in the second of the Initiative’s steps, a new working group of European TSOs and DSOs, which has been formed with the aim of moving towards a coordinated approach to integrated vegetation management in the region.

“Europe will do whatever it takes to keep its competitive edge.”

So said von der Leyen during her 2023 State of the European Union (SOTEU) address, announcing the EVs inquiry as one of two inititiatives to do just that, the other being a support package for the Union’s wind sector.

State of the EU

Referring to the importance of the European Green Deal at the start of her term in 2019, von der Leyen led her State of the Union address with the importance of the energy sector in enhancing Europe’s position as a competitive global player.

“Four years ago, the European Green Deal was our answer to the call of history and this summer, the hottest ever on record, was a stark reminder of that.”

Referencing the extreme wildfires and flooding experienced this year in Greece and Spain, as well as chaotic extreme weather in Bulgaria and other member states, von der Leyen emphasised how, although much has been done towards net zero, “our work is far from over.

“This is the reality of a boiling planet. The European Green Deal was born out of this necessity to protect our planet, but it was also designed as an opportunity to preserve our future prosperity.”

EV inquiry

This initiative, placing Europe again on the map against global energy competition majors such as the US and China, has been in the works through 2023 via tabled policies such as the Net-Zero Industry Act and the Critical Raw Materials Act.

However, although placing Europe on the map as a leading energy player will be key, von der Leyen also cautioned against isolating competitors:

“Our industries and technology companies like competition. They know that global competition is good for business and that it creates and protects jobs here in Europe. But competition is only good as long as it is fair.”

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Hence, the investigation into imported electric vehicles (EVs):

“Take the EV sector. It is a crucial industry for the clean economy with a huge potential in Europe, but global markets are now flooded with cheaper Chinese electric cars; their prices kept artificially low by huge state subsidies.

“This is distorting our market and as we do not accept this distortion from the inside of our market, we do not accept this from the outside.

“I can announce today that the Commission is launching an anti-subsidy investigation into electric vehicles coming from China (…) Europe is open to competition, but not for a race to the bottom.”

This, adds von der Leyen, is part of a strategy to “de-risk, not decouple” trade practices in the EU, a way to boost the Union’s competitiveness while retaining beneficial relations.

According to Reuters reportage, one of many reactions to the announcement of the EVs inquiry was from Sigrid De Vries, head of the European Automobile Manufacturers’ Association (ACEA), who commented on how “China’s apparent advantage and cost-competitive imports are already impacting European auto makers’ domestic market share, with a massive surge in electric vehicle imports in recent years.

“Von der Leyen’s announcement is a positive signal that the European Commission is recognising the increasingly asymmetric situation our industry is faced with, and is giving urgent consideration to distorted competition in our sector.”

Also commenting was Germany’s VDA Automotive Industry Assocation, which cautioned how “damage must be causally quantifiable and the community interest must be taken into account. Possible backlash from China must also be taken into account.

“One thing is clear: an anti-subsidy investigation alone will not help to solve the existing challenges with regard to the competitiveness of the European landscape. Policymakers in Brussels and Berlin must create the framework conditions to ensure that the transformation succeeds.”

The other initiative is focused on the wind sector, which has been “facing a unique mix of challenges and this is why we will put forward a European wind power package, working closely with industry and member states.”

The package, according to von der Leyen, will go towards fast-tracking permitting, improving the Union’s auction systems, boosting skills and supply chains and enabling eased access to finance.

The EGL1 project will see the creation of a 525kV, 2GW HVDC (high voltage direct current) subsea transmission cable from Torness in East Lothian, Scotland to Hawthorn Pit in County Durham, England, enabling the transmission of renewable green energy to power more than two million homes across the UK.

Utilities SP Transmission (SPT) and National Grid Electricity Transmission (NGET) selected the suppliers to provide engineering works and technology for HVDC converter stations, which form the terminals for the HVDC cable and convert the direct current to the alternating current used in the onshore transmission network.

“As the consortium leader, we are delighted to be chosen as a preferred supplier together with our partner MYTILINEOS in the development of a new subsea electricity superhighway, the Eastern Green Link 1 (EGL1) project,” said Philippe Piron, CEO at GE Vernova’s Grid Solutions business.

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This latest milestone for the EGL1 project follows the recent announcement of Prysmian Group being selected as the exclusive preferred bidder for the HVDC cabling contract.

The HVDC cable system is approximately 190km in length with converter stations at either end to connect it into the existing transmission network infrastructure.

HVDC technology provides the most efficient and reliable means of transmitting large amounts of power over long distances subsea, according to NGET.

GE Vernova’s Grid Solutions business will be providing HVDC valves and controls systems, as well as HVDC transformers from their facilities in Staffordshire, UK.

UK minister for nuclear and networks, Andrew Bowie said: “We have a world class renewables sector that help us power Britain from Britain with reliable, clean and affordable energy for families and businesses.

“With investment in renewables rising by 500% since 2010, we must continue to transform our electricity network to ensure we can move power from where it is generated to where it is needed. Projects like this will do just that and help us to grow the economy, reduce bills, achieve net zero and strengthen our energy security.”

Added EGL1’s project director Peter Roper: “This is a critical time for the energy sector as it drives the transition to net zero.

“GE Vernova’s Grid Solutions business and MYTILINEOS as preferred suppliers, are leading specialists in this high technology field and bring considerable expertise in delivering the infrastructure required to meet the UK’s future energy needs and net zero targets.”

The upgrade includes three further subsea links between Scotland and England, of which this joint venture is the first.

Following final approval of regulatory allowances from Ofgem, full contracts for EGL1 are expected to be complete later this year with construction work due to begin in 2024. The project’s targeted operational date is 2029.

While the full visual design has not yet been made public, ‘New Energies’ is described as a multi-functional system aimed to make the most of the natural elements – sun, light, wind and rain – and combining energy efficiency with an optimal balance between the investments and the economic, environmental and social benefits.

In this way it is intended to be versatile and to meet the need to modernise the electrical infrastructure with a sustainable footprint throughout its lifecycle.

Features include rooftop solar panels, a porous floor that lets in rainwater and prevents the formation of heat islands and a wave fence with a modular grid design that lets in light and wind.

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In addition, plants will be grown all around the substation with the adoption of the Miyawaki method, which involves the dense planting of fast growing smaller native species under taller trees.

The primary goal of the challenge was to create a sustainable modular architecture for primary substations, with a high level of versatility and replicability and optimisation of the space.

A key goal was that the infrastructure needs to blend in with the environment, with an innovative design combining safety with flexibility and with improved visual, functional and spatial impact.

The challenge attracted 36 entries from engineers, academia, designers and architecture and construction companies from 16 countries, and was adjudged by a similarly multi-disciplinary panel.

Other proposals that were awarded special prizes and will be implemented in existing facilities were from the Rome-based architecture practice NEXT Urban Solutions in collaboration with the visual artist Filippo Riniolo, by architects Andrea Bautista and Jessica García Huachez and from the Milan design practice Vittorio Grassi Architects.

Enel states that the primary substation design challenge forms part of a larger process that Enel Grids has set in motion aimed at modernising and redesigning the key elements of the distribution networks.

Earlier redesigns have focussed on the design and structure of meters, street cabinets, secondary substations and power line supports and the next step is on the larger and more complex infrastructure.

The approximately 30 different challenges launched over the last two years have led to hundreds of proposals based on more circular practices “to increase grid automation and digitalisation, deliver state-of-the-art solutions that ensure safety and productivity in field operations and reduce the environmental and economic impact of building new facilities, with a special focus on biodiversity and harmonious integration with the local environment and thereby eliminate the carbon footprint of the grids”, the company states.

The study, aimed to investigate the impact of the large-scale integration of hydrogen electrolysers to the grid, points to hydrogen as complementary to electrification for decarbonisation targets rather than a target in itself, with the first applications likely to be for substituting grey hydrogen in present industrial processes.

However, electrolysers will progressively become an additional system element, which implies that it should be planned and operated synergically with the rest of the energy system.

The report identifies four key issues, i.e. the relationship between supply and demand, the use cases and their impact on the grids, flexibility and the impact on system planning.

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As a new system component, the recognition of green hydrogen requires an ad-hoc scheme, valid across jurisdictions, for the infeed electricity encompassing the additionality principle, in order to avoid double counting and greenwashing as well as cannibalisation of other decarbonisation processes.

In addition, there needs to be both geographical and time correlation to ensure the utilised renewable energies are not impaired by grid congestion.

At the grid operation level, in order to better exploit the variability of renewable energies, the flexible operation of the power system requires to decouple as much as possible the profiles of green hydrogen production from hydrogen consumption.

This means having enough storage elements both in the power system and in the hydrogen system.

With this, the hydrogen system also can provide long-term flexibility, through storage of excess renewables in gas reservoirs, as well as adequacy support.

Short-term flexibility services also are possible via demand response and balancing from electrolysers.

In terms of planning hydrogen projects should be designed and assessed starting from the end use case, volumes and costs, not from the supply side, which must follow the needs of the end user.

From the energy system point of view, the deployment pace of electrolysers should match the increase of the large amount of additional renewables volumes required for producing green hydrogen, in order not to cannibalise other decarbonisation processes.

Other infrastructure, such as pipelines and storage facilities, also need to be coordinated with grid developments as well as end user needs.

The report also notes ‘hydrogen valleys’ as a promising configuration for starting the development of comprehensive use cases.

In conclusion, the report highlights the need for a ‘one system’ view, noting that the viability of hydrogen projects is both case and country-dependent.

Win-win solutions matching business needs with system requirements must be found in order to maximise the benefits for all stakeholders.

For a smooth but fast transition phase, repurposing the gas grid, also through initial blending, is suggested as a viable and smart option to enable a gradual phase-out of natural gas and set-up of a hydrogen market.

The project EDGE (Energy from Distributed Resources for the Management of the E-Distribuzione Network) aims to test and establish the most appropriate solution for the procurement of local ancillary services and related remuneration in Italy.

The project will initially cover areas in four provinces, Cuneo and Venice in the north of Italy and Benevento and Foggia in the south.

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“We are incredibly excited to launch this new market alongside E-Distribuzione, which is setting a new, leading standard for what can be achieved through DSO flexibility markets,” says James Johnston, CEO and co-founder of Piclo.

“This unparalleled development across Europe marks a new era for these markets including short-term flexibility services, greater integrations and end-to-end automation and ultimately improved network decarbonisation and resilience. We can’t wait to get going.”

The EDGE project is focussed on providing active power regulation services, in order to comply with network constraints in both normal operating conditions and reconfigurations caused by failures or scheduled works.

Potential resources that can participate include production and consumption units, battery storage units and electric vehicle charging systems with delivery from both residential and non-residential users.

Piclo Flex as an independent marketplace will provide the end-to-end solution to acquire and dispatch the flexibility services to E-Distribuzione’s networks.

For Piclo the project marks a further step in the growing use of the platform around the world by network operators, including four DNOs and the TSO in the UK as well as others in Ireland, Portugal, Lithuania and New York state in the US.

As of 2022, Piclo Flex had 55,000 registered flexible assets representing 16.6GW of flex capacity, with flexibility contracts awarded totalling £58 million (US$73 million) and 1.1GW+ of flexible capacity procured.

E-Distribuzione is part of the Enel Group and is the largest DSO in Italy.

The EDGE project was initiated in response to the EU’s Clean Energy Package and the growing need for flexibility in Italy, with the government’s plan to add at least 70GW of renewable energy capacity by 2030 to cover 30% of the gross energy consumption.

In announcing his position on the board, Chameleon Technology cites his decades of experience in an advisory capacity to help bolster the company’s ambitions in helping UK consumers reduce their climate impact by developing connected, clean and cost-effective home energy solutions.

Mike Woodhall, CEO and co-founder of Chameleon Technology, states, “Howard’s experience will be invaluable as an advisor to the board.

“His passion for the future of the UK’s electrical network, not to mention his participation in many government panels and task forces, means he has a wealth of knowledge and insight to share with us as we accelerate our growth. We look forward to him working closely with the senior team.”

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Dr Porter adds, “I am delighted to join the Chameleon Technology team to assist in their future development and expansion. My experience in consumer-focused technology will integrate well with the existing expertise of the organisation.”

Dr Porter worked as CEO of BEAMA for 25 years, helping the association to expand its expertise into a greater range of energy-related technologies.

Over this time he has held a number of UK and European senior roles including chair of the ORGALIM board in Brussels and the EURIS group of associations through the BREXIT negotiations.

He has also created a number of senior advisory groups including the BEAMA Senior Sector Council. Dr Porter has also played a crucial role in helping the creation of the UK and European smart metering systems and assisted the industry during the COVID pandemic.

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Dr Porter will continue in an advisory role to the BEAMA Board and will represent BEAMA and the UK electrotechnical industry as a member of the IEC market strategy board.

The Lithuanian TSO delivered an autotransformer to the country, which they state will provide electricity to hundreds of thousands of consumers.

The total market value of the equipment is about €3.6 million ($3.9 million), which consists of the autotransformer and other power grid equipment shipped earlier this year.

According to Litgrid, the 330/110/10kv autotransformer will be crucial for the Ukraine grid system as it is the main and most expensive device of the transmission grid substation.

Other 330kV and 110kV voltage transmission network devices, including disconnectors, switches, surge arresters, current and voltage measuring transformers and isolators reached Ukraine earlier this year in April.

The equipment will help ensure the supply of electricity, as Russia targets Ukraine’s energy grid.

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Lithuanian Energy Minister Dainius Kreivys commented on the aid package: “As Russia is purposefully destroying Ukraine’s energy infrastructure, we aim to help rebuild and strengthen Ukraine’s electricity transmission network.

“The second very powerful and necessary autotransformer sent to Ukraine from Lithuania will supply electricity to hundreds of thousands of residents. Lithuania’s support to Ukraine’s electricity, gas and heating sectors already exceeds €11 million ($11.8 million), and we will not stop supporting Ukraine in the future.”

A 200 megavolt-ampere autotransformer is very valuable for the Ukrainian electrical energy system: both Lithuania and Ukraine use the same voltage levels, and producing a new one of the same specifications would cost more than €2.5 million ($2.7 million) and would take about two years.

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The autotransformer ready for transport weighs almost 200 tonnes, is three meters wide, five meters high and ten meters long.

“After the arrival of the most important device for the electricity substation – the autotransformer – we can say that the entire second support package has reached the transmission system operator Ukrenegro,” stated Litgrid CEO Rokas Masiulis.

“An autotransformer and other grid equipment will help rebuild the war-damaged infrastructure. While modernising our country’s substations, we set aside various devices suitable for use in reserve. We will continue to support Ukrainians with them to make electricity supply as reliable and safe as possible.”

Other equipment from the EPSO-G group companies Litgrid and Amber Grid, intended for the restoration of electricity and gas transmission grids, arrived in November last year.

Support for Ukrainian energy infrastructure companies is collected and transported with the help of the Embassy of the Republic of Lithuania in Ukraine, and the Ministries of Energy and Transportation.

The transport services of the aid sent by Litgrid to Ukraine are financed by the European Union.

Bitcoin mining energy consumption revised down

The Cambridge Bitcoin Electricity Consumption Index, one of the key resources in this area, has had its first major revision since its launch in 2019, leading to a reduction, albeit relatively small, in consumption.

For example, for 2021 where the largest discrepancy occurs, the earlier estimate of 104TWh is revised downward by 15TWh to 89TWh.

For 2023 the estimated anticipated consumption based on the year-to-mid-August is 70.4TWh, rather than 75.7TWh of the earlier model.

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The Cambridge team attribute the change to the modelling of the Bitcoin mining hardware and technology, taking into account both the increased efficiency and power of the evolving application-specific integrated circuits (ASICs).

With the progressive reduction in chip size, there has been a corresponding reduction in power needed to transmit data.

However, this now appears to have slowed and steadied as the advances have approached the physical limits of semiconductor technology, with smaller chip manufacture becoming more challenging and expensive.

The Cambridge team expresses confidence in their estimates and regards each update as a progressive step toward enhancing their reliability, but the team acknowledges that Bitcoin’s actual electricity consumption remains elusive and can only be approximated.

Moreover, while electricity consumption is a crucial element in determining Bitcoin’s environmental footprint, it is one and the energy sources used in mining are just as important. Further research is planned to focus on developing a more nuanced perspective of Bitcoin’s electricity mix and more closely examining the climate risks and opportunities associated with cryptocurrency mining.

Samsung to add generative AI to home appliances

Samsung has been reported as planning to add a generative AI feature to its home appliances in the next year.

Yoo Mi-young, head of the software development team of Samsung’s digital appliances division, was reported speaking at the IFA consumer electronics show in Berlin: “Generative AI technologies will be applied to voice, vision and display” to enable the household electronic products to have a better understanding of what consumers do and want and to be able to respond accordingly.

It will enable the gadgets to communicate with users in a more conversational manner, and to better respond to their questions based on past exchanges and in context.

They will also be able to provide recipes and dietary suggestions based on for example the food ingredients stored in the refrigerator.

Yoo Mi-young was also quoted as reporting the development of an energy-efficient chip to process the increasing amounts of data of smart appliances, with features such as generative AI.

Hydrogen-powered van doubles the range of EV counterparts

Canadian hydrogen company First Hydrogen has reported that its hydrogen fuel cell powered light van supplied to GB fleet management provider Rivus has achieved an “unbeatable range”, easily more than doubling the upwards range to 240km of other modern light commercial electric vehicles.

The vehicle was trialed with Rivus for just over 4 weeks, and covered over 1,100km in that time. Tests were completed on diverse routes, providing data on how the vehicle operates under different conditions including urban city centre driving and extra urban routes covering both low-speed city centre roads and motorways.

The tests also covered the van both empty and loaded to 90% of its maximum weight capacity, reflecting the way vans will be used in the real world.

The vehicle was found to be not heavily affected by the speed or the payload, and performed well under the different load cycles compared to the electric counterparts, which can experience reductions in range by approximately 10%.

“The main benefit of the vehicle is the refuelling times are quicker than battery electric vehicles charge times. And of course, unlike internal combustion engines, hydrogen vehicles produce zero emissions,” Gemma Horne, Warranty Controller at Rivus, commented.

With grid connection lead times a key issue in accelerating the scale up of renewables, top factors identified include the pre-occupied capacity of the grid although not yet physically congested, permitting, materials shortages and poor qualification of plant connection technical project designers and errors in the projects.

This comes with the majority of survey respondents stating that connection times do not match the expectations of customers or government, although just over half say they do match the expectation of their DSO.

The grids in Europe, as they are elsewhere, are being challenged with the rapid scale up of renewables. Further the pressure is expected to increase with the increased demand of electrification.

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This is projected to require a five-fold upswing in intermittent generation by 2050.

With the two main technical challenges of network inadequacy and instability, it is the time for grid operators and policymakers to rethink current planning, connection and operation processes as well as to take responsibility for coordinating among energy system stakeholders to construct a future-proof 21st century power grid, states E.DSO in the report, which was prepared in collaboration with McKinsey.

Based on measures taken by DSOs and other input to address these issues, the report sets out recommendations to support the connection of more renewables to the existing grids and to minimise their connection lead times.

Number one is to reduce the permitting times, mainly through automation and digitalisation.

There should be transparent, and ideally EU-harmonised, rules for congestion management to facilitate the use of non-firm connections and transparent rules for handling connection queues, improving information to the client and minimizing the possibility of litigation. .

On technical skills, improvement should be supported, for instance by setting up an online or ‘in person’ training to certify the skills and knowledge necessary to carry out grid connection processes and education programmes should be promoted.

For grid management and planning the use of non-firm connections should be evaluated and reactive power management should be introduced.

Renewables advanced functionalities recommended include the implementation of droop control and digitalisation of the renewable connection.

In addition, smart grid control and ADMS should be leveraged to achieve integrated and real-time observability and control for the entire distribution network and smart inverter functions used at LV level to facilitate grid management and, in turn, possibly enable additional DERs connection.

Catherine Vandenborre, currently the group’s chief financial officer, will take over on Peeters’ departure, which is set for 30 October 2023.

In the coming weeks, he will continue to oversee the daily management of the company.

In a statement, Peeters said Elia Group is “on the right track to succeed in the energy transition”.

“I would like to thank the board of directors, public authorities and all our stakeholders for the opportunities they have given me and the trust they have placed in me during my time at Elia Group.”

He added that “after eight intense years with Elia Group, it is time for a change and time for me to embrace a new challenge”.

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Peeters will move on to be CEO of the Belgian Post Group (bpostgroup). He said: “The time is ripe for a new phase in my career and with bpostgroup I will be able to lead in a sector that deeply interests me and that is undergoing major transitions in a rapidly evolving international context.

Vandenborre was previously a member of the Executive Committee of European energy exchange APX-ENDEX. She has been Elia Group CFO since 2014 and in her new position will oversee two TSOs – Elia in Belgium and 50Hertz in Germany.

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Also on the radar are a €140 million ($150 million) financing round for investor EIT InnoEnergy as Europe is set to update energy policy, and a triple acquisition of US gas utilities by Canada-based Enbridge.

Shell to reportedly sell sonnen

On Thursday, German publication Handelsblatt reported that oil giant Shell intends to sell sonnen, the German developer of energy storage systems.

The report comes in as Shell moves to divest its retail operations within the UK, Netherlands and Germany as part of a strategic restructuring.

The strategy follows the company’s review of market conditions, announcing in June its retail exit.

Kicking off the strategy late last week, Shell sold its UK and German domestic operations to energy major Octopus Energy.

Shell’s Dutch operations are winding down and in the process of transition.

Shell acquired sonnen back in 2019. According to Handelsblatt, the sale will be a significant deal for Shell, which acquired the Bavaria-based company for €500 million ($535 million); the sale is expected to be valued between €1.35 billion ($1.4 billion) and €1.8 billion ($1.9 billion), according to Handelsblatt.

So far, sonnen has had a very strong 2023 with an expected turnover of €450 million ($482 million). Earlier this year the company announced increased capacity of its German VPP at 250MWh, marking the largest in Europe.

The company is expecting to grow the demand response tech, which consists of tens of thousands of intelligently-controlled sonnenBatteries throughout Germany, to 1GWh in the coming years.

Shell has declined to comment.

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EIT InnoEnergy’s private placement round

Dutch energy investment company EIT InnoEnergy has received over €140 million from strategic players in industrial, financial, training and digital sectors in a private placement round.

According to the company, proceeds from the financing will be used for increasing new deal flow, launching new industrial initiatives, tapping opportunities from new regulatory frameworks and expanding in the US.

InnoEnergy’s portfolios focus on early-stage innovative technologies and teams in clean tech, normally CAPEX heavy.

InnoEnergy currently has a portfolio of 200 companies, three of which are unicorns, on track to generate €110 billion ($118 billion) in revenue and save 2.1G tonnes of CO2e accumulatively by 2030.

According to InnoEnergy, these companies have collectively raised €9.7 billion ($10.4 billion) in investment to date.

Tabled earlier this year, the European Union has been expecting to pass several policies in mind of better enabling its industrial capacity within the energy sector.

Namely, the European market design has had a proposed reform and the Green Deal Industrial Plan – within which are contained the Critical Raw Materials and Net Zero Industry Acts – will aim to upskill the workforce, develop European clean tech supply chains and lower barriers to deployment.

Part of the private placement round will, states InnoEnergy, also be used for training and upskilling:

“The new skills, and the larger workforce we will need to fulfil net zero objects, are significant, so with our shareholder make-up of those in industrial and financial sectors, and also in academia and research, we are perfectly placed to deliver progress,” stated the company.

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Glasgow’s SMS acquires heat pump specialist

Earlier this week, the European Network of Transmission System Operators for Electricity (ENTSO-E) hosted the first High-Level Electricity Grid Forum, of which EIT Innoenergy was a collaborator, during which the grid was placed high on the agenda as a strategic focus for future investments.

New investors in the round include Societe Generale, Santander CIB, PULSE – CMA CGM Energy Fund, Renault Group, Stena Recycling and NIIT.

Existing shareholders Siemens Financial Services, Schneider Electric, Capgemini, Volkswagen Group, ING, Koolen Industries, GROUPE IDEC and Engie were also among the strategic players.

Commenting on the announcement, Diego Pavia, CEO of EIT InnoEnergy, said: “New strategic players have joined InnoEnergy’s outstanding cap table, several shareholders have reinvested, and altogether we have secured sufficient fresh financial resources to double our on-going impact.

“The accelerated energy transition in Europe and in the world, and an increased re-industrialisation ambition in the western world are unique opportunities for InnoEnergy, its portfolio companies and our trusted ecosystem partners. We have geared up for the journey ahead.”

Details on individual investor contributions have not been disclosed.

Triple gas utility acquisition

Canada-based energy company Enbridge has acquired three US-based gas utilities to create what it is calling the largest natural gas utility franchise in the US.

Enbridge entered three separate agreements with Dominion Energy to acquire EOG, Questar and PSNC for the purchase, which totals $14 billion after deductions, including $4.6 billion of assumed debt.

Enbridge owns and operates pipelines throughout Canada and the US, transporting crude oil, natural gas and natural gas liquids. The company also generates renewable energy, touting a growing European offshore wind portfolio.

Upon the closings, Enbridge will add to its portfolio gas utility operations in Ohio, North Carolina, Utah, Idaho and Wyoming, representing a significant presence in the US utility sector.

The acquisitions will double the scale of the company’s gas utility business to approximately 22% of Enbridge’s total adjusted EBITDA and is hoped to balance the company’s asset mix evenly between natural gas and renewables, as well as liquids.

Enbridge states that following the closings, its gas utility business will be the largest by volume in North America with a combined rate base of over CDN$27 billion ($19.8 billion).

In a press release announcing the acquisition, Enbridge cites how “high-quality, utility cash flows from the gas utilities” will reduce its business risk.

Michele Harradence, president of GDS and executive vice-president at Enbridge, commented that the utilities, each being based in the US, offer strategic advantage when it comes to regulation, namely how they “operate in regions with very attractive regulatory regimes” while offering diverse, low-risk growth opportunities.

However, earlier this week, credit ratings agency Moody’s changed Enbridge’s outlook from stable to negative, a result of the acquisitions.

“The negative outlook on Enbridge is prompted by the company’s announcement that it would acquire US gas utilities… adding pressure to an already weak financial profile that we expect to persist following the transaction close,” said Gavin MacFarlane, Moody’s vice-president – senior credit officer.

“Although Enbridge’s business risk profile improves modestly with the transaction, it is not enough to offset ongoing pressure on the company’s financial profile.”

What are your thoughts on Shell‘s reported strategy to move away from the residential market? If the reports are correct it will be interesting to see who manages to acquire sonnen, which has only been growing.

For the latest finance and investment announcements coming out of the energy sector, make sure to follow Smart Energy Finances Weekly.

I will also be attending Bentley’s upcoming Going Digital Awards in Infrastructure in Singapore in October. Will I see you there?

Cheers,
Yusuf Latief
Content Producer
Smart Energy International

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Sweden, Denmark, Finland, Estonia, Spain, Norway, Luxembourg, Latvia, Italy, France, Malta, Slovenia and the Netherlands have reached the 80% penetration rate.

A further four countries, Portugal, Austria, Great Britain and Ireland, are progressing their rollouts, with three of them targeting 80% by 2024.

However, six countries, Belgium, Croatia, Poland, Slovakia, Lithuania and Hungary, have barely started theirs, while five, Bulgaria, Cyprus, Czechia, Germany and Greece, have very few or no smart meters.

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These are among the findings in the 2023 retail market study – based on 2022 data – from the Agency for the Cooperation of Energy Regulators (ACER) and the Council of European Energy Regulators (CEER).

The report, which is focussed largely on the energy crisis and the increases in energy prices in 2022 with recommendations based on the lessons from that, regrets that the 11 countries have barely started the smart metering process.

Their non-availability is a key barrier to consumers receiving regular and accurate metering data in a timely manner. Without that, they are unable to take advantage of the opportunities to respond to real-time price signals.

Moreover, for innovative market players, the lack of smart meter rollout can be a barrier to market entry and thus to competition. As new suppliers enter the market and offer real-time billing, consumers may respond by switching to other suppliers.

As far as switching – a key measure of consumer engagement – goes, for both electricity and gas the rates decreased in over half of member states in 2022 compared to previous years, although increasing in others. Possible reasons for these lower switching rates are related to pricing and the emergency measures taken during the energy crisis.

The other measure of consumer engagement reviewed in the report is energy communities. At this stage, the impact of energy communities is relatively small in terms of the number of initiatives, people involved and citizen-owned renewable capacity, but the interest of citizens in getting involved seems to have increased during the energy crisis.

In order to facilitate their development a clear and workable definition of energy communities and an enabling framework with the transposition of European rules in national legislations are needed.

Retail market structure

The report notes the heightened risk of the energy crisis triggered an uptick in the number of retail suppliers exiting the retail electricity market, reaching 62 due to financial problems in the residential market in 2021, up from eight in the previous year. However, the number dropped again to 23 in 2022, almost half of them in Spain.

Nevertheless, new suppliers have continued to enter the market with the number relatively high in countries where many suppliers exiting the market.

Similar patterns have been observed for supplier exits in the gas retail market.

From a supplier perspective, a key lesson learned from the energy crisis was to keep open lines of communication with all customers.

In response to increased prices, consumer complaints increased in 2022, primarily related – where data is available – to invoicing/billing and debt-collection and by almost half and double respectively compared to 2021.

While some energy companies’ customer services struggled to cope with the unexpectedly high volume of contacts, others found that engaging with their customers created opportunities to help consumers through the energy crisis, to the benefit of both the customer and the supplier.

Engaging with customers will therefore be key to the energy transition, the report states. Smart metering is one of the tools to facilitate this communication. Offering dynamic price contracts, in addition to hybrid or fixed price contracts, is another way of encouraging consumer participation from the demand side of the market.

Other findings in the report include the increasing share of electric vehicles in national new car registrations, although markedly different in different countries with the highest increases in Norway, Sweden and Denmark but the lowest in Cyprus, Slovakia and Czechia.

Another is the almost 40% increase in heat pump sales in 2022 compared with 2021, with consumers encouraged by the high energy prices.

The use of heat pumps will contribute to achieving the national and EU climate targets especially in the building sector. To meet these commitments, heat pump sales are expected to continue to grow.

Aiming to bring together industry leaders to raise awareness about the grids’ crucial role in the energy transition and develop input for EU-level policy discussions, the immense investment needed to reinforce the grid stood out as a key topic.

“Let’s make no mistake: investments in the grid will be needed,” said Damian Cortinas, chairman of the board of ENTSO-E, the European Network of Transmission System Operators for Electricity.

“Even if we (fully leverage) digitalisation and coordination with and between TSOs; even then we will need massive investments to connect new generation, for the solidarity between regions and countries of Europe and, in particular, for the sharing of flexibilities we will need for tomorrow.”

The grids forum is the latest initiative coming from European Associations to spotlight the state of the grid and the initiative needed to get it ready for a net-zero scenario.

Earlier this week, Eurelectric reported the need to prioritise grid expansion to meet Fit or 55 and REPowerEU goals, and the European distribution system operator (DSO) association E.DSO set out key pledges for the future grid with a call for investment to be high on the EU’s future agenda.

Investment first

According to Simson, one of the keynote speakers during the forum, although there are several key topics to tackle in readying the power grid, “the first one is investment.

“Europe needs to invest €584 billion ($624.6 billion) by 2030 to modernise and expand its grids. This is huge. But we can get there.”

Referencing an announcement from the European Investment Bank (EIB) back in July of additional financing of 50% (€15 billion ($16 billion)) to the REPowerEU Plan, Simson pointed out how there has been initiative to fast track financing.

“The proposed new electricity market reform will also make a difference. We expect it to change the remuneration mechanism for grid projects and boost anticipatory investments.”

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Regulation and interconnection

The second key issue to address, adds Simson, is that of regulatory barriers. Namely, the potential offered by breaking them down and fast tracking procedures.

Third was that of the importance of cross-border interconnection, as highlighted by the energy crisis.

Stated Simson: “Europe stands to gain much if we revitalise regional cooperation and make progress on cross-border interconnections.

“ENTSO-E’s latest 10-year network development plan 2022 shows how Europe needs to invest €6 billion ($6.4 billion) per year to 2040 on cross-border infrastructure; the 15% interconnection target is not just a benchmark – it is the best way to bolster our security of supply and competitiveness.”

Digitalisation and industrialisation

As the fourth point, Simson emphasized that we need to have more efficient grids by digitalising our energy system and investing in smart grids.

“With increasing shares of solar and wind, it’s becoming more important to match demand and supply. This requires real time data and pricing, allowing consumers, business and smart energy appliances to respond to the system’s needs.”

The fifth and final point that Simson highlighted is that of industrial and commercial opportunities for the grid.

“We all read the reports of project delayed or suspended because waiting times for components go beyond 2030, or because of rising costs.

“But let’s not forget that the three largest cable manufacturers in the world are based here in Europe. If we are to boost out industrial capacity, expand the pool of skilled labour, improve supply chain, all of this would turn into jobs , growth and opportunities.”

Simson here referred to the Net Zero Industry Act, one of many tabled back in March 2023 that aim to drive Europe’s prowess within the energy transition by, among other points, boosting European supply chains and upskilling the workforce.

Further conclusions to each of the discussed topics will be released in the coming weeks.

This is according to findings from data and analytics company GlobalData, which projects a compound annual growth rate (CAGR) of 3.54% for the market from now to 2027.

According to the company’s report Switchgears for Power Transmission, Market Size, Share and Trends Analysis by Technology, Installed Capacity, Generation, Key Players and Forecast, 2022–2027, while the market has been seen growth across regions, market drivers are context-specific.

For example, states the report, within the growing economies of the Asia-Pacific and Middle East (EMEA) regions, the market’s growth is being propelled by the increasing demand for electricity, with capacity addition in the generation and transmission sectors.

On the other hand, in the Americas and Europe, the report finds the replacement of ageing grid infrastructure, the shift to renewable energy, grid reliability issues, improved policy and investment decisions, as well as technology innovations as key factors.

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EMEA

Overall, states GlobalData, the EMEA region was found to be the leader in the market in 2022, with a share of 44.60% and a forecast to grow to 48.24% by 2027, higher than the growth expected in all other regions.

According to GlobalData, the high voltage (HV) switchgear market in the EMEA region was estimated to be $11.16 billion in 2022 and is projected to reach $14.63 billion, registering a CAGR of 5.03% over 2023-27.

An additional driver, states the research, was an observed economic boom for Middle Eastern countries, leading to an increased demand for power.

Commenting on the report’s findings was GlobalData senior power analyst Bhavana Sri Pullagura, who stated how “the growing demand for electricity is giving rise to the need for new power plants, particularly those modes of generation that have minimal impact on the environment.”

With this, stated Pullagura, countries have started looking towards eliminating barriers to deployment of renewable technologies and gas-based generation.

“The falling capital cost and low gas prices also resulted in increased development of renewables and gas power plants. This contributed to the growth of the switchgear market, which is expected to continue as countries seek to increase the share of renewables and gas in their generation mix.”

Asia-Pacific

According to the report, in 2022, Asia-Pacific’s market value stood at $10.77 billion, accounting for a share of 43.05% in the global HV switchgear market. The HV switchgear market in the Americas is expected to reach $3.11 billion by 2027, as the grid requires upgrades to replace aging assets and to accommodate the increasing sources of renewable energy.

China, one of the fastest-growing economies with the largest fleet of transmission substations, topped the report’s global HV switchgear market in 2022 with a value of $7.73 billion, accounting for a 30.0% share. The country is expected to continue its leadership during the forecast period, reaching $9.19 billion in 2027.

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Bhavana Sri added: “The need to build transmission infrastructure to deliver power from renewable sources in remote regions, the increasing domestic demand for electricity, large-scale renewable energy deployment, the projected growth in the gross domestic product and rural electrification initiatives are some of the major factors aiding the growth of its HV switchgear market in China.

“The country is the world leader in ultra-high-voltage transmission, having made considerable investments in the development of transmission systems of voltage level of 765kv and above.”

The other major countries in the Asia-Pacific gas-insulated switchgear market, states GlobalData’s research, include India and Japan. India ranks third after China and the US in the global HV switchgear market, with a value of $1.15 billion in 2022 and a share of 4.60%.

“GlobalData believes that policies established to address environmental challenges and capitalise on market opportunities offered by technologies would notably impact the switchgear market by the end of the forecast period,” states Bhavana Sri.

The integration, believed to be a first for quantum-based cyber protection in smart meters, sees quantum computing-hardened encryption keys integrated into all Honeywell’s smart meters for gas, water and electricity.

This enhanced security is aimed to set a new benchmark for protection against data breaches and to help ensure the uninterrupted operation of the utilities infrastructure.

“By integrating Quantinuum’s encryption technology into our smart meters, we’re advancing data security for our customers and shaping the dialogue on how the utility industries should approach cybersecurity in the quantum era,” says Hamed Heyhat, President of Smart Energy and Thermal Solutions at Honeywell.

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“This integration underscores the necessity for continuous innovation to stay ahead of the evolving threat landscape. It is a level of protection that is imperative in our increasingly digital and interconnected world.”

Quantinuum’s Quantum Origin generates keys through quantum computing-enhanced randomness – a feature of the quantum world – which makes them unpredictable and thereby able to significantly enhance the data security.

Specifically a quantum cryptographic seed is generated on a quantum computer, which is then verified for strength and the keys are generated.

Tony Uttley, President and COO of Quantinuum, comments that robust cybersecurity requires a multifaceted approach, taking advantage of the latest technologies.

“Our work with Honeywell demonstrates the importance of using the power of today’s quantum computers to create a more resilient cyber infrastructure to better protect customers.”

Quantum Origin is designed for both devices and infrastructure, with keys generated directly into devices or on demand via the cloud.

The smart meter products with Quantum Origin from Honeywell are available now to customers in North America and Europe.

In a new study on the region’s electricity market design, Eurelectric states that with around 70% of the planned new renewable capacity being connected to the distribution grids, these require reinforcement and expansion.

But for efficient and timely connection, the way the grids are developed needs to change from an essentially reactive approach to a ‘build-for-the-future’ approach that includes inter alia anticipatory investments.

“Getting our electricity networks fit for net zero should be a top priority in the coming years, both at EU and national level,” says Kristian Ruby, Secretary General of Eurelectric.

“This requires a new mindset among regulators and legislators. One that anticipates Europe’s capacity needs to integrate more renewable projects, and one that accommodates unprecedented electrification of transport, buildings and industry to match the speed and scale needed for Europe’s energy transition.”

The REPowerEU plan anticipates around 50 to 60 million heat pumps, 65 to 70 million electric vehicles (EVs) and over 600GW of additional renewable capacity by 2030.

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A scarcity of grid capacity translates into longer waits for connections, more congested areas and higher costs for network users.

In its earlier ‘Decarbonisation Speedways’ study, Eurelectric found that the EU currently invests €23 billion (US$25 billion) per year in grid infrastructure. However, the investment in distribution grids should reach no less than €38 billion per year until 2030 and up to €100 billion per year until 2050 to deliver on the decarbonisation’s agenda.

Eurelectric proposes in its report that the distribution networks should be planned at least 5 years ahead, with the option of reaching 10 years and with a 2050 horizon projection.

Further regulators must be flexible on DSO investment instruments, removing regulatory obstacles and adopting output-based remuneration taking into account both capex and opex.

EU policies and funds also must promote investments in the physical dimensioning of the grids. In this connection, dynamic line rating is one of the basic means to expand capacity.

Likewise, significant digitalisation efforts are needed and should be incentivised for grid management and forecasting and flexibility should be promoted, with local production and consumption stimulated.

A key for infrastructure development is permitting and Eurelectric urges for a “dedicated and permanently simplified procedure” for grid development, including a possible ‘one-stop-shop’ concept for a single permit for a generation project and the associated grid expansion.

Underlying much of these actions is the need for accurate information and Eurelectric calls for “robust data-sharing mechanisms” among the various players.

Through the agreement between the clean tech major and the British water holdings company, the EnergyIP MDM X platform will connect the meter points, aiming to enhance the Group’s ability to detect and reduce household water leaks.

The water utility is undergoing a major rollout of smart meters, which report data back to the cloud on an hourly basis.

Siemens’ Software-as-a-Service (SaaS) solution will allow the utility, which services 4.5 million people in the North East of England and in the South East as Essex & Suffolk Water, to analyse the data from the water meters to identify household consumption anomalies and alert customers of potential leaks on their properties.

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Siemens collaborated with NWG’s team to design, develop, test and launch the meter data management SaaS, which is powered by the technology company’s EnergyIP software.

According to Siemens, it represents the largest solution of its kind implemented by the company for the water industry in Europe, as well as its largest deployment of grid software to date.

Gary Adams, head of smart transformation at NWG, said: “The EnergyIP MDM implementation is a critical cornerstone in our smart metering journey, allowing us to effectively manage the large volumes of metering data we will receive and to drive efficient operational activity for both our customers and our wider business providing access to granular smart data at the click of a button.”

The system will ultimately help NWG to meet UK water regulator Ofwat’s targets for reducing leakages and per capita consumption.

EnergyIP MDM X for Water is part of Siemens Xcelerator, the company’s digital business platform.

Backed by Innovate UK, the Department for Science, Innovation and Technology, and government teams in India, and delivered by Energy Systems Catapult in partnership with the Indian Institute for Science (IISc), ITES will support small and medium enterprises (SMEs) to test, fund and fast-track their innovations to market that help decarbonise transport in India and the UK.

ITES will offer a ‘soft-landing’ for the SMEs, helping to safely develop, test and export solutions that help decarbonise transport. The collaboration will also help SMEs tackle scalability with go-to-market support and access to potential clients, funders and investment.

This first cohort of 20 UK-based SMEs includes teams in the fields of intelligent electricity system services, battery management, charging systems, energy storage, fleet optimisation, hydrogen and rail.

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The different working areas and their respective SMEs include:

Intelligent electricity system Services

• Flock Energy, which uses machine learning to transform energy usage in factories and help them digitalise their operations. The company has developed proprietary algorithms that optimise energy consumption, improving efficiency and productivity.
  
• Terranow, which uses the potential of generative AI to unlock optimal efficiency in the generation and use of energy through focused solutions for forecasting, control and coordination.

Battery recycling and management

• Aceleron Energy, which develops advanced lithium batteries, aiming to accelerate the global shift to cleaner, more renewable energy and to drive sustainable battery technology.
  
• Faraday Battery Limited, which manufactures battery-packs up to 1MW scale for electric vehicles, including tractors, vans, buses and trucks. vehicle, it significantly reduces the lifecycle cost of the electric bus/truck.
  
• Nexmu, which focuses primarily on electric mobility and energy storage. The Nexmu team has integrated its battery management system and related capabilities in the electric powertrain into a single cloud-based platform.

Charging systems

• char.gy, which manufactures amd operatres charging infrastructure, funding, installing, operating and maintaining EV charge points for private landlords and local authorities for their residents who do not have off-street parking.
  
• Entrust Microgrid, chich specialises in smart microgrid systems that maximise user benefits from embedded solar PV, energy storage system, EV charger and other smart energy appliances, and provide the grid with flexibility.
  
• Petalite, which is a second-generation EV charging company that aims to solve the challenges impeding the roll-out of EV charging infrastructure.
  
• [ui!]uk urban integrated ltd, which is an IT consultancy advising local authorities, cities and metropolitan regions in their strategic planning and in the implementation and operation of smart city infrastructures and e-mobility solutions, such as charge point management systems and mobility service provider apps.
  
• Vertical Solar, which is a renewables developer aiming to bring to market new products that remove the traditional constraints associated with solar deployments.
  
• Voltempo, which develops ultra-high power EV charging hubs for heavy vehicle fleets and public service stations.

Energy storage and delivery

• Energineering LTD, which is a consultancy in the realm of industrial energy efficiency and project development. The last five years have seen the team concentrate on developing innovative energy storage solutions, including its patented MECHAPRES system, which uses a combination of reversible heat pumping and Composite Phase Change Material, latent thermal storage to support the needs of decentralised microgrids and DC EV Charging stations.
  
• LiNa Energy, which is developing and commercialising low-cost, solid-state sodium batteries as a safer, more sustainable alternative to lithium-ion. LiNa’s innovation is based on a novel sodium-metal-chloride planar cell, which they state unlocks the high power/energy density potential of established sodium battery chemistry.
  
• PowerUp, which provides an Energy as a Service model, replacing fossil fuel generators with battery PowerStations, using AI algorithms to predict battery behaviours and facilitate just-in-time swapping with renewable energy-charged replacements.

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Fleet optimisation

• Flexible Power Systems, which aims to address the increased complexity, risks and cost arising from EV adoption.
  
  The company’s platform provides automated EV fleet and charger management for van, bus, truck or mixed fleets that integrates data from across the business for a view of fleet operations. Part of what this enables, states the company, is the management of power constraints to avoid expensive grid upgrades.

Rail

• Riding Sunbeams, which decarbonises rail traction networks through the development and connection of unsubsidised, direct-wire renewable energy supply.
  
  Riding Sunbeams is now working to develop and demonstrate the required technology to connect solar power and line-side energy storage to feed the Alternating-Current (AC), overhead line railways that make up most of the world’s electrified rail networks.

Hydrogen

• AqSorption, which builds renewable energy systems, concentrating on biogas and combined heat and power plants. Following a series of enhancements to its gasification technology, AqSorption has successfully adapted to move into production of hydrogen.
  
  
• Innervated Vehicle Engineering (IVe), which transforms diesel vans into hydrogen fuel cell vans, offering an alternative to diesel.
  
  
• JET Engineering Services, which works with and on behalf of customers to deliver solutions to technical engineering problems. Following a recent contract award to deliver a hydrogen production system on the subcontinent, and changing priorities in global markets, the company took a strategic decision to redirect its efforts into the green hydrogen sector, and has embarked on a programme to develop a range of projects and products to support this.
  
  
• Logan Energy, which specialises in the delivery of integrated engineering solutions incorporating hydrogen technologies for production through to refuelling.
  
  The team offers a full turnkey service, from project inception & feasibility, design development, manufacturing, installation, and operation and maintenance.
  
  Logan Energy has designed, built, and installed hydrogen production and refuelling stations, and are currently constructing further stations for buses, vans, passenger vehicles, and heavy-duty vehicles.

The 20 SMEs will have access to a range of acceleration support – from start-up mentoring and incubation services, to market research and real-world pilots with Indian businesses that help prove new products on the ground.

Paul Jordan, business leader for innovator support & international at Energy Systems Catapult, commented: “It’s a real pleasure to announce such a strong cohort of SMEs to join us at the start of this major innovation initiative between the UK and India.

“They represent some of the highest-priority innovations needed to tackle transport decarbonisation – from cutting-edge hydrogen, rail, and fleet solutions, to battery storage and management, and other technologies and services that can enable an electric vehicle-ready infrastructure.

“By helping these UK innovators to collaborate, commercialise and trial their solutions in the world’s fifth biggest economy, we hope to both turbocharge decarbonisation efforts and help unleash the economic potential that innovation offers.”

The Innovating for Transport and Energy Systems initiative was launched in May this year.

The 50MW project, which will be installed at Neilston Greener Grid Park in Renfrewshire, Scotland, is intended to support the National Grid Energy System Operator (NGESO) in ensuring system stability as more renewable energy sources come online.

Unlike other operational energy storage systems in the UK, Statkraft’s project will be able to provide inertia and short-circuit power to the grid to keep it stable. Those services, states the partners, are critical to ensuring energy security and affordability as the energy transition advances.

The project will be delivered as part of the NOA Stability Pathfinder, a programme seeking new ways of increasing transmission network stability as synchronous fossil fuel generators are phased out in the UK, with the last coal power stations scheduled to close by 2024.

Lloyd Godwin, principal project manager at Statkraft commented: “We are pleased to be working with Fluence who will be providing the technology for our Neilston Greener Grid Park project, which has recently started construction.

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“The project will provide an essential service to stabilise the power grid and allow more renewable energy to be transmitted through the network, without relying on coal and gas-fired power stations. This means fewer harmful emissions and lower bills for consumers, because renewable energy is cheaper.”

For Fluence, this will be the 27th project contracted or delivered in the UK and Ireland, with a total company portfolio in those markets exceeding 1.4GWh, including the first-ever battery-based energy storage project in the Irish market, also delivered for Statkraft.

“Building on Fluence’s history in shaping the British energy storage market, we are delighted to partner with Statkraft, a pioneer in deploying grid stability services in the country,” stated Brian Perusse, managing director of Fluence Energy UK.

“We look forward to delivering a battery-based energy storage system critical to increasing grid stability and enabling the integration of more low-cost renewable generation.”

In total, Fluence has delivered or contracted more than 850MWh projects of this type globally.

In March of this year, Fluence launched Ultrastack, an advanced energy storage product designed to address the complex requirements of transmission and distribution networks.

Statkraft’s Neilston Greener Grid Park will also use some of the functionalities of Ultrastack, benefiting from new technological solutions.

The solution, named Synaps (Synchronous Analysis and Protection System), is for fault detection, classification and location using AI and machine learning to reduce faults on the LV network.

It works by using sensors at a substation and feeder level to detect anomalies in grid performance and via a ‘digital twin’ of the network pinpoints the probable location of intermittent faults.

With the solution, which was developed with UK government network innovation support in partnership with Scottish & Southern Electricity Networks and UK Power Networks, the time and cost of fault detection could be cut by up to two-thirds.

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Early results from the solution show it can identify the probability of future failure by >95% and location accuracy >3 m, including spurs.

Paul Beck, Gridkey and Innovation Director at Lucy Electric, comments that detecting and repairing underground intermittent faults is often complex and costly.

“This exciting technology, when coupled with our existing GridKey monitoring system, allows improved fault management specifically the ability to carry out preventative maintenance before larger faults occur, delivering significant savings and reducing customer outages.”

Stewart Reid, Head of Future Networks at Scottish and Southern Electricity Networks, where Synaps is monitoring 16 circuits, says the solution is “already improving our service and benefitting our customers through a more reliable network at lower cost.”

Chino Atako, Senior Asset Engineer at UK Power Networks, which has seven circuits being monitored, says that learnings for so far indicate its potential to deliver significant ‘customer interruption’ and ‘customer minutes lost’ benefits.

The AI solution uses the ‘digital twin’ to simulate faults in millions of scenarios, with machine learning technology then comparing this to the measured network data captured when there is a current transient.

This is considered a highly effective way of locating cable faults as it works not just with large transients where there is an immediate chance of the fuse operating, but also with very small transients typical of the start of a cable fault.

Synaps is now being provided by Lucy Electric under the product name COPPsystem (Cable outage prediction and prevention).

Meanwhile trials are continuing to make it progressively more accurate and to get more experience of different cable types and network architectures.

In the future the plan is to extend its capability to the MV and HV networks, in particular offshore applications, where submarine cable faults account for up to 80% of insurance claims by operators.

In a new document, E.DSO states that a “forward-looking understanding of the needed investments and necessary reforms to the current reference legislative and regulatory frameworks” is needed as part of the “bold action” towards achieving net zero emissions by 2050.

E.DSO members account for a very significant part of the current and future investments in European power grids.

But the role of DSOs is constantly evolving and will soon become almost extremely complex, requiring radical change in the way they function and operate with the rapid growth with the massive influx of renewables, change in customer behaviours and rapid electrification.

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With time of the essence, significant leaps are required rather than piecemeal steps and must begin by empowering the distribution networks, where over 85% of the renewables will be connected.

E.DSO sets out four key pledges for the future grid, with the aim “to inspire policymakers, industry stakeholders and customers to prioritise grid modernisation, enabling a sustainable future for Europe”.

1. The role of the DSOs must not be overlooked, as they have been relatively until now primarily from an industrial perspective rather than solely from a regulatory standpoint.

E.DSO advocates for the establishment of regular dialogue between policymakers and the leading DSOs to enable a continuous exchange of ideas and expertise to inform policy decisions and ensure alignment with the real needs of the distribution grid, as well as inclusion of E.DSO in high-level policy discussions related to the distribution grid and investments.

2. Grid investments shall be high on the EU agenda, with distribution grids the backbone of the digital and energy transition.

E.DSO advocates for enhanced relationships between the national regulatory authorities and DSOs, the creation of regulatory incentives that reward DSOs for making anticipatory investments in grid infrastructure and the implementation of policies that encourage electrification in sectors like transportation and heating.

3. Grid technologies and manufacturing capabilities should be European, reflecting their vital role in the reinforcement and expansion of the region’s distribution level infrastructure.

E.DSO advocates for support and incentives for companies to establish development and manufacturing capabilities in Europe and the establishment of a dedicated financial framework to encourage these activities.

4. The workforce in the DSO industry requires rebuilding, with the looming challenge of the impending retirement wave over the next decade.

E.DSO advocates for the introduction of target investments to address workforce challenges, the establishment of industry-recognised certifications and standards for clean energy-related skills and the establishing of a Net-Zero Industry Academy to equip individuals and industries with the necessary knowledge and skills.

The Dutch companies are calling it the first ‘capacity restriction’ contract, which will see Eneco gear electricity supply from a wind project in Farmsum to meet the load on the power grid, a technique to avoid peak demand periods known as congestion management.

During peak moments, Eneco will temporarily reduce the production of this wind energy and Enexis will pay a fee.

The wind farm in question is Farmsum, located in the Dutch province of Groningen, which is connected to one of Enexis’s medium-voltage stations in Weiwerd.

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The station’s power grid, states Eneco, has virtually no room left for more capacity and through the contract Eneco will make the wind farm available to produce less electricity during peak moments, freeing up room on the grid.

This is the first time either Enexis or Eneco has concluded this type of contract, which has been signed at a time in the Netherlands when increasingly flexible means of managing consumption are being used to balance an at-capacity grid.

The wind farm has a total capacity of approximately 25MW; Eneco will make 10MW of flexible capacity available to Enexis to open grid capacity for connecting roughly 30,000 solar panels.

The contract takes effect on 1 September 2023. The contract has no fixed end date; it will remain in place until the local power grid has been upgraded.

Commenting on the contract in a release was Lucien Wiegers, director of Eneco’s trading division EET, who stated: “We are pleased to have secured this first deal with Enexis, and we expect to sign several more of these contracts, not only for our own wind and solar farms, but also for farms that we manage for others.”

Added Karin Mathijssen, director of large business customers at Enexis: “We are transitioning to an energy system where these types of flexible contracts are becoming increasingly important. At the same time, this is a new concept – not only for us, but also for our customers.

“I am confident that we will sign more of these types of contracts in the near future. To serve as many of the customers on the waiting list as possible, Enexis will continue to look for parties that can supply flexible capacity and that follow Eneco’s excellent example.

The Shell Energy businesses provide domestic gas, power and broadband services. The move comes after a competitive process run by Shell and includes 1.4 million household energy customers, equating to 2.5 million meter points, and 500,000 broadband customers.

The deal was signed with Shell Petroleum subsidiary Impello Limited and grows energy supplier Octopus to nearly 6.5 million household customers in the UK, now equating to over 11 million meter points.

Octopus’ customer base in Germany will grow to almost 300,000.

Shell’s retail exit

The sale follows the announcement in June from energy giant Shell about an exit from the home energy retail business in the UK, the Netherlands and Germany following a strategic review of market conditions.

The company’s Dutch operations are winding down and in the process of transition.

“This agreement follows the announcement during our Capital Markets Day to divest our home energy retail business in Europe,” said Steve Hill, executive vice president for Shell Energy.

“To drive performance, discipline and simplification, we are prioritising countries, projects, and routes to market where we can deliver the most value. We will work closely with Octopus to ensure a seamless transition and continued high standards of customer service.”

Other home energy supply markets for Shell in the USA and Australia, where there is integrated value, as well as Shell’s wholesale and small to medium enterprise (SME) customer supply businesses under the Shell Energy brand, are not included in this sales agreement.

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Significant growth for Octopus Energy

Octopus Energy is headquartered in the UK and operates in 15 countries, with significant businesses in energy retail, generation, technology and electric vehicles.

The company has to date received over $1 billion in investment from global giants, including investment funds, pension funds and large energy companies.

As part of the agreement, Shell and Octopus Energy have also signed a memorandum of understanding to explore a potential international partnership, planning to collaborate in electric vehicle charging for customers in their respective Shell Recharge and Octopus Electroverse companies.

Options will be explored for possible joint promotions, brand activations and other activities across the EV value chain.

According to Octopus Energy, an analysis by management consultancy Bain & Company attributes the company with the highest approval rating of any energy company in the UK.

Octopus Energy has stated the acquisition will have “a smooth transition and no disruption to customer energy supply, all Shell energy and broadband customers will be contacted about the next steps following regulatory approval.”

The deal is expected to complete in the fourth quarter of 2023.

Also on the radar are stats from BNEF showing how, in 2022, clean energy activities generated at least $2.56 trillion globally and the latest green bond from E.ON valued at a total of €1.5 billion ($1.6 billion).

Energy trading optimised by grid physics

US-based SESCO Enterprises has announced the use of a mathematical optimisation model to simulate market dynamics based on the transmission grid.

Namely, the power trader has signed on with Gurobi Optimisation LLC, which develops decision intelligence tech, to support their price optimisation.

As a trading firm in the energy markets, SESCO’s goal is to simulate the condition of the national grid, as well as consumer demand for the electricity it delivers.

These outputs simulate energy market dynamics and become inputs to the models SESCO has built to determine bid pricing at auction.

“The unique thing about electricity markets is that prices aren’t really determined by people buying and selling in an order book. Next-day prices are determined at the ISO (Independent System Operator) auction, where clearing prices are often set by the outcome of an optimisation solve – typically using tools like Gurobi,” explains Dylan Modesitt, chief investment officer of SESCO.

“So using the partial information we have, we try to determine what the optimal pricing would be.”

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SESCO’s business involves speculating on next-day electricity prices, as well as the longer-term forward markets for trading power.

“Our trading expertise is about the congestion component of price, which is the kind of pricing differential that arises from transmission lines being saturated at their limit,” explained Modesitt.

“And when transmission lines are saturated to some local limit, loss is going to emit as heat. So to avoid any kind of catastrophic failure, price signals are sent on either side of that transmission line. It’s a lot of demand speculation, and it requires an understanding of the actual physics of the grid.”

SESCO began building out mathematical models and used them to solve toy problems with another commercial solver.

However, states the trader, due to several million constraints and variables, either the incumbent solver was unable to find feasible solutions, or each solve simply took too long to be useful.

Hence the turn to Gurobi, which they state provides a solution that can capture the complex effects of the physical grid state as it impacts market outcomes.

Specifically, the advanced optimisation techniques used by Gurobi’s solver, states SESCO, improve the pricing precision and capital efficiency of their trading approach.

Listed global firms hit $2.56 trillion in clean energy revenues

According to analysis from BloombergNEF (BNEF), in 2022 clean energy activities generated at least $2.56 trillion globally, with power utilities and renewable manufacturers accounting for two-thirds of the figure.

The figure forms 2.6% of GDP, according to BNEF’s Clean Energy Exposure Ratings, which identified and rated over 8,000 listed companies with revenue exposure to clean energy activities, from over 50,000 assessed.

Listed electric utilities like EDF, Enel and E.ON accounted for $1.06 trillion (42% of the total) in clean energy revenues, followed by renewable energy manufacturers and developers including CATL, Vestas and Trina Solar, contributing $628 billion (25%) in clean energy revenues in 2022.

“While automakers like Volkswagen and Toyota are among the biggest earners in the rankings, their exposure remains low and so the auto industry only contributes $370 billion to the total,” said Mike Daly, lead author of the report.

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E.ON issues €1.5 billion in green bonds

E.ON has successfully issued two bond tranches with a combined volume of €1.5 billion ($1.6 billion), backed by a combined peak orderbook of €4.3 billion ($4.7 billion).

Both tranches value €750 million ($815.6 million) each, with the first maturing in March 2029 and the second in August 2033.

E.ON’s CFO Marc Spieker commented on the green bonds: “The high demand from investors underlines again that we are on the right track with our strategy, which is focused on sustainability, digitalisation and growth.

“E.ON is determined to drive forward the energy transition in Europe. We want to invest a total of €33 billion ($35.9 billion) in the energy transition by 2027. Green bonds are an important financing instrument to do this, and we will continue to use them for our financing in the future.”

According to E.ON, a positive market environment has already allowed them to prefund financing needs for the upcoming 2024 fiscal year, while 2023 funding needs were already covered successfully by a €1.8 billion ($2 billion) bond issuance in January.

The proceeds of this green bonds will thus be used to finance and/or refinance Eligible Green Projects as defined in E.ON’s Green Bond Framework.

Bank of America Securities, Deutsche Bank, Natwest Markets and Unicredit served as active bookrunners in the transaction.

What are some of the strategies you’ve seen companies use to improve their energy trading and analytics? Are there any you’d like to see covered? Let me know.

For the latest finance and investment news coming from the energy sector, make sure to follow Smart Energy Finances Weekly.

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Yusuf Latief
Content Producer
Smart Energy International

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Namely, all parties involved in the deployment of charging infrastructure, including governments, charge point operators (CPOs), transmission and distribution system operators (TSOs/DSOs), need to start planning as soon as possible to meet the charging needs of battery electric trucks.

According to the Federation’s survey, Grid Readiness for HDV Charging, this will involve:

• Analysing future charging demand and where it will occur;
  
• Creating awareness of grid operators of what this future demand would mean for their grid planning;
  
• Accelerating administrative and permitting procedures;
  
• Breaking up silo thinking by bringing all stakeholders involved together.

According to T&E, the regulation on the deployment of alternative fuels infrastructure (AFIR) obliges EU member states to ensure the deployment of recharging pools dedicated to heavy-duty EVs.

However, these targets have raised questions addressing the suitability of existing distribution networks to support its development, as well as of the required actions to make network connections available.

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Key findings

According to T&E’s survey, the following key findings were derived regarding the readiness of the European distribution network, in mind of the targets set by AFIR:

• AFIR ambition:

The AFIR targets specify two metrics: timelines and distance as well as capacity.

The timelines of the targets, in general, were perceived as the more problematic metric.

Regarding a 2025 deadline for heavy-duty infrastructure, given the short remaining time, even at sites where sufficient network capacity is available, timely implementation will be challenging, states the Federation.

If any permitting procedures are required, implementation seems more unrealistic, necessitating a delay to 2027 or 2028.

However, for 2030, the general feedback was that the volumes specified in the proposals are challenging but feasible. Nevertheless, at least in certain regions, network development is required to meet the AFIR targets.

• Planning and permitting

According to the survey’s findings, the challenging character of the proposed timelines is even more evident as usual periods for network planning and permitting in several EU member states are very long.

If high voltage (HV) lines are included, procedures may take more than a decade, hence planning periods may already now conflict with 2030 targets.

Additionally, existing legal frameworks do not allow an acceleration of permitting processes.

From this perspective, states the survey, the time until AFIR enters into force is even more problematic.

• DSO awareness and focus

DSOs, states T&E, will only be able to successfully tackle the challenges related to AFIR targets with an anticipating and proactive approach, sufficient resources and respective corporate cultures.

The report states how specific national policy instruments incentivising DSOs may also be needed, at least in a transitional period until 2030.

However, incentives should not focus only on charging infrastructure for heavy-duty EVs but rather stimulate provision of connections in general, i.e. also for renewables.

While the distribution network perspective is important, T&E adds that requirements need to be set by transport demand and patterns.

Involving DSOs in the identification of potential sites, they state, will likely accelerate grid connection and reduce costs in some cases.

• Studies needed

Nearly all stakeholders mentioned ongoing studies matching scenarios for charging hubs with network development needs.

Lessons learned from national studies should thus be compiled at the EU level, states the survey, and findings should be disseminated among involved stakeholders as well as among different member states.

This would also minimise the risk of supply gaps in border regions and for transit routes.

• Coordination of Trans-European Transport Network (TEN-T) and distribution network planning

The report states how, at EU and national levels, planning of motorway infrastructure and distribution networks, so far, is not coordinated. This also applies to EU funding, although there is potential for improvement.

According to T&E’s report, ambitious policy targets correctly reflect the expected growth in demand for charging infrastructure.

However, political targets should be in line with actual charging needs. This helps DSOs and other stakeholders plan strategically and communicate their needs and challenges to policymakers.

The Federation adds how, although there will be charging hubs which are crucial for geographic coverage, they will not be economically viable due to low customer intensity and thus low utilisation.

These require special attention in planning but even more in implementation and suitable policy instruments, such as subsidies and service obligations, which will need to be applied.

The implementation plan is comprised of 19 ‘priority project concepts’ (PPC) that should be delivered in the period starting in 2024 as well as a further 13 PPCs that should get underway in the following year.

These PPCs, which are categorised under the previously established ‘high-level use cases’, are considered as “families of projects”. They are not intended as specifically defined individual projects, that would be the task of project funding applicants.

The implementation plan is intended to detail the most urgent R&I needs that should to be tackled through the European Commission and national work programmes within the period towards delivering the 2050 neutral carbon energy system.

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With extensive electrification combined with significant energy efficiency improvements and CO2 reductions in all sectors, this will require inter alia the massive use of renewables and smart grids technologies as well as sector coupling of all energy carriers via storage and conversion technologies.

The PPCs for 2025+ are as follows:

HLUC 1 – Optimal cross sector integration and grid scale storage

• Integrating hydrogen and CO2-neutral gases
• Regulatory framework for cross sector integration.

HLUC 2 – Market-driven TSO-DSO-system user interactions

• Develop a digital twin of the European electricity grid
• Viable business cases through market mechanisms and incentives
• Governance for TSO, DSO and system users.

HLUC 3 – Pan European Wholesale Markets, Regional and Local Markets

• Validation of new market concepts.

HLUC 4 – Massive RES penetration into the transmission and distribution grid

• Well-functioning markets for a RES based energy system
• Policies and governance for a RES based energy system.

HLUC 5 – One stop shop and digital technologies for market participation of consumers (citizens) at the centre

• Data spaces
• Building skills needed for developers and users of the energy system to accelerate its transition through its digitalisation
• Service management and operations
• Sharing IT infrastructure investments.

HLUC 7 – Enhance system supervision and control including cybersecurity

• Grid operator of the future
• Grid field workforce of the future
• Human machine interface
• Cybersecurity of energy networks.

HLUC 8 – Transportation integration and storage

• Integrated planning of energy and transport sectors
• Adapting policy and market for seamless cost-effective merging of transport and energy sectors.

The implementation plan gives a description of each of the priority project concepts and their budgetary requirements.

Three further R&I Implementation plans are planned to cover all the time periods until 2030.

The flexibility, or capacity-limiting, contracts are being used to coordinate electricity supply for operations of a construction project for the emission-free dyke improvement between Tiel and Waardenburg in the Netherlands, on behalf of the Rivierenland Water Board.

The WattHub, completed earlier this year in July, provides electricity for more than 40 construction vehicles and trucks simultaneously.

But in the Netherlands, grid reliability has been a recurring issue; bottlenecks have been a consistent concern with the latest announced by Liander in August across three cities.

To maintain continuous supply to the hub, the Dutch utility has drawn up capacity-limiting contracts for wind supplier Betuwewind and solar developer Avri Solar BV, whereby electricity feed-in from the companies is flexibly coordinated.

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Reserve supply for continuous charging

A fast-charging plaza in Geldermalsen, the WattHub currently relies on energy from Betuwewind’s wind supply, with Avri Solar’s supply earmarked for the future.

According to Liander, the plaza’s batteries need to be full before the working day starts; at night, when space is usually available on the electricity grid, Betuwewind now uses electricity from the grid in case there is insufficient wind.

For other times, when scarcity remains, through the capacity-limiting contract, Liander can call on entrepreneurs to temporarily reduce the feed-in of electricity.

This creates more space on the grid, and the grid operator can realise additional connections for the wind and solar parks.

For example, states Liander, Betuwewind was instructed to feed back two megawatts less power for an hour to prevent overloading on the grid. Betuwewind duly complied and any loss of income was compensated.

In this way, the share of sustainable energy in the region is growing, they state, and bottlenecks can be prevented.

The initiative is the latest in the country to enhance grid management through flexibility.

Earlier this year in June, Dutch Minister for Climate and Energy Policy of the Netherlands Rob Jetten announced intention to appoint a flexibility coordinator, signalling its importance for the country’s grid system going forward.

According to Liander, this project is yet another sign that flexibility of energy demand will be necessary to make optimal use of the grid.