100% Green Electrical Energy for the Faroes by 2030 Lessons for - PowerPoint PPT Presentation

” A small country with big ideas” Monica Araya 2016 100% Green Electrical Energy for the Faroes by 2030 Lessons for Small Islands Terji Nielsen R&D Manager Dipl.Ing. E.E. (Hons) MBA Renewables

Faroe Islands 10/25/2016 2

Faroe Islands • General data: – 18 islands (17 are populated) – 50.000 inhabitants – Area of 1.399 km 2 – Main export: Fish and fish products 10/25/2016 3

Electrical Company SEV • Company Structure: – Non-profit, founded 1 st October 1946 – 100 % owned by all Faroese municipalities – Monopoly on grid operation (transmission & MV/LV distribution) – “ De facto ” monopoly on production (98%) – Joint and several price structure – Vertically Integrated Company – “Micro isolated system” in EU terms ( < 500 GWh ) • Directive 2009/72 – Derogation from relevant provisions in different chapters about unbundling, third party access etc. 10/25/2016 4

Energy Mix 1954 - 2015 325 300 275 250 225 200 GWh 175 150 125 100 75 50 25 0 Thermal Hydro Wind Source: SEV 10/25/2016 5

Renewable energy duration curve 2015 100% Hours with renewables > 80%: 3288 h (137 days) Hours with Hours with 80% renewables > 60%: renewables only: 5508 h 1576 h (230 days) (66 days) 60% Hours with renewables > 40%: 40% 6810 h (284 days) 20% 0% 1 169 337 505 673 841 1009 1177 1345 1513 1681 1849 2017 2185 2353 2521 2689 2857 3025 3193 3361 3529 3697 3865 4033 4201 4369 4537 4705 4873 5041 5209 5377 5545 5713 5881 6049 6217 6385 6553 6721 6889 7057 7225 7393 7561 7729 7897 8065 8233 8401 8569 8737 hours 10/25/2016 SEV er fólksins ogn 6

Main drivers for renewable energy in the Faroe Islands 10/25/2016 7

Carbon free electricity by 2030 Faroese Climate Policy - SEV’s “Green Vision”, October 2014 from 2009 Energy Mix 2015 - Governmental target, Sept. 2015 600 500 100% 400 GWh 300 75% 60% 200 100 25% 40% 0 2015 2020 2030 Thermal Renewables Consumption Assumptions: - 2% increase in consumption annually - Linear electrification of Heating 2016 – 2030 10/25/2016 8 - Linear electrification of transport on land

Unpredictable oil expenses 180 33.4 million CAD 160 140 120 100 80 60 40 20 4 million CAD 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Oil expenses [mio. dkr] Olieforbrug [ton] Consumption [kt] Olieudgifter [kr] 10/25/2016 9

Projected Energy Demand 10/25/2016 10

Projected Energy Demand 2015-2030 600 550 500 450 400 Energy [GWh] 350 300 250 200 150 100 50 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Traditional Electricity Heating Electric Vehicles 10/25/2016 SEV er fólksins ogn 11

Renewable resources in the Faroe Islands A systematic approach to identify local resources in order to set up a technology roadmap 10/25/2016 12

Assessment of local renewable resources Average wind speed: > 10m/s Precipitation: ~1284 mm/year (PEI: 890mm/y) soruce: www.gov.pe.ca Peak tidal velocities: ~ 3.5 m/s Average sun hours: ~ 1100 hrs/year (PEI: 1841) soruce: www.currentresults.com 10/25/2016 13

Correlation between the resources 200 14 180 12 160 10 140 120 [mm] [hrs] 8 m/s 100 6 80 60 4 40 2 20 - 0 jan feb mar apr may june july aug sept oct nov dec Average Sun hours [hrs] Average Precipitation [mm] Average Wind speed [m/s] Average Tidal stream velocity [m/s]

Testbed for Smart Grid Technologies 10/25/2016 15

Battery system in Húsahagi 10/25/2016 SEV er fólksins ogn 16

Schematic overview of battery system Inverter output Composit output Batteries Inverter Grid Wind generation Battery System L-EMS Local Energy Management System Wind farm 10/25/2016 17

Battery system in operation Battery power Wind power 20 sec 10/25/2016 SEV er fólksins ogn 18

Schematic overview of PowerHub A box at different Industries Power Management IT system System 10/25/2016 19

Testbed for Smart Grid Technologies Europa Large system test Denmark Small system test Faroe Islands Testbed ~ 40 MW ~ 4000 MW 10/25/2016 20

Technologies supporting the 100% RE Vision 10/25/2016 21

Supporting Technologies 600 550 500 450 400 350 GWh 300 250 200 150 100 50 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Termisk orka Thermal Varandi orka Renewables Assumptions: - 2% p.a. increase in traditional electricity consumption - Electrification of the transport sector - Electrification of the heating sector (houses and buildings) 10/25/2016 22

Nordic Council Nature and Environment Prize Motivation: “The prize goes to the Faroese electricity company SEV for its ambitious targets and innovation. SEV’s work is not only important for the phasing in of renewable energy in the Faroe Islands, but also for the European grid as a whole. Its ambitious targets and the creative nature of its efforts to reduce dependency on fossil fuels make SEV a worthy recipient of the Nordic Council Nature and Environment Prize 2015.” Chair of Board Mr. Jákup Suni Lauritsen and CEO Mr. Hákun Djurhuus 10/25/2016 23

” We simply must balance our demand for energy with our rapidly shrinking resources. By acting now we can control our future instead of letting the future control us” Jimmy Carter 1977 Thank you! Terji Nielsen Dipl.Ing. E.E. (hons) MBA Renewables tn@sev.fo

Wind energy 10/25/2016 25

The Neshagi Wind farm Project specification: • 3 pcs ENERCON E44/900kW (2,7MW) • Capacity factor: 45% • Annual production: 10,6 GWh • Building phase: 2011-2012 Economical figures: • Total cost: 5.2 million CAD • Oil savings: 2.300 ton/year • more than 1.2 million CAD/year • Generating cost: 0,081 CAD/kWh Carbon footprint: • Annual CO 2 reduction: 7.000 ton/year 10/25/2016 26

The Húsahagi Wind farm Project specification: • 13 pcs ENERCON E44/900kW (11.7MW) • Capacity factor: 42% • Annual production: 41 GWh • Building phase: 2013-2014 Economical figures: • Total cost: 20.3 million CAD • Oil savings: 8.000 ton/year • approximately 4,6 million CAD/year • Generating cost: 0,063 CAD/kWh Carbon footprint: • Annual CO 2 reduction: 28.000 ton/year 10/25/2016 27

Other renewable resources 10/25/2016 28

Hydropower 6 Hydropower plants Total installed capacity: 37MW Annual energy production: 115 GWh First installation in 1921 10/25/2016 29

Tidal energy Max speed: 3,5 m/s Tidal stream velocity in Vestmannasund Average: 1,42 m/s 4.0 3.5 3.0 2.5 m/s 2.0 1.5 1.0 0.5 0.0 year 10/25/2016 30

Solar energy (Torshavn) Photovoltaic 700 600 Average sun hours 2007 – 2015 (DMI) 500 180 kWh/kWp 2008 160 400 160 2009 133 300 140 NASA 115 120 107 200 Sun hours PVGIS 98 92 100 86 100 80 58 51 0 60 38 jan feb mar apr may jun jul aug sep oct nov dec 40 27 24 2008 – 2009 figures from local PV installation 20 0 Solar resource from NASA Jan Feb Mar Apr May Jun Jul Aug Sep Okt Nov Des 6 1 Daily Radiation [kWh/m 2 /day] 5 Clearness Index 0.8 4 0.6 3 0.4 2 0.2 1 0 0 Daily Radiation Clearness Index

Instantaneous wind penetration 80% Instantaneous wind penetration 70% Instantaneous wind penetration From SEVs SCADA system (BECOS32) 10/25/2016 SEV er fólksins ogn 32

Challenging weather conditions 10/25/2016 SEV er fólksins ogn 33

Customers HiddenFjord - Salmon Farm delivering superior quality salmon. Fútaklettur Power Hub controls the heat pump that keep the newly born salmons at the right temperature before they are send out (35 kW heat pump ) Bergfrost Bergfrost is a cold storage where all kind of frozen marine products is kept. The cold storage is build in a mountain cave. Care for the environment was the primary reason for blasting tunnels from the mountain for the cold store. It was felt that the blot on the landscape would be too visible if the quarry in Fuglafjørður was extended northwards. Far-sighted council members came up with the idea of going further into the mountain for stones. (150 kW cooling compressor) Kollafjord Pelagic Receives freshly caught fish and freeze it. The facility in Kollafjørð is one of the world’s largest and most advanced processing facilities for human-consumption pelagic fish. (4.200 kW cooling compressors) 10/25/2016 34

Disconnecting flexible loads 25 Sudden stop of a production unit Traditional generation Disconnected consumption [FFDR] 20 Power [MW] 15 10 FFDR: Fast Frequency Demand Response 5 0 0 10 20 30 40 50 60 70 Time [sec] 10/25/2016 35

PowerHub system topology IT system A box at 3 Industries 10/25/2016 36

PowerHub FFDR test Frequency drop after production trip (12 % of total system load) 0.2 0 -1 -0.5 0 0.5 1 1.5 2 2.5 3 3.5 -0.2 Relative Frequency [dHz] -0.4 -0.6 No FFDR -0.8 -1 -1.2 -1.4 Time after Trip [s] -1.6 10/25/2016 37