As I understand, you are in charge of “smart-grid” development within the Russian Federation. Russia has a comprehensive, but somewhat “ageing” grid system – but what is the true current state of the regions transmission grid?
Due to a shortfall in funding for the renovation of electric power sector assets for about 10-15 years in the early 90s, we’re now seeing critical wear of the substation equipment fleet. The guideline equipment life (25 years) has ended for 54.7% of these assets and total excess life (35 years) has been surpassed for 22.2% of equipment.
Considering the longer lifetime for HV power lines, on average 40 years, the wear of power transmission line equipment comprises the following – guideline life (40 years) has ended for 29.2%, total excess life (50 years) has been surpassed for 8.9% of equipment.
Industrial development and the implementation of new high-tech equipment in Russia will lead to new requirements for reliable, cost-effective and high quality power supply (“digital” demand for reliability and quality). The current state of the grid system and the slow approach to modernization and development of the power grid system has gone a long way to impeding the ongoing problems we are facing and the long term development of the sector. The solution has to be a whole new innovative approach to the development of the existing grid network– which would involve the creation of a new system which will meet the economical challenges of both the present and future, and create a solid foundation for future growth.
The term “Smart Grids” has many interpretations, but what does developing a “smart grid” actually mean for the Russian distribution sector?
The term “smart grid” covers one of the most important trends in the development of the electricity sector, and the new technologies that are available in the transmission and conversion of electric power. I am referring to technologies that are capable of making the power grid, and its load, as manageable as possible.
In our opinion, the smart or actively adaptive grid is a whole new type of grid system built on the latest solutions, principles and technologies of power transmission. This allows for the following:
» Real-time alteration of parameters and grid topology based on the current conditions, so eliminating accidents, based on equipment with alterable parameters (FACTS, STATKOM, USHR), and high-T superconductivity equipment, out-of-phase connection insertions, phase reverser devices, active filters, short-circuit current limitation equipment;
» Integration of all types of power generation (including small generating stations) and all types of end users(from households to large scale industry) to enable the management of their power demand;
» Providing expansion of market opportunities for the infrastructure by having a wide range of services to be interchanged between the market entities and the infrastructure;
» Minimizing losses and implementing “self-diagnostics” and “self-recuperation” of systems while maintaining reliability and quality of the supply;
» Integrating electric grid infrastructure with IT infrastructure to create a fully integrated management system and full-scale information support.
As a result, the grid system infrastructure becomes truly intellectual (or smart) not only including communication infrastructure based on IT, but also brand new technologies and methods of power generation, accumulation and consumption of power.
The Federal Grid Company announced in 2010 a huge investment into “smart grid” development. When will we see the impact of that investment?
Individual technologies and solutions are created after extensive R&D and are later trialed and perfected in separate power grid assets of OJSC “FGC UES”. The R&D process includes an entire chain of events, from the initial idea to the implementation of actual specific equipment. A number of projects are already underway at some of our facilities. As an example, a STATKOM unit has been installed at the Vyborg converter complex, a synchronous compensator has been installed at the Beskudnikovo substation (Moscow), and an overhead power line with multi-chamber insulator arresters is undergoing pilot operation in Rostov oblast. As an idea, The Federal Grid Company is planning to spend 19 billion rubles for research and development in between now and 2014.
An important transition from pin-pointing a specific technology area that needs attention and the subsequent development or technology purchase is the implementation of complex pilot projects and the creation of power clusters. The implementation of power clusters is necessary for the development of intellectual, or smart, grids (detection of faults and upsides, synergy effect from using various technologies) for future duplication across UES Russia.
As part of smart grid implementation in UNPG in the East and ESD in the North-West, pilot projects are being implemented. During 2011-2012 we are planning to complete pilot programs for smart grids in the Far East and North West regions, where large-scale implementation is planned for the “Elgaugol” power cluster in a branch of OJSC “FGS UES” – PTS East.
To implement a smart grid in this power cluster, we are planning to install “digital” compactly designed substations (the first digital substation was launched in December 2010) which include the latest technology such as a new type of reactive power compensation and voltage maintenance system, and active harmonic filters which use equipment monitoring and diagnostics systems
Innovations such as these are also planned for two other power clusters in the Far East – “Vanino” and Primorsky kray, which will lead to a more reliable power supply for track substations at the Khabarovsky Kray electric railroad and provide a reliable power supply for the southern part of Primorsky Kray.
The second territory planned for smart grid implementation is the North-West region. Here, the focus will be on the power clusters of the Karelia energy grid, that of the Komi Republic and Arkhangelsk, and the both the “Large” and “Small” grid rings of St.Petersburg.
In order to help aid in the implementation of new solutions and technologies within the next 2 x years, we are working hard to resolve the problems of power output limitations by the generating stations, and to improve the reliability of power supply to the consumers.
Will government and regional regulation have an impact on the speed of “smart grid” implementation?
A general concept and overall vision of intellectual power system with an actively adaptive grid is presently being developed by the all participants (power companies, ministries and equipment manufacturers).
It is apparent that creating a smart grid is impossible without the proper support from ministries, legislators, equipment manufacturers, science institutes, universities, etc.
This is why FGC initiates open discussions for the issues of smart grid development (round tables at St.Petersburg international economic forum (SPIEF) in 2010 and 2011, various conferences and expos with participation of all interested parties.
The latest round table at SPIEF that took place on the 16th of June 2011, where various aspects of “smart grid” development in Russia were discussed; top managers of Russian and foreign power companies, managers of power equipment manufacturers, telecom companies, business executives, legislators and executive government officials attended.
During the round table, the representatives of legislation and executive authorities had expressed their readiness to provide the necessary support for future development. This support not only includes preparation and approval of corresponding legislation initiatives (such as the Grid Code), but also creating unified strategic plans for development among the power companies.
And doesn’t a successful “smart grid” also need support from the generation facilities? Including serious investment and modernization within the plants?
Obviously, creating a smart grid depends on many factors – from the state of scientific research to production of modern equipment. FGC is already building this network, thus forming the foundation for future changes.
The company is expanding its cooperation with scientific research and design companies (some of them as part of earlier cooperation agreements), including institutes of RAS, SB RAS, FSUE ARETI, OJSC “HVDCPTRI”, OJSC “ENIN”, OJSC “Institute Energosetproekt” among others, pushing them to undertake scienctific research, experimental design and technological works (R&D), including that within the framework of the “Intellectual energy system” technology platform where OJSC “FGC UES” is both the initiator and a participant.
The special focus is on personnel training (“support” universities – MEI, SPBSPTU, ISPU). As part of the expansion of innovative ideas and activities, OJSC “FGS UES” will expand the Russian science and engineering base, including by attracting foreign partners and collaboration with Russian higher education institutes.
FGC had adopted a Program for the support and motivation of local manufactures, and also, considering earlier cooperation agreements, has formed a system of long-term partnership between OJSC “FGS UES” and equipment manufacturers, including foreign ones, which will provide:
» mutually beneficial cooperation of FGC with the equipment manufacturers;
» increased quality and competitive ability of locally produced energy equipment;
» localize the production of modern energy equipment in Russia and increase the share of equipment purchased by FGC in Russia;
» Reduce the delivery time, registration and attestation time for equipment required by FGC.
As part of this program, requirements are established for long term contracts for equipment delivery, including full service support by the equipment manufacturer for the entire equipment lifetime.
In order for the these programs to be implemented, long term programs of compulsory adaptation need to be put in place. To ensure that all participants are “reading from the same page” for the creation of a smart grid, all participants from related industries such as electrical technology, construction, design, science education, service, repair and engineering need to be on board.
And what incentives are there for operators to upgrade their facilities? Who will pay for their modernization?
Currently, contracts for capacity supply (CCS) for the bulk energy market are being signed, which state the commitment of the generating company to introduce new capacity in a timeframe stipulated by the investment program. Generating equipment will be upgraded within the framework of these agreements.
And what benefits will the end user get from a smarter grid system?
The transmission grid consumers will be provided with reliable and uninterruptable power supply with reliability and quality factors required by the consumers (digital indicators), which subsequently will decrease expenses for technological failures and losses, prevent cost escalation for infrastructure maintenance as well as provide new services from the grid (such as energy accumulation, IT and telecom services).
I presume the end users will pay for this development through higher energy tariffs?
New RAB tariff regulation parameters were approved in 2010. Changing from a 3 year to 5 year planning stage had allowed the financing of a long-term FGC investment program that created a solid foundation for future reforms.
RAB is the system of long-term tariff regulation, aimed at providing an internal rate of return comparable with the market conditions, and subsequently capable of providing investments for the construction and modernization of the grid infrastructure. The basis of this method is a system of tariff calculation which allows the gradual return of invested funds, including the interest on the borrowed capital. Because the investment is returned over a longer period, the tariffs can be maintained at a reasonable level.
Therefore the implementation of both individual projects as well as development of the smart grid as a whole will not affect the consumers outside of the current tariff proposals.
So, we should soon see some big developments within the grid itself, but how about the “smart- home”? When will we see Russian consumer adopting smart systems within their properties?
The creation of a smart grid is a complex, relevant and important task for both the energy industry and economy of Russia as a whole. To maintain our leading position among the global community and to create an smart grid power system in Russia, the participation of all the companies and entities I have discussed in this interview is necessary, as well as a combined effort and support from the energy industry players, consumers, equipment manufacturers, science community and related industries.
Regarding smart homes, this needs a smart grid on the one hand, and the installation equipment and systems to facilitate this in the consumers home. There are currently a number solutions available; they are however quite expensive. These will decrease in price though once the we reach the COMPLETE SMART GRID!
