How does Europe define "Clean Hydrogen" ?

The European Union and several of its member states are moving forward to promote clean hydrogen as a new energy carrier for a fossil-free future.  

However, as argued by JJ Bürger in an article for the French utility-centered magazine Usine Nouvelle, the European Union's approach is still too vague, leaving it up to the individual states to define what "clean hydrogen" actually means and how it should be produced. 

The discrepancy among the national approaches hinders the creation of a EU-wide common vision for clean hydrogen technologies, as argued in the article, even though Europe's position on hydrogen could have the potential to set international standards for the emerging market of clean hydrogen.

While the above-mentioned article is written in French, please do not hesitate to reach out through the comments below if you seek further information in English.

France's low-carbon hydrogen ambitions : one year later

According to its strategy launched in 2018, France aims to reach at least 200 heavy-duty vehicles powered by low-carbon hydrogen by 2023 - and at least 5000 light-duty commercial vehicles. The targets for 2028 are even more ambitious, as they foresee to multiply the 2023 targets by at least 4.

In order to reach those targets, France announced an equally ambitious support budget of 100 million EUR (potentially per year) when it presented its hydrogen strategy in June 2018. So far, it does not seem like the reality of the 2019 budget can fully live up to that promise.

Nevertheless: now that the first selection of 11 hydrogen projects was presented this month by the French Energy Agency ADEME, the interest in the emerging market for low-carbon hydrogen solutions is at a new height, and it keeps on growing steadily.

However, in order to reach France's overall objective of creating an entire new industry around low-carbon hydrogen, certain financial and regulatory elements are still needed in order to create solid long-term perspectives.

This is what JJ Bürger describes in an article for the French magazine Usine Nouvelle, specialized on industry and energy topics. Please click here to read the entire article.
The article is only available in French language. If you are interested in publications in English or German, please feel free to reach out.

Energy Transition and other challenges for German electricity grids

By JJB

The energy transition is a challenge for electricity grids in Germany. Conceived for a centralized top-down power supply, the grid now has to integrate an increasing number of decentralized bottom-up power flows, while also ensuring that the overall system continues to run smoothly.

However, the increase of renewable energy in the current decade is not the only reason for this challenge. For example, the fleet of conventional power plants in Germany and Europe is also undergoing profound changes at the same time. In addition, parts of the German power grids are also considered by some experts to have suffered of a certain lack of investment in the late 20th century...

In order to assess the challenges of the German power grids correctly, they have to be portrayed in their actual, multi-facetted context. That is indeed the objective of JJ Bürger's book, which was published at Springer-Vieweg, a publishing company specialized in science and academia:

JJ Bürger - Transformationsprozesse und Stromnetzausbau

This book describes the planning processes of German grid development, and the policies put in place in order to modernize those planning processes for the needs of the emerging, new version of our energy system. Moreover, the book compares these targets with the reality of actual grid development progress. A large number of original sources are also referenced, supporting the book's analysis of the current situation in the 21st century, as well as its succinct review of the history of German power grid development in the 20th century.

The book is currently available only in German language. If you are interested in publications in English or French, please feel free to reach out.

The role of blockchain technology in the energy transition

By JJB

This week, on Monday June 18th, the German Center for Research and Innovation (GCRI) and the Fresenius University of Applied Sciences organized a symposium on “The Role of Blockchain in the Energy Transition”, which took place at Grand Central Tech in Manhattan, New York.

Blockchain technology promises critical progress for the energy sector. Indeed, blockchains could improve system reliability and reduce operating costs, thanks to new types of interactions between the power system, its users, and distributed energy resources (DERs) such as photovoltaic rooftop installations, heat pumps, electric vehicles or electricity storage. This would also represent an opportunity to enhance overall system efficiency and to share the economic surpluses arising from better resource utilization.

However, blockchain technology continues to evolve and projects with different levels of maturity are being discussed on both sides of the Atlantic. Therefore, the symposium’s panel of experts discussed a range of key insights for a better understanding of blockchain and its potential for the energy sector.

First of all, what is a blockchain? Kicking off the main event, Jens Strüker from the Fresenius University of Applied Sciences described it this way: “A cryptonetwork is a decentralized network built on top of the internet that provides a wide variety of digital services. Tokens are the internal currency of cryptonetworks, and the incentive mechanism which enables them to function. Blockchain is the underlying technology [of those cryptonetworks and their tokens]”. Strüker highlighted specific features which blockchain technology aims to deliver, such as increased efficiency (higher speed, less layers) compared to intermediate platform exchanges, better control over data exchanges and other benefits that are specific to the token-based approach of blockchains (such as: immediate remuneration, better incentives for participation in the network and for investing in the network).

In a pre-recorded presentation, Ashley Pilipiszyn (from Stanford's SLAC) described some of her research on Crypto Control for Power Systems. By reducing the amount of verification necessary to proof that a certain service was indeed carried out (“Proof-of-Work”, used for example by BitCoin) or that it was monitored correctly (“Proof-of-Authority”), Pilipiszyn’s “Proof-of-Control” concept reduces the blockchain’s energy consumption. Indeed, this blockchain technology only needs to verify that sufficient controls were in place during a given interaction. According to Pilipiszyn, this could become an efficient solution for power system functionalities such as forecasting, scheduling, dispatch and frequency regulation.

Colleen Metelitsa (GTM Research) presented several existing use cases for blockchains in the energy sector, including electric vehicle charging (for instance, the ambitious “Oslo2Rome” project, using an Ethereum blockchain), wholesale power trading (for example: 39 companies have been taking part in a pilot project, using a Tendermint blockchain), distribution management, grid flexibility (e.g.: transmission system operator TenneT will be able to manage residential storage units through a Hyperledger blockchain) and cybersecurity. Metelitsa argued, more generally speaking, that blockchains could be used to optimize multiple market participation options for DERs and also to remunerate them immediately.

Andrew Reid (ConEdison), who recently won an award for his research on microgrids, presented ConEdison’s approach to redefining the utility business model, by integrating DERs and by designing and implementing new management processes that maximize the value of innovation for ConEdison. According to Reid, blockchain technologies will be an essential part of this strategy. He also announced an upcoming ConEdison report on blockchain implementation in the power sector, and on use cases that could prove to unlock substantial energy benefits.

Scott Kessler (LO3 Energy) presented his company’s blockchain technology Exergy, aiming to be a DSO-operated demand-response and grid services platform that understands the time- and place-dependent value of DER grid injections, and that moves towards a system based on grid efficiency. In addition, his company’s work on local community microgrids enabled the “first-ever energy transaction through a blockchain”, according to Kessler. He also emphasized the industry’s need to continue their research efforts for new, profitable business models. Kessler also argued that different layers of blockchain could very well go hand in hand: local ones could be used for specific or urgent local interventions, whereas larger blockchains could be used to ensure system optimization. In a similarly cooperative spirit, he highlighted that the aim of LO3 Energy was not to create a single turnkey-ready blockchain product for the worldwide market, but rather to accompany utilities in their deployment of blockchain-based solutions, harnessing their employees’ knowledge of local constraints and imperatives.

Resposta de demanda elétrica: experiências no Brasil e na Alemanha

Por JJB

 
A flexibilidade do sistema elétrico está muito presente nas discussões sobre o futuro energético. Efectivamente, o impacto da produção das energias renováveis é frequentemente imprevisível. De mesmo, o consumo elétrico das novas innovações, como por exemplo os veículos elétricos, pode ter consequências desconhecidas sobre o sistema. E essas tecnologias vão avançar ainda mais no futuro.


Mas apesar da importância das grandes visões estratégicas à maneira de Tesla, Google e Uber, também vale a pena perguntar qual é a situação atual dos primeros projetos de flexibilidade. De fato, já existem primeros projetos de Resposta da Demanda, ajustando a procura à produção elétrica, sem precisar de blockchain ou de grandes innovações no armazenamento da energia elétrica.



Resposta da Demanda no Brasil
 
Tradicionalmente no Brasil, a energia hidráulica tem uma posição dominante. Esse tipo de energia já dispõe de um grau importante de flexibilidade intrínseca, visto que a água pode ser armenazada antes da produção elétrica. Isso também significa que os preços no mercado elétrico não estão incentivando a criação de novas capacidades de flexibilidade (veja por exemplo essa presentação da IEEE PES).
Todavia, a energia hidráulica também conhece limitações, seja no potencial de armazenamento de cada barragem, seja no potencial geográfico, ou ainda nos fatores ambientais e sociais que podem entravar a construção de novas barragens. Além disso, o consumo elétrico brasileiro não para de crescer. Assim, o Brasil começou a explorar a resposta de demanda, afim de ajustar a procura elétrica à produção.

Nesse contexto, o Brasil introduziu bandeiras tarifárias. Quando as condições são menos favoráveis à produção elétrica, o preço vai subir. Há quatro níveis diferentes: a bandeira verde (= condições favoráveis, então acréscimo de tarifa de 0 R$), a bandeira amarela (acréscimo de tarifa de 0.01 R$), a bandeira vermelha patamar 1 (acréscimo de tarifa de 0.03 R$) e por fim a bandeira vermelha patamar 2 (= condições muito desfavoráveis, acréscimo de tarifa de 0.05 R$/kWh ou seja 0.01€/kWh). Para o mês de Dezembro 2017, a bandeira tarifária é a bandeira vermelha patamar 1.

Outras medidas de Resposta da Demanda estão em discussão. Porém, hoje em dia, o sistema brasileiro ainda não chega a incentivar as reduções de consumo de maneira direta. Quando as condições não estiverem favoráveis, uma redução do consumo só pode impedir que o valor da conta do consumidor aumente. O consumidor brasileiro ainda não pode ganhar dinheiro com uma redução do consumo, mesmo que ela seja útil para o sistema elétrico.

Assim, vale a pena comparar o caso brasileiro com o da Alemanha.  

Resposta da Demanda na Alemanha

Na Alemanha, o progresso da energia solar e das turbinas eólicas significa que uma parte importante da produção elétrica é relativamente imprevisível. Assim, há situações de producão excessiva e otras situações de produção insuficiente. No âmbito da sua estratégia energética, a Alemanha introduziu, em 2013, a Lei sobre os acordos de consumo interruptível (chamada "AbLaV"). Por conseguinte, os grandes consumidores elegíveis podiam pedir a participar num programa remunerando a disponibilidade para uma redução de consumo. Quando estiver realmente necessário reduzir o consumo, o participante deve ser pronto para agir em somente alguns segundos (tipo 1: "interrupção imediata") ou em 15 minutos (tipo 2: "interrupção rápida"). A oferta mínima é uma redução de 5 MW no consumo do participante.

Essa "lei AbLaV" suscitou muitos debates, a oposição parlamentária achando que o dispositivo beneficia só os grandes consumidores. Até a BNetzA, a agência reguladora alemã, repetiu nas suas análises que os mercados já existentes da eletricidade seríam suficientes para incentivar esse tipo de redução de consumo dos grandes indústrias… e isso a um custo muito inferior ao custo da "lei AbLaV". 

Todávia, o governo alemão já prolongou várias vezes esta lei que inicialmente deveria ser só um projeto-piloto de 2013 a 2015. Na versão atual, a “lei AbLaV” permanece em vigor até Julho 2022 pelo menos. 

Mas visto que é um projeto com um tamanho limitado, o custo em 2017 era só de 0.006 ct€/kWh, (seja 0.00006 €/kWh ou em Reais 0.00023 R$/kWh), significando por ano 0.29 € (ou 1.13 R$) para uma família média. Isso é muito mais barato do que quase todos otros programas energéticos da Alemanha, e então não há muita polémica sobre a vontade do governo alemão de prolongar esse projeto-piloto.

Conclusão

O Brasil e a Alemanha começaram a explorar diferentes opções para aumentar a flexibilidade do sistema elétrico. No Brasil, as medidas visam todos os consumidores, enquanto que na Alemanha, visam só um grupo muito limitado. As duas estratégias têm vantagens e desvantagens. Contudo, elas podem nos ajudar para aprender mais sobre as opções de flexibilidade.  É necessário continuar a pesquisa e o diálogo entre os países e entre as diferentes estratégias.

Local Energy Transitions, City Planning and Business Models

By JJB

Energy transition continues to be a much-discussed topic, and local developments and cities play a crucial role for its implementation. But as this industry keeps on growing, solid methods and business models are needed in order to make sure that these changes, as well as profit, are made in a sustainable way. 

That is why a large number of researchers and entrepreneurs followed the invitation of the German Center for Research and Innovation (GCRI) and the HFT Stuttgart to gather at the Urban Tech Hub by Grand Central Tech in New York City on November 27^th and 28^th, in order to discuss about “Energy Systems and Business Models for a Sustainable Urban Transformation” and, on a more technical level, “Urban Energy Systems and 3D Modeling for Low Carbon Cities”.

Sparkling energy (can you spot the metal workers in the above pictures?), architecture and city planning were at the center of discussions at Grand Central Tech and could also be observed outside, in a neigborhood full of energy.

Ursula Eicker from the Stuttgart University of Applied Sciences (HFT) and its Reseach Center of Sustainable Energy TEchnologies (zafh) in Germany provided results from energy research and 3D city modeling aiming to improve urban energy planning and demand response.

Richard Graves from DC-based CleanChoice Energy shared insights from his company’s experience as one of the largest direct-to-consumer renewable retail energy providers in the United States. For instance, their Community Solar program allows clients to save on their bills by purchasing power from a close-by solar farm, without having to provide a roof space and without switching the utility provider.

Tooraj Arvajeh and his team from Blocpower presented their young company’s work, bringing energy efficiency, solar energy and other sustainable housing upgrades to underserved neighborhoods in New York and the US, while also analyzing the benefits of microgrids for challenged territories such as Puerto Rico and its ongoing power outages after the devastating 2017 hurricane season.

Michele Lunati explained how Potluck Energy works as broker bringing together roofing contractors, solar developers and owners of roof spaces, thanks to a patent-pending roof sensor system which allows to prevent roof leaks while tapping into the unused economic potential of roof spaces.

Dieter Hertweck, from the Hollerith Research Center and Graduate School for DigitalBusiness (HHZ) in Reutlingen, Germany, presented case studies on the benefits of distributed energy solutions. These benefits included local energy resiliency, optimized market value of solar power via batteries and blockchain, and a mid-sized town in Germany which created a virtuous cycle by combining circular economy and local energy planning.

Felix Thumm from Transsolar introduced the audience to several projects of climate-responsive urban design and architecture. In the case of a large campus building in Winnipeg, Canada, these eco- and user-friendly concepts not only helped to reduce energy consumption drastically, but also improved reported well-being of employees within the building. Even a reduction of 1.25 less sick days per employee per year was observed. 

Picture taken from HUB at GCT

Bernd Thomas from Reutlingen University, Germany, explained how Micro-CHP, solar energy and batteries can benefit from each other. One of his results showed that if adding Micro-CHP to a solar PV and battery combination, the battery may be much smaller (and thus cheaper) than if the Micro-CHP was left out, while still attaining the same degree of self-consumption.

Ahmed Mohamed from the City College of New York provided updates on research on improved microgrid control, reconciling the benefits of decentralized and centralized approaches.

Matthew Sachs from Peak Power described his company’s contributions to peak shaving powered by machine learning, which has the potential to reduce the public cost of infrastructure development while also reducing individual utility bills.

Alfred Helble from AH Consult, based in Stuttgart, Germany, shed a light on cost-saving strategies for waste water treatment plants thanks to energy planning, including for example biogas production.

Many participants voiced that they were impressed by the large number of insights and by the fact that many obstacles and goals are actually commonly shared by many projects in both America and in Germany. The talks were accompanied by lively discussions with the audience and were concluded with a closing reception as well as discussions on follow-up projects to further foster the transatlantic energy dialog. 

Grand Central Tech by night, in the city that never sleeps.