The transition towards a renewable electrical power system, characterized by an increased share of intermittent power sources, involves several technical, economical, structural and regulatory challenges in order to secure a reliable and stable power grid. Residential apartment buildings are increasingly being equipped with photovoltaic systems which are assumed to be supplemented with distributed energy storage solutions in the near future. To facilitate an efficient network utilization in the future an external broker, a so called aggregator, is currently being discussed in the industry as a possibility to enable the exchange of energy services between a collection of end consumers and electricity operators. The aim of this study is to investigate the prospects for an aggregator in the segment of residential apartment buildings in Sweden. A sociotechnical perspective has been applied in the study as the envisioned transition of the power grid involves a broad spectrum of interdisciplinary variables. The study is based on literature studies and interviews with stakeholder representatives. The results of the study shows that the prospects for aggregators depends on a still pending massmarket availability of technological prerequisits for managing the complex interaction between different parts of the electrical system. In addition, new regulatory structures will be essential in shaping the future conditions that would in general facilitate a successful transition and stable generation of arbitrage revenue.

The electrical grid needs to be changed in the future in order to manage more distributed and renewable generation and also to make it possible for electricity consumers to be more active and aware of their electricity consumption. This future grid is usually referred to as a smart grid. With the transition to a smart grid, new challenges occur. One method to determine those challenges is to perform risk and vulnerability analyses. InStockholm, the new urban district Stockholm Royal Seaport is built. The district has a strong environmental profile and the electricity grid in the area is formed into a smart grid. Responsible for constructing the smart grid is Fortum. The purpose of this master thesis has been to develop a method for risk and vulnerability analyses for smart grids. To achieve the purpose, the following questions have been answered: What are the risks and challenges in a smart grid? What do current methods for risk and vulnerability analyses for electricity networks look like? How can a method be developed for risk and vulnerability analyses for smart grids? What are the risks in the smart grid in Stockholm Royal Seaport? Focus in the thesis has been on distribution level and risks that lead to power outages. Some of the smart grid technologies, such as energy storage, will not be included in the early stages in the development of the smart grid in Stockholm Royal Seaport, and are not addressed in this thesis. The risks that have been identified for smart grids are mainly about challenges in communication and how information is handled, maintenance, and the transition of the grid structure. Electricity companies perform risk and vulnerability analyses for their electrical networks regarding delivery security. This means that the risks examined are such that if they do occur they can lead to power outages that lasts more than 24 hours, or shorter depending on power load. The risks are divided into five different categories and the consequences of the risks are determined after how long time it takes to fix them when they have led to a power outage. To obtain a functioning method for risk and vulnerability analyses for smart grids an additional category has been added. This category is called information security and includes risks related to information and communication technology. The method has been tested on the intended grid in Stockholm Royal Seaport. The most important risks that have been identified in the smart grid are integration of new components and systems, cooperation between participants, lack of information management and interruption in communication network.

One step towards a more sustainable energy system is to create a more flexible electrical grid, where increased demand response among electricity consumers can play an important role. A distribution grid owner can encourage their customers to use electricity more evenly distributed during the day by introducing different types of grid fees such as time-differentiated power tariffs. In this master thesis, the theoretical economic impact of a flattened load profile for a distribution grid owner is investigated. Different factors that impact the distribution grid owner’s economy are identified and two are chosen to be quantified; losses in the grid and the fee to the feeding grid. The possibility to save money by avoiding future investments is discussed but not quantified. Models are developed for modifying an existing load profile, calculating the losses associated with a certain grid and load profile, and calculating the value of a lowered subscribed power to the feeding grid. The models are applied on the distribution grid owner Sala-Heby Energi Elnät AB. The results show that with a load profile that is flattened out 100% every day, which is the theoretical best possible scenario, the losses can be reduced with 2.6% which corresponds to a value of 81 000 SEK. By lowering the subscribed power to the feeding grid as much as the highest peak of the year is reduced in the modified load curve, the cost to the feeding grid would be reduced 1.2 million SEK, or 10% of the fee to the feeding grid. In the 20% curve modification case, which would be more realistic to achieve in reality, the losses decreased by 0.9% which corresponds to a value of 29 000 SEK. Furthermore, the fee to feeding grid would be reduced with 0.34 million SEK which corresponds to 2.8% of the total fee. In summary, the theoretical economic saving potential is around 10 times higher for the fee to feeding grid than for grid losses. / Marknadsbaserade styrmedel i bostadssektorn

I detta examensarbete har syftet varit att undersöka huruvida smarta elnät kommer att motivera en investering i solcellsanläggningar, rapporten riktar sig främst till bostadsrättsföreningar. För att genomföra detta har en litteraturstudie genomförts. Detta resulterade i vilka typer av lagar och regler som gäller idag och hur de används. Litteraturstudien resulterade även i vilka olika scenarion som var troliga att kunna inträffa i framtiden och utifrån dessa kunde ett resultat arbetas fram. De scenarion som valdes att titta närmare på var om vad som skulle hända om fler började köra elbil, om föreningarna agerar elhandlare och säljer solel till medlemmarna och två olika typer av lagring, nätlagring och batterilagring. När scenarierna var fastställda började arbetet med att jämföra dessa för att se vilken som skulle ge bäst ekonomiska avkastning. Resultatet som erhölls var att batterilagring gav högst avkastning men också längst återbetalningstid. Det visade sig även att nuvärdet för en anläggning med batterilagring var lägst bland de undersökta fallen däremot hade lagring i nätet högst nuvärde. Det som gav kortast återbetalningstid var lagring i elnät. Det går att konstatera att bäst resultat skulle erhållas med hjälp av lagring i elbilar då man slipper den dyra investeringskostnaden i batterier men samtidigt kan behålla högst självförbrukandegrad och därmed högst avkastning. / In this thesis, the aim has been to investigate whether smart grids will motivate an investment in solar cell installations. The report is primarily aimed at housing associations. To complete this, a literature study has been conducted. This resulted in what types of laws and regulations apply today and how they are used. The literature study also resulted in the different scenarios that were likely to occur in the future, and from this a result could be produced. The Scenarios that was chosen to look into was “what would happen if more people started driving electric cars, if the associations acted as electricity dealers and sold solar power to the members and two different types of storage, grid storage and battery storage”. Once the scenarios were established, the work started comparing these to see which one would give the best economic return. The result that could be obtained was that battery storage yielded the highest return but also the longest repayment period, which gave the lowest repayment time was storage in power grids. It was also found that the present value of a battery storage facility was lowest among the cases investigated, but on the other hand, storage in the power grid had the highest present value. It can be concluded that the best results could be obtained from storage in electric cars, avoiding the expensive in-vestment cost in batteries but at the same time maintaining the highest self-consuming degree therefore keeping the highest yield.

The initial aim of the roll out of smart electricity meters in Sweden was to allow remote readings of the households’ monthly electricity consumption for billing purposes. Since then the transition towards a smart grid has become a more prioritized matter. In the roll out of next generation smart meters more attention is therefore given to how the Distribution System Operator (DSO) can benefit from the meter through different smart grid applications. This study uses a qualitative research method to identify three general fields of application and 15 specific concepts corresponding to ways in which the DSO can create added value from the information provided by the smart meter. The benefits of one of these concepts, the so-called “last gasp” and “first breath” functionality, are assessed in a business case. The study concludes that the three main areas of smart meter applications are operating the grid, planning the grid and utility in the customers’ household. The study also shows that the outcomes of the business case on the “last gasp” and “first breath” functionality are highly dependent on the cost of the functionality, however the investment can still be motivated through increased customer satisfaction andimproved outage management. The general conclusion is that the smart meter will play an essential role in providing the control and information needed in the transition to a smarter grid.

In November 2016 all nations agreed to the COP21 Paris agreement, which binds the nations to combat a global temperature rise above 2 degrees Celsius during this century. For this to become reality, modern technologies, such as solar power, electrical vehicles and energy storage, will have to pave way for feasible, sustainable societies. Smart grids could be one of the solutions to how to integrate modern technologies into our conventional electricity grids. If we manage to cut peak electricity demand and achieve an even electricity demand, renewable energy investments become more feasible while other services for the grid owner are provided. In this paper it is investigated what capacity of battery storage that is required to achieve an even electricity demand in a local electrical grid with solar power, demand response and electrical vehicles. Further, an economical analysis of the required battery storage is made by comparing investment costs to potential savings for the end customer, energy trading company and grid owner. The investigation is made by performing a case study in Ramsjö Backe outside Uppsala. Two models are created, one aggregated model containing the whole residential area and one containing a one single family building. The results show that in the aggregated model a 4.03 MWh battery storage was required to keep an even electricity demand 90 % of the year, and for the building a 108 kWh battery storage was required. Results from both models show that it is not economically feasible today to invest in even electricity demand in local electrical grids.

In the European Union, there is a driver for a change in the electricity system. The trend is to make the system more environmental friendly and improve the markets functionality. This driver often refers to the development towards a smart grid. In order to accelerate innovation in smart grid and technology application, pilot projects need to be deployed. This master thesis has been done as a part of the Stockholm Royal Seaport urban development project that is a pilot project for smart grid on distribution grid level. The aim of this report is to apply market concept and identify regulatory bottlenecks for smart grid. This report has applied market concept and identified several bottlenecks for two aspects of smart grid. The aspects are integration of distributed energy resources in medium and low voltage level and a changing customer behavior. A changing customer behavior contains both demand response and the implementation of electric vehicles. A state-of-art review on feasible solutions that improve the competition and demand side management of electricity market in smart grid and provide incentives to implement smart grid functions has been performed. The emphasis in the market aspect is on how that new actors like aggregators will enter the market and how the dynamic price can reach consumers. The emphasis in the regulatory aspect is on how regulations promote the application of smart grid supporting technologies for both the DSO and the network users. A case study has been performed for EU countries with a deeper look at Sweden. The case study investigates how far that the current regulations have reached on the way to smart grids. A state-of-art review on conclusion papers of pilot projects has been carried out. However, many pilot projects are still ongoing and not included in the review. The result shows there is still a lack of regulatory incentive to promote smart grid development and supporting market structures. Bottlenecks identified for smart grid services in the Swedish electricity market and regulation are related to four areas. These are the metering system, dynamic consumer price, active distributed units with the possibility to provide services to the system and incentives to the DSO to use new smart grid solutions in the work to enable fast and efficient connection of distributed generation. / Stockholm royal seaport project

Distributed, renewable generation-units and more efficient use of electric power,demands a developed electric grid. This grid is often referred to as the “Smart Grid”. This future electric system rise expectations among actors in the existing electricmarket. International organizations share visions of opportunities for electricityconsumers and new actors, ready to enter the market. At the same time, electricutility companies may question the need for some of these upcoming changes, as theyare sometimes expected to lead the development. This paper therefore seeks to investigate the business opportunities related to SmartGrids. This is done throughout interviews, literature-studies and analysis usinginnovation-development theories. Primary focus of the paper is directed towards theelectric utility companies, secondary towards electric consumers. Business opportunities for utility companies are found to be primary associated withoperation and maintenance aspects of the grid. Developed control-systems andupdated maintenance strategies may increase the overall system knowledge and thequality of the distribution. Cost-reduction activities as these are probably results ofthe revenue-cap regulation controlling grid companies. Future consumers may benefit,socially and economically, from solutions visualizing and controlling different electriccomponents in the real estate. At the same time the development of Smart Grids is a rather slow process, partlybecause of large amount of system-components and partly because of existing rulesand laws concerning the electric system. In order to identify future opportunitieswithin Smart Grids, it is crucial to gain knowledge of the system and to satisfy realneeds or problems.

Världens energibehov förväntas ökar samtidigt som miljökraven blir allt hårdare. För att komma till rätta med klimatförändringarna och utsläppen av växthusgaser måste användningen av fossila bränslen minska samtidigt som energieffektiviseringar och förnybara energikällor måste öka. En större andel intermittenta förnybara energikällor på elmarknaden medför utmaningar. Finns det inget elbehov då det exempelvis blåser eller när solen skiner går den producerade elen förlorad, detta leder till att produktion och konsumtion av elektricitet måste ske samtidigt. För att förnybar energi ska kunna expandera men också effektiviseras måste samhället utveckla smarta elnät. Det finns olika uppfattningar vad som krävs för att skapa smarta elnät men elektrisk energilagersystem återkommer ofta i litteraturen. Det finns forskare som anser att satsning på intermittenta förnybara energikällor inte är ett alternativ om inte energin går att lagra. Compressed air energy storage är ett energilager som använder komprimerad luft för att lagra energin tills det finns ett behov. Industrin i Sverige står för drygt en tredjedel av den totala energianvändningen. Över 90 % av tillverkningsindustrin använder tryckluft. Det finns stora och små förbrukare av tryckluft beroende på användningsområde.  I denna studie kommer en internationell nulägesbeskrivning ges i utvecklingen av smarta elnät med fokus på elektriska energilagersystem. Syftet är att studien ska vara ett diskussionsunderlag, en informationsbärare och idéskapare. Den internationella nulägesbeskrivningen baseras på studiebesök, litteratursammanställning samt intervjuer. Resultatet från den internationella nulägesbeskrivningen visar att intresset för elektriska energilagersystem ökar då det är en central del i utvecklingen av smarta elnät.  Mellan 2011-2013 ökade investeringarna i elektriska energilager med 521 %. En anledning till denna ökning är den internationella trenden med microgrids och mindre decentraliserade kraftverk. Med ökad efterfrågan på energilagringssystem kommer nya energilagringssystem skapas och befintliga system utvecklas. Syftet med studien är även att undersöka om energilager är en lösning till hållbar tryckluftsförsörjning inom industrin. Målet är att dimensionera ett luftningssystem bestående av vindkraftverk och energilager, med en viss volym och maxtryck, för en stor- och liten tryckluftsförbrukare. I studien kommer även kostnadsbesparingen för den stora förbrukaren optimeras genom arbitrage. Dimensioneringen görs utifrån simuleringar i Simulink och optimering görs i MATLAB. Dimensionerat luftningssystemet för den stora tryckluftsförbrukaren består av ett vindkraftverk, ett energilager på 200 m3 med maxtryck på 10 bar. Täckningsgraden, det vill säga andelen av luftbehovet som kan täckas med vindkraft tillsammans med ett energilager, är 26 % för det dimensionerade luftningssystemet. Resultatet ger då 48 % mindre energiförbrukning, cirka 1,2 miljoner kronor i kostnadsbesparing och en miljövinning motsvarande 532 ton CO2-ekvivalenter. Kostnadsbesparing, då el köps via arbitrage, för den stora förbrukaren optimeras till maximalt 1,2 miljoner kronor. Generatorn har då en verkningsgrad på 85 % och kompressorn 90 %. Dimensionerat luftningssystemet för den mindre tryckluftsförbrukaren består av en vindsnurra, ett energilager på 20 m3 med maxtryck på 30 bar. Täckningsgraden, det vill säga andelen av luftbehovet som kan täckas med vindsnurra tillsammans med ett energilager, är 61 % för det dimensionerade luftningssystemet. Resultatet ger då 93 % mindre energiförbrukning, cirka 26 tusen kronor i kostnadsbesparing och en miljövinningen motsvarande 10,7 ton CO2-ekvivalenter. Skillnaden mellan en vindsnurra och ett vindkraftverk är att vindsnurran inte producerar el utan använder rörelseenergin direkt. Ett system bestående av energilager som drivs av energi från vinden lämpar sig bättre för ett mindre tryckluftsbehov där det går att nå upp i högre täckningsgrad. Övergången till smarta elnät är nödvändigt för att tillgodose alla aspekter av hållbar utveckling. Det är ingen del av smarta elnät som är viktigare än någon annan. En hållbar tryckluftanvändning inom industrin är en del av smarta elnät och för att göra det möjligt har energilager en avgörande roll. Nulägesbeskrivningen visar att det i dagsläget finns ett ökat intresse för EES internationellt men att det inte finns ett EES som ensamt kommer lösa integrationen av förnybar energi. Tekniken för energilagring finns idag och växer imorgon. / The world’s energy demand is expected to increase and at the same time the environmental requirements are becoming stricter. To deal with the climate change and the greenhouse gas emissions, the use of fossil fuel need to decrease, while the energy efficiency and renewable energy production must increase. A greater share of intermittent renewable energy on the electricity market entails challenges. If there is no need for electricity when the wind is blowing or when the sun is shining the electricity is lost, this leads to production and consumption of electricity must occur simultaneously. To expand the renewable energy and make it more efficient, society must develop a smart grid. There are different opinions about what it takes to create smart grids, but electrical energy storage, EES, reappears frequently in the literature. There are even scientists who believe that investment in intermittent renewable energy sources is not an option unless energy can be stored. Compressed air energy storage is a technique that uses compressed air to store energy until there is a demand.   The Swedish industry accounts for over a third of total energy consumption in the country. Over 90 % of the all manufacturing industry uses compressed air. There are big and small users of compressed air depending on the industry.  In this study, an international status description is given in the development of smart grids with a focus on electrical energy storage systems. The aim of this study is to be an information carrier that creates discussion and new ideas. The international status description is based on field visits, literature surveys and interviews. The results from the international status description shows that interest in electric energy storage systems is increasing since it is a central part in the development of smart grids. Between 2011 and 2013 the investments increased in electrical energy storage with 521 %. One reason for this increase is the international trend of micro grids and small decentralized power plants. With the increased demand for energy storage, new energy storage systems are created and existing systems evolve. The purpose of the study is also to examine if energy storage is a solution for a sustainable supply of compressed air in the industry. The goal is to design a compressed air system consisting of wind turbines and energy storage with a certain volume and maximum pressure, for a large and a small compressed air consumer. The study will also determine the cost saving for the big users is an optimized through arbitrage. The design is based on simulations in Simulink and the optimization is done in MATLAB. The selected compressed air system for the large consumer is based on one wind turbine, energy storage of 200 m3 with a maximum pressure of 10 bar. The coverage ratio, i.e. the proportion of the air need that is covered by wind energy with energy storage, is 26 %. An investment in this system would give reduced energy consumption by 48 % leading to a cost reduction of about 1.2 million SEK and a reduced environmental impact equivalent to 532 tons of CO2-equivalents. The generator then has an efficiency of 85 %, and the compressor has 90 %. The selected compressed air system for the smaller consumer achieves a coverage rate of 61 % with the following dimensions; one windmill, energy storage of 20 m3 and maximum pressure of 30 bar. An investment in this system would give a reduced energy consumption by 93 %, leading to a cost reduction of about 26 000 SEK and a reduced environmental impact equivalent to 10.7 ton of CO2 equivalents. The difference between a windmill and a wind turbine is that the windmill does not produce electricity instead it uses kinetic energy directly. A system consisting of energy storage driven by energy from the wind is more suited for smaller air requirements where it is possible to achieve greater coverage. The transition to smart grids is necessary to be able to meet all aspects of sustainable development. There is no part of smart grids that is more important. Sustainable use of compressed air in industry is a part of smart grids and to make it possible energy storage is crucial. The international status description shows that there is a growing international interest in EES but there isn’t one EES alone that will solve the integration of renewable energy. The techniques for energy storage are existing today and are growing tomorrow.

Vindkraftverk ansluts idag i snabb takt till elnät runt om i världen. Elnäten är ofta inte tillräckligt dimensionerade på platser där vindkraftutbyggnad är lämplig vilket leder till ett behov av nätförstärkning. Förstärkning sker konventionellt genom att övergå till en högre spänning, något som kan vara förenat med stora kostnader och ledtider. Bland annat därför har en filosofi med beteckningen smarta elnät uppstått, som handlar om hur elnätsystemet ska se ut när det är mer anpassat till de nya energikällornas karaktär och samtidigt medför ett mer effektivt totalutnyttjande. För vindkraftverk kan det då handla om att i högre grad än idag reglera produktionen och understödja nätet, t.ex. via intelligenta kontrollsystem, kraftelektronik och energilager. I den här rapporten undersöks hur mycket vindkraft som kan anslutas till ett svagt elnät då principer för smarta elnät tillämpas och för att se om kostnaden blir lägre än anslutning via konventionella nätförstärkningsmetoder. Det svaga elnätet som studien bygger på ligger i Tidaholm. Vindkraftseffekten som ska anslutas är på 62 MW. Begränsningar i befintliga regionnätets ledningar gör att 60,3 MW kan anslutas med principer för smarta elnät, fast det finns flera skäl till att anta att den fulla mängden vindkraft går att ansluta. Detta till en kostnad som väsentligt understiger kostnaden att förstärka nätet på konventionellt sätt, kostnadsbesparingen uppgår till ca 58 % eller ca 95 Mkr.