About Frits Verheij Frits Verheij has been working in the renewable energy business, and related areas, since the start of his career in 1987. Prior to joining KEMA (now DNV GL), he worked at the research organization TNO and the Dutch Energy Agency. Currently, Mr. Verheij is Director Smart Energy for DNV GL – Energy. Additionally, he is actively involved in the energy transition arena and acts as chairman of the Board of Top consortium on Knowledge & Innovation (TKI) Switch2SmartGrids, as well as a board member of the Global Smart Grid Federation and GreenIT Amsterdam. Mr. Verheij is an expert in working at the crossroads of technology, policy, strategy, and socio-economics, and has worked for governments and utilities, among other stakeholders in similar industries. He knows how to work with different views and interests of stakeholders, as well as how to manage multi-client projects, such as the Smart Energy Collective, an industrial initiative of 26 companies in the Netherlands.

1. DNV GL © 2014 SAFER, SMARTER, GREENERDNV GL © 2014
Why ICT is key for sustainable urban
energy
Frits Verheij, Director Smart Green Cities, DNV GL
ICT4S, Amsterdam - NL, August 31, 2016
15 September 20161
Adding a new design to old-fashioned energy

2. DNV GL © 2014
Outline
2
Brief introduction of
DNV GL + ditto of
TKI Urban Energy
Smart energy –
creating value for a
sustainable
decentralised energy
system
Digitization of
energy systems –
trends and some
examples
What should be on
your R&D agenda?

3. DNV GL © 2014
Brief introduction of DNV GL
3

4. DNV GL © 20144
Industry consolidation

5. DNV GL © 2014
DNV GL purpose and vision
5
To safeguard life, property and the environment
Global impact for a safe and sustainable future
Purpose
Vision

6. DNV GL © 20146
Growing share of
renewables
Security and
ageing assets
Increasing global
demand for
energy
Climate change
and extreme
weather
Integration of
energy markets
Transition to a safer, smarter
and greener energy future

7. DNV GL © 2014
How we contribute to a safer, smarter and more sustainable world
Examples of our project portfolio:
§ Smart Cable Guard (SCG)
§ Smart Energy @ PowerMatching City
§ Energy Storage Roadmap
7
Policy Production Transmission & distribution UseTransmission &
distribution
Use

8. DNV GL © 20148
Solving the
Energy Trilemma

9. DNV GL © 2014
Brief introduction of TKI Urban Energy
9
TKI Urban Energy
s o l a r & s m a r t e n e r g y s o l u t i o n s

10. Dutch innovation policy: 9 ‘top sectors’ + ICT
Objective:
§ stimulating (the environment for)
innovation
§ improving international competitiveness
Approach:
§ collaboration in ‘golden triangle’
§ diminishing barriers
COMPANIES
SCIENCE &
EDUCATION
GOVERNMENT
High techLife Sciences Agro-­Food WaterLogistics
Creative
IndustryChemicals Horticulture Energy

11. The Top Sector Energy
One Board of Directors
Five Top consortia for Knowledge & Innovation (TKIs)
§ driving innovation agendas, building ecosystems
500-­600 organisations involved including 200-­300 SMEs
§ € 300M annual budget, 50% from industries

12. 5 Top consortia on Knowledge and Innovation
§ Wind at Sea
§ Gas
§ Switch2SmartGrids
§ EnerGo
§ Solar Energy
§ Bio-­based Economy
§ Energy & Industry
§ Cross-­TKI programs
§ Cross-­overs with other Top Sectors
TKI Urban Energy
s o l a r & s m a r t e n e r g y s o l u t i o n s

13. Main objectives
1. Accelerating Energy Transition
2. Strengthening economic growth, export and jobs
Empowering the New Economy!

14. Human Capital: education for technology
Connect with small and medium sized enterprises
International agenda on sharing knowledge: IEA, ERA-­NET, Horizon 2020
Enhancing export potential (connecting in other countries)
Connecting with the strengths of regions within the Netherlands
Marketing: what will it take for society to accept innovations?
Strategic themes of Top Sector Energy

15. Energy supply today: centralised with separate networks

16. Energy supply in future: towards integrated glocalisation
Domain of
TKI Urban Energy

17. ICT is key in our future ‘energy wheel’

18. Scope of TKI Urban Energy
§ Innovations regarding PV-­Solar, heat and cold, energy efficiency, and integration and intelligent
control of the entire energy system in the built environment
18
PL#2#Koude#en#
Warmte#
Programmalijn#1#
Zonnestroomtechnologie#(PV)#
Programmalijn#5#
Energieregelsystemen#
en#?diensten#
Programmalijn#3#
MulBfuncBonele#
bouwdelen#
Programmalijn#2#
Warmte?#en#koude?#
installaBes#
Programmalijn#4#
Flexibele#energie?#
infrastructuur#

19. DNV GL © 2015
Smart energy –
creating value for a sustainable decentralised
energy system
19

20. DNV GL © 2014
Climate change is at top of mind of governments and industry …
20

21. DNV GL © 2014
… and already affects our live (1) –
Storm surge flooding for Copenhagen and surrounding areas (2011)
21

22. DNV GL © 2014
… and already affects our live (2) –
Superstorm Sandy caused blackout of 8.1 million homes in US (2011)
22
Left: simulation of flooding
extent of Long Island in 2050
Below: actual situation after
Sandy in 2011
Power providers reported outages in every
state from North Carolina to the Canadian
border and as far inland as Ohio and Indiana.

23. DNV GL © 2014
Energy transition needed to realise climate change targets e.g. in Europe
EU decarbonisation scenarios changing the
energy mix
2030 and 2050 range of fuel shares in primary energy
consumption compared with 2005 outcome (%)
23
Source: Energy Roadmap 2050, European Commission
Electrification of energy consumption changing
the business models of utilities, and others
Share of electricity in current trend and in decarbonisation
scenario’s (% of final energy demand)
2030 2050
RES
Gas
Nuclear
Oil
SolidFuels
RES
Gas
Nuclear
Oil
SolidFuels
2005
Range of decarbonisation
scenarios
Range for current trends
scenarios
Electricity use as part
of the energy mix

24. DNV GL © 2014
Socio-economy
§ Decentralisation, next to Europeanisation
§ Digitization
Energy transition strengthened by socio-economic developments …
24
Energy transition
§ Growth of renewables
§ Electrification of our energy system (next slide)
Source: Eurostat
Super computers
that fit in the palm
of your hand
Social media, social trends Socially connected
everywhere, anytime
Access to
‘the cloud’
Open data

25. DNV GL © 2014
Electrification of demand and supply
The role of electricity yesterday, today, tomorrow
25

26. DNV GL © 2014
… and other developments changing the energy landscape locally
26
Big data management and cyber
security threats
Need to become resilient, e.g.
for extreme climate events
Rise of self-supporting
communities
Converging infrastructures: gas,
electricity, heat/cold
Increasing role of IT leads to
smarter grids
‘New’ entrants applying novel
business models

27. DNV GL © 2014
DNV GL’s Technology Outlook 2025 –
10 Technology trends creating a new power reality
27

28. DNV GL © 201428
(€)
Solar PV, 70 GW installed yet

29. DNV GL © 201429
Application range for alternative energy storage technologies
Dischargetimeatratedpower
Electricity storage – a wide variety of applications, e.g. for EVs

30. DNV GL © 2014
Digitalisation of electricity grids
! 𝐵
𝐴(𝑣)
. 𝑑𝐴 = 0
Grids become hybrid and more complex
30

31. DNV GL © 2014
Electrification will ease integration of (local) energy companies, housing
industry, and automotive sector creating game changing business models
31
Transportation Local energy Smart devices
Smart home
appliances, innovative
services, etc.
E.g. micro CHP’s: local
heating and electricity
production
Electric vehicles will
become mainstream
Green
gas
application

32. DNV GL © 2014
Technology developments ease access for (small) consumers, however also
result in more complex energy systems
32

33. DNV GL © 2014
Projections show an increasing need for flexibility at multiple timescales
33
-­‐5000
0
5000
10000
15000
20000
25000
0 1000 2000 3000 4000 5000 6000 7000 8000
Megawatt
Hour
Residual
load
Netherlands
-­‐ 2030
(8
GW
PV,
16
GW
wind)
-­‐5000
0
5000
10000
15000
20000
25000
0 1000 2000 3000 4000 5000 6000 7000 8000
Megawatt
Hour
Residual
load
Netherlands
-­‐ 2012
(0.7
GW
PV,
2.5
GW
wind)
Expected volatility at multiple timescales
-­‐5000
0
5000
10000
15000
20000
25000
0 1000 2000 3000 4000 5000 6000 7000 8000
Megawatt
Hour
Residual
load
Netherlands
-­‐ 2030
(8
GW
PV,
16
GW
wind)
-­‐5000
0
5000
10000
15000
20000
25000
0 1000 2000 3000 4000 5000 6000 7000 8000
Megawatt
Hour
Residual
load
Netherlands
-­‐ 2012
(0.7
GW
PV,
2.5
GW
wind)

34. DNV GL © 2014
E.g. Flexibility markets will be needed to reduce costs of imbalance
34
Relative size of required imbalance power relative to the share of renewables in a given control area
(source: DNV GL Energy and Utrecht University, Netherlands).

35. DNV GL © 2014
We are about to make strategic choices
Development process in smart energy
Large Scale
Implementation
Strategic Choices
Planning
Preparation
Regulation
Large Scale
Demonstration
Service
Demonstration
Feasibility
Demonstration
R&D
Today
35

36. DNV GL © 2014
Digitization of energy systems –
trends and some examples
36

37. DNV GL © 2014
Trend and example #1: Data analytics - Energy and the Internet of Things
§ Industrial internet is going to dwarf the human internet.
§ Size to ~10.000 IoT objects/person
– In 2020 already ~7 IoT objects/person (Cisco)
§ Identification through IPv6.
§ Data tsunami: for utilities e.g.:
– Smart meters
– Measurement data (RTU, PMU, PQ etc.)
– Analysis data (PFI, Oil analysis etc.)
– Flexible pricing data
– Communication data
– Weather data
– PV, EV, Smart grid data (HEMS)
– Future: smart devices (fault records)
37

38. DNV GL © 2014
Energy Analytics will help us to use this data and predict the future
§ Diagnostic Analytics
Determine why something has happened, using content analytics and natural language processing
to harvest insights found in documents, email, websites, social media and so on.
§ Descriptive Analytics (Visual Analytics)
Know what is happening now by gaining a context-relevant view of your business through
exploration-and-discovery and visualization-and-interaction capabilities. See historical trends and
patterns related to your current business situation through dashboards and business intelligence
reports.
§ Predictive analytics
Assess what could happen next, by using predictive models, data-and-text mining, statistical
analysis. Discover patterns and trends from all types of data.
§ Prescriptive Analytics (Decision Support)
Recommends one or more courses of action based on predictive modelling, localized rules, scoring
and optimization techniques. Shows expected outcome of each. Enables decisions based on real-
time data instead of on gut instinct.
§ Cognitive Analytics
Systems that learn from every interaction and outcome in a naturally human-like way through the
integration of all types of analytics to adapt your processes and engagements. Allows to find
correlations, create hypotheses and learn from the outcomes.
38
Now
Past
Future

39. DNV GL © 2014
Answering questions based on Energy Data Analytics
Is the wind resource
appropriate
to support financing this wind
farm?
Is the cable operating as
expected and can I predict
when and where it will fail?
Where am I getting the most
participation in my energy
efficiency program?
How is this customer using
energy throughout the day?
39
How are my generation assets
performing?
What is the status of each of my
renewable assets and what
needs attention?
Where are the best locations in a
region to place renewable
assets?
How does my retail energy offer
compare with others in the
competitive market?

40. DNV GL © 2014
Digital Smart Substation design=communication infrastructure + IEDs + sensors
Integration of functions
Communication infrastructure is one of the key success factors in operation
and maintenance of a DSS, and of future power system in general
40
Operation and control
IEDs and their integration play an important role in the DSS design
Asset management
Sensors and their integration play an important role in the DSS design
Sensors

41. DNV GL © 2014
Trend and example #2: Electric vehicles - with commodity prices declining;
parties are eager to explore alternative earning models
41
§ B2B sees multiple pricing strategies;
B2C products price kWh
§ Retail innovation goes beyond
commodity pricing
§ Electric mobility opens a new
window of opportunities
§ Collaboration between utility and
automotive sector is essential

42. 42
Utilities
§ Want
to
become
service
and
not
remain
solely
commodity
providers
§ Lock
customers
into
long-­‐term
contracts
OEMs
§ Want
to
sell
more
EVs
&
PHEVs
to
comply
with
ever
stricter
CO2
fleet
targets
§ Want
to
ensure
a
continuous
participation
in
the
EVs
lifecycle
revenue
stream
Customers
§ Search
for
a
more
holistic
e
mobility
offering
§ Shy
away
of
the
high
TCOs
and
generally
prefer
to
pay
their
share
of
the
use
instead
of
owning
the
assets
The
EV
will
be
at
the
Intersection
of
OEM,
Utility
and
Customer
Electric
vehicles
as
game
changer
for
the
utility
business?
Customer
Alternative
&
Second
Use

43. 43
Technology
-­‐ Alternative
Use
Connectivity
and
Battery
Degradation
are
the
Main
Challenges
to
be
overcome
§ For
the
utility
to
assume
control
of
a
sufficient
large
number
of
EV’s,
V2H
or
V2G
connectivity
is
key.
Communicating
via
the
smart
connected
car
itself
lowers
the
investment
costs
§ In
order
to
perform
the
uses
cases,
both
discharging
capability
and
access
to
the
State
of
Charge
information
should
be
supported
by
the
OEM.
§ Performing
use
cases
for
alternative
use
can
put
extra
strain
on
the
battery
Portfolio
optimization
shows
the
biggest
influence
on
battery
degradation
§ Other
use
cases
barely
influence
battery
life
§ By
constantly
matching
market
prices
and
a
careful
execution
of
the
optimal
charging
and
discharging
the
effect
can
be
minimized
Connectivity
Battery
Degradation

44. DNV GL © 2014
New collaboration leads to new business opportunities
???
Present infrastructure accommodates various ownership and/or control concepts
44

45. DNV GL © 2014
First examples of new business models have been launched
15 September 201645
Source: Jedlix
Source: Energeia

46. DNV GL © 2014
EV market just started, however growing so fast that it can contribute to the
present primary and secondary control reserve
46
EVs will be able to serve the
entire German demand by 2025
By that time stationary storage
(2nd use of EV batteries) will
begin to take over the market

47. DNV GL © 2014 15 September 201647
Trend and example #3: Universal Smart Energy Framework (USEF)
In search for a more sustainable energy
system, many different pilots are initiated,
often focussing on very similar energy
flexibility concepts.
While technology pushes the market
forward at considerable speed, we risk
wasting time and money reinventing the
wheel, or addressing incompatibility issues
later.
USEF delivers the market structure, the
tools and the rules for energy flexibility
trading. It provides a common standard
for a unified smart energy market that is
easy to build on.
With existing detailed specifications and
the first real-life pilots in the market, USEF
is the most advanced initiative of its kind,
enabling implementations to accelerate
and scale rapidly and assuring product
connectebility.

48. -­‐ 48
To
create
an
effective
market
we
should
all
play
together
by
the
same
rules
Which
may
lead
to
e.g.
different
aggregation
models
Regulation
differs
Market
characteristics
differ Requirements
of
flex
products
differ
One
size
does
not
fit
all
– yet
harmonization
is
needed

49. USEF
can
be
adapted
to
fit
different
scenarios
and
markets.
The
framework
is
already
being
applied
to
smart
energy
demonstration
projects,
like
EnergieKoplopers in
Heerhugowaard.

50. New
Smart
Energy
System
Capacity
Management
Portfolio
Optimization
System
balancing Transmission
System
Operator
Balance
Responsible
Party
Distribution
System
Operator

51. Producers
Large
Industry
Central
Generation
Local demand and
supply
TSO
Balancing
Capacity
Commercial
&
Industrial
Residential
Aggregated
BRP
Portfolio
Optimisation
Grid
Management
DSO
Flexibility
Suppliers
Flexibility
Users
x x

52. USEF
Role
Model

53. Consumer
Aggregator
FLEXIBILITY
Cooling
Systems
Production
Process
Emergency
Generators
Heat
Pump
Solar
Electric
Vehicle
Airco
System
How
is
value
created
from
flexibility?
– The
Consumer
perspective
The
aggregator
A
new
role,
unlocking
flexibility

54. Consumer
Aggregator
BRP
DSO
TSO
Flex
for
Portfolio
optimization
Flex
For
grid
management
Flex
to
maintain
balance
UFLEX
Cooling
Systems
Production
Process
Emergency
Generators
Heat
Pump
Solar
Electric
Vehicle
Airco
System
How
is
value
created
from
flexibility?
– The
Market
perspective
FLEXIBILITY

55. USEF
implemented
Live
since
18
August
2015
Households
provides
about
200
times
0.5
kW
of
controllable
flex
automatically

56. Balance
Responsible
Party
Flex
for
imbalance
correction
Distribution
System
Operator
Flex
to
prevent
congestion
Aggregator
flex
flex
flex
Flex
fees
– no
dynamic
pricing

57. DNV GL © 2014
What should be on your R&D agenda?
57

58. DNV GL © 2014
R&D creates business for tomorrow
58
To-do list
§ Integrate ICT in energy technologies,
and in new energy market designs
§ Think technology + economics + society
+ innovation policy + regulation + …
§ Join forces with industries and academia
having other expertise than yours
Attitude
§ Open-minded, able to combine ideas and
new technologies
§ Strong believe in your own vision, still
willing to be a team player
§ Out-of-the-box? What box?

59. DNV GL © 2014
SAFER, SMARTER, GREENER
www.dnvgl.com
Thank you.
59
Frits Verheij, Director Smart Green Cities
frits.verheij@dnvgl.com
+31 26 356 2445