The Energy Futures Lab Briefing Papers are periodic reports aimed at all stakeholders in the energy
sector. They bring together expertise from across Imperial College London to provide clarity on a
wide range of energy topics.
Contents
EXECUTIVE SUMMARY 3
1 INTRODUCTION 4
2 ENERGY SYSTEMS INTEGRATION:
DEFINITIONS AND TECHNOLOGIES 5
2.1 Introduction and definition 5
2.2 Types of Energy System Integration 6
2.3 Scale 12
3 POTENTIAL BENEFITS OF ENERGY SYSTEMS INTEGRATION 13
3.1 Efficient use of resources 13
3.2 Decarbonisation 14
3.3 Improved system security and operation 14
3.4 Cost reduction 17
3.5 Service Provision 17
4 REALISING ENERGY SYSTEMS INTEGRATION 18
4.1 The role of the power grid 18
4.2 The role of the gas network 18
4.3 The role of district heating networks 20
4.4 The potential role of hydrogen 22
4.5 The role of transport 22
5 POLICY, MODELLING AND RESEARCH OPPORTUNITIES 24
5.1 Policy Opportunities 24
5.2 Modelling Opportunities 25
5.3 Research opportunities 28
6 CONCLUSIONS 30
Contents
2
Executive Summary There are many challenges involved, however, in
realising the potential of ESI. These include, but are
Energy Systems Integration (ESI), in general, not limited to:
refers to the connecting and combining of a wide
range of energy services and systems in order to » The complexity of highly integrated energy
maximise energy use and minimise waste and systems
carbon emissions. Building an energy system using » A possible need to change institutions, ownership
ESI could be a potentially cost-effective way to and markets
decarbonise the multiple facets of our energy sector,
use limited resources in a sustainable way and » The multidisciplinary efforts in research and
produce a more resilient system by incorporating development that will be required to bring about a
greater flexibility and diversifying energy sources. fully integrated, low-carbon energy system
Potential benefits of ESI include more efficient Strong policy support will be required to realise the
use of energy resources, especially in capturing benefits of ESI. Innovation in the design of markets,
and using waste heat, aiding decarbonisation policies and regulation is required to facilitate
by enabling electricity and lower-carbon fuels to coordination between different energy systems and
provide energy services traditionally provided by realise the potential benefits of energy systems
higher-carbon sources, and increase system security integration.
and resilience by allowing the incorporation of a
Market arrangements will need to be changed
more diverse set of energy sources.
so that they reward new and different types of
A further anticipated benefit of ESI is a reduction in flexibility, for example by improving the business
the capital and operational costs of energy networks case for power companies to invest in more flexible
through exploitation of the greater flexibility offered and hybrid generation and conversion technologies.
by integration – although there is little evidence to A whole systems approach, in which one single
support a quantification of this benefit at this stage. party has responsibility for optimising technical
performance, may be required.
ESI is made possible by three categories of
technologies: Research into the benefits of enabling technologies,
such as energy storage, microgrids and demand-
» Smart operations and Information and side response, has tended to consider single
Communications Technologies technologies or a single service from these
» Integration between different energy vectors technologies, rather than a hybrid portfolio. More
studies which quantify the multiple services enabled
» Using energy carriers, such as hydrogen, to by using technologies and systems together are
interface between vectors needed to showcase, quantify and validate the
Executive Summary
1: Introduction
The UK energy sector is undergoing a transition, driven by the Climate Change Act (2008) goals to
reduce its greenhouse gas emissions by at least 80% of the 1990 levels by 2050, and the need to
replace ageing infrastructure and address energy poverty, competitiveness and security concerns.
Taking a wider view and integrating multiple energy systems and sectors, such as transport,
buildings, industrial processes, water and waste treatment, may expand the scope for identifying
new ways to improve efficiency, reduce waste and lower costs.
Energy Systems Integration (ESI) has The aim is to reflect on the question:
been suggested as a cost-effective way to
decarbonise the multiple facets of our energy How can enhanced energy systems integration
sector, use limited resources in a sustainable ease the path to decarbonisation and increase
way and produce a more resilient, flexible and the flexibility required to manage variable
cost effective system. renewables and new energy demands?
ESI has many definitions, which we elaborate To that end, this report investigates and
on in Section 2. However in general it means outlines the current evidence on the different
connecting a wide range of energy services and opportunities, knowledge and implementation
systems together to maximise energy use and gaps associated with the potential for enhanced
minimise waste. A small example would be a ESI.
solar array that could feed electricity to the grid, After outlining the research methodology in
using any excess to generate hydrogen for use in Section 1.1, the report sets out the findings
the hydrogen fuel cell of a car. of the evidence review. Section 2 discusses
New and additional forms of ESI may help to different definitions and types of ESI. Section
lower carbon emissions, meet climate change 3 reviews the potential benefits of ESI, which
targets and incorporate increasing penetrations include the more efficient use of resources,
of distributed, renewable energy resources, better management of variable renewable
demand-side response, smart technologies, generation, facilitation of low carbon vectors,
energy storage and multi-vector energy systems. cost reductions and improved energy security
and flexibility.
This report investigates the multiple aspects of
1: Introduction
ESI and explores potential benefits, interactions Section 4 discusses the role of the different
with existing infrastructure and the features components of the energy system and other
of the technologies that may enable a higher sectors in realising a higher degree of ESI, and
degree of integration of energy systems. the effect on their respective infrastructures.
The features of the main technologies that will
enable this integration are outlined in Section
5. Section 6 synthesises the key findings and
conclusions regarding the challenges, policy
implications and research gaps.
4
2: Energy Systems Integration:
Definitions and technologies
resources for the electricity grid (and vice sources and networks and the key technologies
versa).’ that enable integration among them.
6
Figure 1 Possible areas for integration between different energy systems (Source: Abeysekera et al., 2016)
Electricity
Storage CHP
Electricity networks
Fuel Cells Power to gas
Hydrogen system
Energy Networks/Systems
Compressors Steam
Heat pump reform
Gas networks
Compressors
C-CHP Thermal store
Heat networks
Pumps Absorption Electric
chillers chillers
Cooling networks
Pumps Cold store
Energy Demand
(Electricity, gas, heat, cooling, transport)
2.2.1 Smart operation and procedures, act to mitigate their effects and
aggregation identify opportunities for achieving specific goals,
such as lower costs, mitigating demand peaks,
Advances in Information and Communications reduced emissions and improved efficiency.
heating networks to meet both the thermal and provided from one or multiple energy sources
electricity demand of end users, benefit from (e.g. natural gas, biogas and biomass).
Definitions and technologies
8
Electrical and thermal storage are also an P2G producing hydrogen uses relatively small
important component of DMG systems, enabling quantities of water (California Hydrogen
the production of electricity, heating and cooling Business Council, 2015), requires few
to be decoupled from local demand. Such conversion steps and can respond in less than
integrated urban energy systems are complex a second. The hydrogen can either be stored for
and demand powerful approaches to system later use on site, or injected into the gas grid,
modelling and assessment (see Section 4). An contributing to decarbonisation of the gas grid
energy service company or energy retailer can by increasing the proportion of low emission
set up a centralised commercial and technical fuel.
management system, in order to guarantee
a reliable supply of multi-energy services to The use of electrolytic hydrogen as an energy
a local community of end users (Mancarella, storage option in the gas grid, transportation or
2013). industrial sectors provides an effective way to
absorb excess energy and is a key application
for this technology (Qadrdan et al., 2015;
2.2.3 Power-to-X Eyer, 2010; Patel, 2012) . However, the round-
The term power-to-X refers to technologies trip efficiency of power-to-gas pathways are
that convert surplus electricity into alternative relatively low (around 35% for power to gas
products. The “X” may stand for fuel (e.g. systems compared to above 90% for battery
hydrogen, methane, methanol), ammonia, storage (Winkler-Goldstein and Rastetter, 2013).
chemicals, heat, mobility and syngas, among This efficiency can be improved up to 70% by
others. These products can be used directly, or using reversible solid oxide electrochemical
may be converted back to electricity in power-to- cells, recycling waste heat and providing both
power applications, making this option a flexible heating and electricity services (Jensen et al.
way to link power and fuel networks and an 2015).
effective way to integrate intermittent renewable
resources into energy systems and services.
2.2.4 Smart Technology » Machine learning and big data, which offer a
range of approaches for the development of
Advances in Information and Communication optimisation routines and learning from data
Technology (ICT) have enabled the power grid to predict future system behaviour.
to become more interactive, automated and
responsive. This smart grid consists of a network Smart grids also make use of power electronics
of devices deployed throughout the system, to convert the power obtained from different
which allow for two-way communications renewable energy sources into a form
and sharing of real-time, location-specific compatible with the rest of the power grid.
information (Ekanayake et al., 2012). Power electronics are widely employed to
control the flow of power throughout the
An increasing array of sensors and measurement network and to improve the quality and
devices provide the smart grid with the sensory reliability of power during transmission and
input required to monitor the state of the distribution. They can also be deployed at the
system, respond to and correct faults and point of use, to ensure voltage stability by
ultimately predict disruptions. The technologies filtering the currents drawn from the network.
that have been developed include:
The Virtual Power Plant (VPP) refers to the
» Smart meters, which enable the grid to aggregation of distributed microgeneration
monitor gas and power flows by tracking the and other energy resources, which use ICT
loads on various parts of the network. technologies to act together as a single power
plant with the capacity to control the aggregated
» Phasor measurement units (PMUs), which
elements and manage the flow of electricity
enable system operators to monitor electrical
between them (Othman et al., 2017; Ekanayake
states and manage power quality throughout
et al. 2012).
the electrical system.
Integrating different energy resources into
» Advanced metering infrastructure (AMI),
a VPP allows them to have similar technical
2: Energy Systems Integration:
10
IoT has been facilitated by the technological between operating synchronously with the
innovation that has developed ever smaller connected utility and islanded mode.
computing capacities, advanced algorithm
design and the proliferation of wireless Each microgrid can be viewed as a power
communication networks with enough cell within the larger system, presenting a
bandwidth to carry control signals and data controllable generation and load profile to
(Fischer and Madani, 2017). In the UK, the the grid (Pudjianto, 2008). Microgrids may
centralised system of electricity generation, have excess energy to supply to the grid when
transmission and distribution is being needed and the grid can send a disconnect
increasingly challenged by the increasing signal to the microgrid if the grid encounters
growth of decentralised energy resources and difficulties with load management.
the dynamic needs of energy suppliers and The key benefits of this technology are for
customers. In the energy sector and specifically its local customers, providing them with an
the power system, IoT has been used through affordable solution for locally-controlled power
the development of the smart grid concept which can be self-sustaining if outages occur
(Fischer and Madani, 2017). in the grid. While connected to the grid, power
The concept of a microgrid was originally reliability is improved by redundancy. Microgrids
defined by the Consortium for Electric Reliability can provide social benefits by encouraging
Technology Solutions (CERTS, 2003), as a way to increased customer participation and enabling
improve reliability or autonomy for critical loads, essential emergency services, such as medical
by breaking the electricity grid into discrete, care and food and water delivery systems, to
distributed energy islands, each capable of remain operational during disaster conditions.
operating independently of the grid during There are also benefits to the grid, as the
disruptive events. diversity of energy sources within microgrids
may enable some to assist with restoring the
Since then, the concept and its uses have grid during black-starts, following disruptive
Figure 2 Integration of energy systems at different scales (Source: O’Malley et al., 2016)
12
3 Potential benefits of
Energy Systems Integration
Integration of energy systems is a potential A higher degree of ESI may allow for a higher
path to provide a means to improve resource utilisation rate of resources, by taking a whole-
efficiency, enhance power grid flexibility and system view and incorporating other energy
security in a cost-effective way and accelerate networks, such as gas and heating. A study
the transition to a low-carbon energy sector. of the UK energy system found that electricity
generation, domestic energy use and transport
The potential value of energy systems hold the greatest potential for efficiency
integration technologies varies from place to improvements (Hammond and Stapleton, 2001).
place – for example, approaches will differ
distinctly between urban areas in a developed Most energy losses in these sectors are due to
country and rural areas in developing countries. wasted heat. Capturing and reusing this energy
While in many regions increased penetration is therefore an important focus for reducing
of renewable energy is the principle driver fuel consumption and carbon emissions. In the
for ESI, in some regions there are alternative worldwide production and use of electricity
priorities such as better use of resources, wider and heat, up to 51% of energy is lost through
electrification, or the transitioning from coal to conversion (IEA, 2015).
natural gas generation (O’Malley et al., 2016).
In addition, polygeneration systems provide a
The following sub-sections outline the potential flexible bridge between electrical and thermal
benefits of ESI and highlight how different types energy streams and are an attractive option
of integration may realise them. for facilities having a large amount of waste
heat, such as underground metro systems,
3.1 Efficient use of resources data centres and large-scale cooling systems.
et al., 2014).
being able to exploit alternative pathways when
A high degree of ESI may also facilitate the some resources are not available. For example,
decarbonisation of the gas network. Natural gas cogeneration technologies and district heating
is currently a major component of the energy and cooling networks are able to simultaneously
3 Potential benefits of
system, generating over a third of electricity produce a range of useful energy vectors using a
in the UK, and is expected to play at least a wide range of energy sources (IEA, 2008).
transitional role in the ongoing low-carbon
transition, due to its advantageous carbon
profile compared to coal and oil, and the wide
penetration of gas infrastructure (Pearson and
Watson, 2012). The carbon intensity of the
gas network could be lowered through wider
integration of renewable gases, such as biogas
and synthetic methane, as well as hydrogen.
14
3.3.2 Reliability and resilience Smart operation of electricity storage can
improve the power system’s reliability by
Reliability is a well-established concept in maintaining stricter control of voltage and
existing energy infrastructures, with a set of frequency, while all forms of energy storage
metrics to quantify concepts such as the security provides back-up power and can assist in
and adequacy of the system (Panteli et al., 2015). restoration operations, including black-start
(Nguyen and Flueck, 2012). An effective way
Resilience is a relatively new concept, dealing
to confer resilience to the energy system is
with events such as multiple simultaneous
by diversifying the energy supply through
failures or extreme weather events which,
connected systems, such as CCHP and
while less likely to occur, have far-reaching
microgrids incorporating hybrid generation
consequences, often affecting a large number of
technologies.
customers and may involve long term outages.
A resilient system would recover rapidly from Microgrids have been shown to be key in
such an event and learn from it by adapting its supporting critical infrastructure during rare,
structure and/or operation to improve its ability high impact events and enable both grid
to prevent or recover from similar events in the isolation and recovery (Strbac et al., 2015;
future (Lin and Bie, 2016). IEC, 2014). Locally deployed cogeneration can
support continued operations in the event of
These events are mainly weather-related and
grid disruption. Demand side management
their frequency has increased over the last 30
strategies enable better control of energy
years, particularly in the first decade of this
demand and supply during such events (Lin et
century (Kenward and Raja, 2014). As climate
al., 2016).
change progresses, the frequency, intensity
and duration of extreme weather events are However, interdependencies may also lead to
expected to increase (IPCC, 2012). Existing new failure modes, such as cascading failures,
energy infrastructures have been designed for where an otherwise stable infrastructure may
reliability, but a highly reliable system is not be impacted by failures in other infrastructures
necessarily resilient, using the definitions above (Buldyrev et al., 2010) or where vulnerabilities to
(Lin et al., 2016). the same cause in multiple infrastructures result
Liquid air (aka liquid nitrogen) is commercially produced at scale, with a significant surplus
available for use. Liquid air can also be produced using off-peak electricity or through
integration with industrial processes, to capture waste cold or heat. This technology has the
unique ability to capture low grade waste heat (up to 150°C) at high efficiency (CLCF, 2013).
Liquid air is stored cryogenically (-196°C) in unpressurised insulated vessels, which can
be stationary or distributed to remote locations through established tanker and shipping
networks. The Dearman engine can be hybridised with a diesel engine or hydrogen fuel cell,
allowing exchange of waste heat and cold to improve the efficiency of both and reduce fuel
consumption (University of Birmingham, 2014).
The integration of transport with a cold energy vector which can simultaneously provide
cooling services directly, without needing to be converted to another energy form, improves
the overall system efficiency and provides a robust, distributed supply chain for temperature-
sensitive products. TRUs powered by liquid nitrogen produce no tailpipe emissions and, for
Energy Systems Integration
frozen produce, have been shown to save 56% of the CO2 emissions in India. Developing
countries with hot climates have the greatest need for such a cold economy, but little to no
cold chain infrastructure exists. The waste cold from the global LNG trade projected for 2030 is
estimated to be sufficient to provide cooling for over 4 million refrigerated trucks (University of
3 Potential benefits of
Birmingham, 2014). The development of a cold economy based on liquid air is both technically
and economically feasible and badly needed to preserve food and medicines, particularly in
the context of a warming world.
1
Well-to-wheel carbon emissions are those which occur ‘from the mining of the energy source to a vehicle being driven’ (Woo et al., 2017)
16
3.4 Cost reduction 3.5 Service Provision
In addition to the direct savings from increased A service-level view of the energy system considers
energy resource efficiency and the implicit the energy needs of all users in the system and
economic benefits from decarbonisation, wider focuses on supplying these with the appropriate
integration may offer further opportunities for cost resources. ESI presents innovation opportunities
reduction. for new businesses to develop a range of
enhanced applications and services with regards
ESI provides the opportunity to maximise the use of to transport, agriculture, space heating, cooling,
existing infrastructures and avoid redundant assets lighting, hot water, water supply, water treatment,
through whole-system planning (O’Malley et al., communications, appliances, etc.
2016). For example, CHP is estimated to save 7% of
total projected power sector investment up to 2030, For example, polygeneration systems increase the
through avoided transmission and distribution scope for new business models and consumer
system upgrades (IEA, 2008). services to be developed through access to
multiple energy vectors. Box 2 gives an example of
Through integration, energy systems with low the provision or enhancement of a specific service
storage capacities could also access the benefits through integration of thermal technology. The
of storage available in other systems. This sharing global trend towards urbanisation makes it likely
of assets is another way in which ESI can reduce that citywide solutions will dominate innovation in
whole system costs. Recent whole systems analysis this area (Keirstead and Shah, 2012).
done on the value of integrating energy storage into
the UK electricity grid (Strbac et al., 2016) shows Cities require multiple services for providing
that the flexibility this technology can provide to basic requirements such as food, water, clean air
a low carbon grid leads to great savings in both and energy, as well as mobility, healthcare and
capital expenditure and operational costs, by waste collection and treatment. More coordinated
allowing better use of existing assets and reducing approaches to providing these services, the so
curtailments, as well as delaying or avoiding the called ‘smart city’ model, will benefit from increased
need for infrastructure upgrades and expansions. integration of energy systems across dense urban
areas.
This section outlines the opportunities for By contrast, the distribution network is
energy systems integration in existing power, largely passive with a lack of communication,
gas, heating and transport infrastructure and automatic controls or real-time monitoring.
markets, as well as the respective challenges. The distribution grid is very extensive but its
principal function remains to supply electricity
4.1 The role of the power grid to end users across the network. In order to
progress to a decarbonised electrical power
Long-distance transmission can provide system in OECD countries, a smart grid with
interconnection between different energy sufficient monitoring and control will be required
systems and therefore represents an external to operate cost-effectively a mixture of variable
means of providing flexibility to an energy renewable generation, nuclear power and fossil-
system, since it makes use of adjacent energy fuel plants with CCS (Ekanayake et al., 2012).
systems through the import and export of
electricity (Thellufsen and Lund, 2017). 4.2 The role of the gas network
Several studies (Ekanayake et al., 2012, Approximately a fifth of global residential heat
Karady and Holbert, 2013) investigate the use is supplied by natural gas, mainly in OECD
of transmission to achieve flexibility through countries (Dodds et al., 2015). Gas networks
different levels of interconnection in Europe. supply natural gas to industrial, commercial and
Becker et al. (2014) present a scenario where residential consumers for space heating, water
each country meets all of its electricity demand heating and cooking (Speirs et al., 2016). Natural
through a combination of wind and solar power, gas is used widely in Northern Europe and North
transmission cables interconnect 27 countries America and in the UK and Netherlands, over
across Europe and transmission capacity is 80% of homes are fitted with gas boilers (Dodds
unrestricted. In this scenario, which is not et al., 2015).
constrained by investment costs, transmission
cables are found to reduce the total backup As a result of a decline in the UK’s natural
capacity to 15% of annual electricity gas resources, a previous policy emphasis on
consumption (compared to 24% in a scenario national self-sufficiency was replaced by a new
without interconnections between countries) focus on international trade and interconnection
Systems Integration
(Rodríguez et al., 2014;Thellufsen and Lund, with other countries enabling the integration
2017). of gas systems (Arapostathis et al., 2014;
4 Realising Energy
18
The UK also possesses two types of dedicated Nevertheless, current gas networks would
facilities for inter-seasonal gas storage (whereby require reinforcement since pipelines of the
gas is stored when prices are low in summer and same diameter and pressure drop would have a
extracted during the winter when gas is more 20%-30% lower capacity for carrying hydrogen
expensive) and fast-cycle storage (whereby in comparison to natural gas. The capacity of
gas can be stored and withdrawn at any time a hydrogen network to act as a means of gas
of the year depending on short-term market storage to meet daily peaks in gas demand
conditions), improving flexibility in the system (known as the linepack) would be less than 25%
(Bradshaw et al., 2014). of the current capacity for natural gas (given its
volumetric energy density relative to hydrogen).
At a global level, heating and cooling demand This issue could be resolved by creating
contributed to 30% of CO2 emissions in 2012 additional storage, or raising the operating
(IEA, 2015). Recent decarbonisation scenarios pressure across the network (Dodds et al., 2015).
(IEA, 2015; Shell Scenarios Team, 2013) feature
the increased use of electricity to meet heating The chemical and physical properties of
demand. However, in countries where a high hydrogen are different from natural gas and
proportion of heating is supplied by natural therefore the legislated amount of hydrogen
gas, such as the UK and Netherlands, it might which can be injected into the grid is currently
be preferable to maintain and decarbonise the limited, or modification is needed to enable
existing gas network infrastructure by injecting higher amounts of hydrogen to be distributed.
hydrogen or biomethane into the gas grid (see The volume fractions allowed vary by country,
Section 4.4). with the highest limit of 12% being in Holland,
while most countries restrict it to less than 5%
Another option in such countries is to reduce the (CHBC, 2015). Research suggests that volume
contribution of natural gas heating in the future fractions of up to 20% could be tolerated
in order to stay within carbon emissions targets. (California Hydrogen Business Council, 2015).
For example, natural gas could provide heating
only during periods of peak demand using A number of different technologies could be
hybrid gas/electric heat pumps, which could used to supply heating from hydrogen in homes.
help to avoid the need for electricity network These include fuel cell micro-CHP, direct-flame
reinforcement (Speirs et al., 2017). combustion boilers (which provide the same
function as gas boilers but burn hydrogen
A potential low-carbon transition pathway in instead) and gas heat pumps. While current
countries with established, significant gas fuel cell micro-CHP units feature built-in steam
networks would be to repurpose these networks methane reformers to extract hydrogen from
Systems Integration
for use with hydrogen (discussed in more detail natural gas, fuel cells could in the future be
in Section 4.4). Some existing high-pressure
4 Realising Energy
4.3 The role of district heating Reddy, 2013). Low carbon heat sources are
networks also increasingly being incorporated into DH
networks, particularly in some Scandinavian
A district heating (DH) system comprises an countries. These energy sources include waste
energy source for the production of heat, a heat, biomass, heat pumps and solar thermal
network for distributing the heat to buildings (Hanna et al., 2016).
and more than a single end-user. In contrast
to individual systems for heating or cooling in Modern low temperature DH systems are more
buildings, a DH system needs to be designed energy efficient than previous generations of
to consider local energy sources, heating and DH, and can incorporate diurnal or seasonal
hot water requirements of all end-users and storage, particularly where the heat sources are
the location of energy suppliers in relation to of an intermittent nature e.g. industrial waste
customers (Olsthoorn et al., 2016). heat, solar thermal and heat pumps (Olsthoorn
et al., 2016). Most CHP plants in Denmark have
DH systems have the flexibility to integrate a short-term storage tanks to store heat for
variety of heat sources, which can vary from several hours of heat demand, thereby allowing
region to region depending on local resources the design of smaller plants which can operate
and climate. A DH system can improve the fuel at full capacity (Harris, 2011; Olsthoorn et al.,
utilisation factor in regions where electricity 2016; Toke & Fragaki, 2008). A case study on
is generated predominantly from natural gas the potential ESI capability of a DH system in
or coal (Olsthoorn et al., 2016; Srinivas and Denmark is presented in Box 2.
Systems Integration
4 Realising Energy
20
» BOX 2: Case Study: District Heating in Copenhagen, Denmark
Copenhagen’s district heating system is one of the oldest and most successful
implementations of district heating in the world, demonstrating the technology’s versatility,
waste use and low cost. The system supplies 97% of the city with clean, reliable and
affordable heating, maintaining a low heating price throughout the project’s lifetime.
The system substantially reduces emissions of carbon and a number of pollutants.
The system was proposed in 1984 by five mayors in the city of Copenhagen in Denmark, based
on an older waste-to-heat system, implemented in Frederiksberg in 1903.
The state-of-the art Avedøre units were built in 1990 and 2001. A lack of available space for
landfill waste and the coincidental energy needs of a locally constructed hospital was solved
by the Frederiksberg waste incineration and CHP plant, supplying power, heat and hot water.
Its success and over 80 years of experience gained through its running led to the choice of this
system for supplying the needs for most of the greater Copenhagen area. Regulatory changes,
such as a new heat supply act encouraging municipalities to work together and enforcing
household uptake of CHP in 1979, as well as a tax break for CHP in the mid-1980s, provided
good incentives for the implementation of this clean technology. Central authorities facilitated
the process, issuing guidelines, supervision and approval of plans, while the municipalities
consulted with energy utilities and experts to develop the plans.
The system consists of 10 CHP power plants with waste incinerators and over 50 peak load
boiler plants connected into one large pooled system, operated by more than 20 distribution
companies and producing a total of 30,000 TJ of heat.
Water captures the heat and is pumped directly into homes through a 1,300 km network
of pipes. CTR’s digital operations centre is in Frederiksberg and regulates, optimises and
monitors the system through automation. The CTR and VEKS networks are interconnected,
so that they can balance each other.
In addition, any excess heat from both networks is exported to the rest of Denmark. About
30% of the heat is obtained from refuse incineration and the rest is met by geothermal energy
and a range of fuels, including wood pellets, straw, natural gas, oil and coal. From 1995 to
Systems Integration
2000, the CHP plants switched from coal to natural gas and sustainable biofuels to further
4 Realising Energy
The Avedøre plant, built in 2001, is a multi-fuel unit powered by 50% carbon-neutral biofuels
and can produce 570 MW power and 570 MW heat. The district heating network supplies
clean, reliable and affordable heating to 97% of a 50 million m2 region, covering Copenhagen
and a number of surrounding municipalities. Average annual household bills have been
reduced by €1,400, in comparison to homes that use oil heating, and emissions of CO2 and
sulphur dioxide have been dramatically reduced compared to the original system.
21
Unlocking the potential
of Energy Systems Integration
4.4 The potential role of The linepack in the UK natural gas network
hydrogen enables a large energy storage capacity
(Abeysekera et al., 2016). It has been estimated
Hydrogen is an easily transferable vector for that all excess renewable energy currently in
both heating and transport. Existing natural Europe could be absorbed using this pathway
gas infrastructure and markets could be (FCHJU, 2015).
converted for use with hydrogen (Dodds et al.,
2015). As an interim measure, hydrogen could
4.5 The role of transport
be injected into the gas grid instead of (or in
combination with) biomethane, to achieve After electricity and heat, the transportation
partial decarbonisation of gas heating. However, sector is the third biggest emitter of CO2,
wholesale replacement of natural gas supply accounting for 23% of global CO2 emissions (IEA,
with hydrogen would require the replacement of 2015). Transportation is a very energy-intensive
existing burner heads in all appliances designed sector, with 85% of this energy coming from
for use with natural gas. oil-based fuels, while a significant portion of the
energy demand relates to road transport and
The production of hydrogen for industrial
personal vehicles.
purposes is well established, whereas its use as
an energy vector is restricted mainly to fuelling Decarbonisation of this sector remains a
spacecraft (Dodds et al., 2015). Steam methane significant challenge which can only be
reformation of natural gas is the dominant addressed by a greater uptake of ultra-low
method of producing hydrogen at present, emission vehicles (ULEVs), and the integration
but hydrogen could be produced through of low-carbon energy vectors such as electricity,
electrolysis of water using low-carbon electricity. biofuels and hydrogen. Additionally, ESI may
facilitate decarbonisation of transport through
However, given the comparative expense of
the development of cold supply chains (see also
low-carbon electricity, more cost-competitive
Box 1).
alternatives might be to use fossil-fuel or
biomass power plants equipped with CCS to Electro mobility (e-mobility), incorporating
generate electricity for hydrogen production battery electric vehicles (BEVs) and fuel cell
(Dodds et al., 2015). electric vehicles (FCEVs), employs efficient,
electric-powered drivetrains and produces no
As discussed in Section 2.2.3, power-to-gas
emissions. In BEVs, all the energy is stored in
(P2G) technology for the production of hydrogen
the on-board rechargeable battery, which can be
is technically mature, can provide rapid flexibility
plugged into the grid. In FCEVs, a fuel cell stack
with sub-second response times and long
Systems Integration
of scales and locations. There are also various forms of plug-in hybrid,
including extended-range vehicles, which
Some research bodies have suggested that
employ both an electric motor and an internal
deep decarbonisation by 2050 is only possible
combustion engine to propel the car. EVs could
if hydrogen plays a major role in the long
also have a significant role in improving urban
term (FCHJU, 2015; Ribera and Sachs, 2015).
air quality, reducing primary energy waste and
The use of electrolytic hydrogen as an energy
diversifying the supply of primary energy in
storage option in the gas grid, transportation or
transportation (O’Malley et al., 2016).
industrial sectors provides an effective way to
absorb excess energy and is a key application
for this technology (Qadrdan et al., 2015; Patel,
2012; Schoenung, 2011).
22
Electrified transport makes use of existing
infrastructure, but a charging infrastructure is
required and the additional load incurred even
with just 30% uptake of EVs, can lead to up to
7% higher national demand peaks (van Vliet et
al., 2011; ETI, 2016).
5 Policy, Modelling
and Research Opportunities
carriers) (Abeysekera et al., 2016). To a large between heat and electricity markets because
degree, electricity and gas supplies remain they may lead to energy prices which are
compartmentalised in national markets with artificially imbalanced (IEA, 2014).
insufficient physical interconnections.
Although different countries in the EU, the USA,
Innovation in the design of markets, policies China, Japan, Russia and Brazil have designed
and regulation may be required to facilitate and implemented energy policies to support the
coordination between different energy systems deployment of CCHP, significant regulatory, market
and realise the potential benefits of energy and financial barriers remain. In particular, a
systems integration (Abeysekera et al., 2016). technical standard for net metering interconnection
In order to effectively design markets and needs to be developed, together with guidelines
regulation to support energy system integration, on the role of distributed energy production in the
decision makers require objective information energy supply network as a whole (Jradi and Riffat
2014).
24
5.2 Modelling Opportunities From the review, the authors (Ibid.) classify the
energy tools into different types that include the
Powerful simulation and optimisation tools are following:
required to consider the various complexities
of integrating energy systems and carry out » Simulation tools model how an energy system
operational and planning analysis across operates in order to supply particular energy
technical, economic, energy efficiency and demands. They are typically run at hourly time-
environmental objectives. Different models are steps over a period of one year.
designed to address different scales and types
» Operation optimisation tools are typically also
of energy systems integration, from integrating
simulation models and optimise the operation
renewable energy at a national level to a focus
of a particular energy system.
on distributed generation at a community level
and for individual buildings (Mancarella, 2014). » Scenario tools aggregate a series of years into
a long-term scenario. They usually combine
A review of 37 different computer tools used for
one year time-steps into a scenario of 20-50
the analysis of renewable energy integration in
years.
energy systems found they vary considerably.
Particularly in terms of their scientific objectives, » Investment optimisation tools are typically
technologies considered, time parameters also scenario tools and optimise investments
applied and energy sectors and systems in an energy system, such as new power
within which renewable energy was integrated stations and technologies.
(Connolly et al., 2010).
Table 1 compares the characteristics of some RETScreen can assess initial techno-economic,
typical simulation tools used for modelling environmental and financial aspects of energy
energy systems integration. These models and projects at a low time resolution of monthly time
their comparative capabilities are considered in steps (e.g. system balancing in an integrated
detail by Mancarella (2014) and relevant parts of system with renewable energy, storage and
this assessment are highlighted here. demand response).
Method: The authors have developed a model called REMod-D (Renewable Energy
ModelDeutschland) which seeks to minimize total annual costs by optimizing the sizing of
energy producers, converters, storage devices and consumers (Palzer and Henning, 2014).
26
» B OX 3: Continued
The study investigates different scenarios which meet German space heating, hot water and
electricity demand with 100% renewable supply. These scenarios include different conditions
to evaluate separately the influence of electricity imports, a certain percentage of fossil fuel
use and energy retrofit interventions in buildings.
REMod-D generates hourly energy balances for the integration of electricity and heat
resources (an example output is shown in Figure 1). The model includes five different types
of energy storage: pumped hydro-power storage and batteries, gas storage (typically in large
caverns), power-to-gas (from renewables) and centralized / decentralized heat storage.
FIG 1: ELECTRICITY GENERATION AND USE DURING A SUMMER WEEK: EXAMPLE REMOD-D OUTPUT
(CHP=COMBINED HEAT AND POWER; PHPS=PUMPED HYDRO-POWER STORAGE; HP=HEAT PUMP)
Findings: The results indicate that it is technically feasible to supply the electricity and heat
sectors in Germany with 100% renewable energy and that the total annual cost would be
comparable to current costs following energy system transformation. The modelled future
energy system relies upon long-term storage capacity and some renewable gas production
during hours with low wind, solar PV or hydroelectric generation.
Limitations and research gaps: The model used in this study does not represent the whole
energy system – it covers the electricity and heat sectors, equivalent to approximately 62%
of Germany’s current energy demand.
Unlocking the potential
of Energy Systems Integration
28
6 Conclusions
This report has considered the role of increased structures and moves towards a model of
energy systems integration in transitioning to low providing energy services such as heat, light or
carbon, more flexible, resilient and reliable energy mobility across the system.
systems. It has identified different opportunities
presented by energy systems integration and the » Innovation in the design of markets, policies and
role of various energy distribution infrastructures, regulation is required to facilitate coordination
transport, markets and modelling tools. between different energy systems and realise the
potential benefits of energy systems integration.
Such opportunities include cross-vector integration, Market arrangements will need to be changed
the incorporation of flexibility services in the so that they reward new and different types of
energy system such as interconnectors, flexible flexibility, e.g. by improving the business case
generation, storage and demand-side response for power companies to invest in conventional
and the embedding of smart technologies in generation technologies which have been
interdependent energy systems for more accurate modified to significantly enhanced flexibility.
prediction of weather events and faster response to
power outages. » Research into the benefits of enabling
technologies, such as energy storage, microgrids
Diversifying energy sources and increasing cross- and demand-side response, has tended to
vector integration and flexibility can strengthen consider single technologies or a single service
the energy system, improving both reliability and from these technologies, rather than a hybrid
resilience, while the integration of storage and portfolio. More studies which quantify the
greater flexibility in the electricity grid can avoid multiple services enabled by using technologies
the costs of building, extending and maintaining and systems together are needed to showcase,
distribution infrastructure. quantify and validate the benefits of co-operative,
integrated deployment and design suitable
6.1 Key points compensation mechanisms for these services.
» Potential benefits of ESI include more efficient There are many challenges involved in realising the
use of energy resources, especially in capturing potential of greater energy systems integration.
and using waste heat, aiding decarbonisation These include, but are not limited to, the complexity
by enabling electricity and lower-carbon of highly integrated energy systems, a need to
fuels to provide energy services traditionally overcome the fragmented nature of institutions
provided by higher-carbon sources and increase and market structures in different energy sectors
system security and resilience by allowing the and the multidisciplinary efforts in research and
incorporation of a more diverse set of energy development that will be required to bring about
a fully integrated, low carbon energy system.
6 Conclusions
sources.
Traditional market structures for the energy sector
» Integration of energy systems may occur at are fragmented and require careful redesign to
various scales, linking different energy sources, ensure that the overall system’s needs are met,
technologies and services from individual low carbon technologies are favoured and all
buildings and customers through to community, participants have access to revenue streams. These
city, regional, national and international scales. challenges open up new avenues for research and
their solutions require a new approach, involving
» ESI can also provide opportunities for new
multidisciplinary expertise and holistic analysis of
business models, innovation and market
the entire system.
Unlocking the potential
of Energy Systems Integration
7: List of Acronyms
30
8 Annex: Methodology:
The Rapid Evidence Review approach
The review of literature presented in this briefing Evidence has been identified through keyword
paper follows a rapid evidence assessment (REA) searches of two databases: Elsevier Science
approach developed by the UK Energy Research Direct (for academic literature) and Google (for
Centre (Speirs et al., 2015). For the purposes of grey literature), using Boolean combinations of
this study, an REA was carried out to establish relevant terms. Google was employed as a first
what evidence is available in academic and grey step in identifying grey literature and specific
literature on different types of ESI and their websites which host relevant material.
role in facilitating decarbonisation, increased
flexibility and higher penetrations of renewables
in current and future energy systems. The REA
also set out to extract benefits, opportunities,
challenges and policy gaps related to ESI.
TABLE A1: KEYWORDS USED TO IDENTIFY RELEVANT LITERATURE IN SCIENCE DIRECT AND GOOGLE
joined-up
energy pathway market
synerg*
power* thermal
cross*
“energy waste
system” interface
storage holistic
batter* whole
vehicle multi-scale
infrastructure nexus
interconnector aggregat*
grid
network
smart
Unlocking the potential
of Energy Systems Integration
For the database searches, technology/ Following the filtering of retained search
infrastructure keywords were combined with results, key descriptive information relating
vector, demand, ESI and intended outcome to the criteria for relevance was captured. The
keywords identified from a preliminary search geographic scope of the evidence considered
of literature related to ESI, variables renewables was global, but with a focus on OECD countries.
and decarbonisation (see Table A1). Returned Three ‘real world’ and three ‘modelling’ case
results were filtered for relevance based on their studies were selected from the review of the
title and abstract. If this was not sufficient to literature to demonstrate current, emerging and
determine relevance, further inspection of the potential future examples of energy systems
main text was performed. integration ranging from building scale, through
to national scale and integration of small island
The criterion for relevance was that, in relation energy systems.
to energy systems integration, the document
considers some or all of the elements: In addition to the keyword searches of literature
databases, evidence considered to be relevant
» Current and potential types of ESI in according to the above criteria has been
development or in an early stage of gathered from key research organisations
deployment and their purpose and role in working in the field of energy systems
current and future energy systems integration, in particular:
» Benefits of implementing additional or » National Centre for Energy Systems
enhanced types of ESI, over and above Integration, Newcastle University
existing forms of ESI
The Rapid Evidence Review approach
32
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38
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