Green Energy and Technology Daphne Mah Peter Hills Victor O. K. Li Richard Balme Editors Smart Grid Applications and Developments Green Energy and Technology For furthervolumes: http://www.springer.com/series/8059 Daphne Mah Peter Hills • • Victor O. K. Li Richard Balme • Editors Smart Grid Applications and Developments 123 Editors DaphneMah Victor O.K.Li Department of Geography Department of Electricaland Electronic Hong KongBaptistUniversity Engineering Hong Kong The Universityof HongKong People’s Republic ofChina Hong Kong People’s Republic ofChina Peter Hills The KadoorieInstitute Richard Balme The Universityof HongKong Paris Schoolof International Affairs Hong Kong andCentre d’Etudes Europeennes People’s Republic ofChina Sciences Po Paris France ISSN 1865-3529 ISSN 1865-3537 (electronic) ISBN 978-1-4471-6280-3 ISBN 978-1-4471-6281-0 (eBook) DOI 10.1007/978-1-4471-6281-0 Springer LondonHeidelberg New YorkDordrecht LibraryofCongressControlNumber:2014944724 (cid:2)Springer-VerlagLondon2014 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation,broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionor informationstorageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilar methodology now known or hereafter developed. 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While the advice and information in this book are believed to be true and accurate at the date of publication,neithertheauthorsnortheeditorsnorthepublishercanacceptanylegalresponsibilityfor anyerrorsoromissionsthatmaybemade.Thepublishermakesnowarranty,expressorimplied,with respecttothematerialcontainedherein. Printedonacid-freepaper SpringerispartofSpringerScience+BusinessMedia(www.springer.com) Acknowledgments Thisbookisverymuchacollaborativeeffort.Wewishtoextendspecialthanksto allourcontributingauthorsforcontributingcomplementaryknowledgefromtheir areasofexpertise,forbeingsoresponsivetoourrequests,andforsubmittingtheir work in a timely manner. This has certainly made our task as Editors that much easier. WealsowishtothankthestaffatSpringerforsupportingourinitialconceptfor the book, for guiding us through the process of compiling the manuscripts, and providing assistance in the production of this book. WeowespecialthankstoMs.KabooLeung,whowasaresearchassistantinthe KadoorieInstitute ofthe Universityof Hong Kong and latterly inthe Department of Geography at Hong Kong Baptist University, for her excellent support throughoutthepreparationofthebook.Withouthercontinuousassistanceandher attention to detail it would have been difficult to complete the project. We would also like to record a special note of appreciation for the project funding received from the Hong Kong Baptist University (through Faculty ResearchGrantsfromthe Faculty ofSocial Sciences)andthe UniversityofHong Kong (through the Initiative on Clean Energy and Environment). These grants helped to fund the research on which several of the chapters are based. Finally, we gratefully acknowledge the general support that we have received from the University of Hong Kong, Hong Kong Baptist University, and Sciences Po which has allowed us to develop and extend our work on smart grids. July 2014 Daphne Mah Peter Hills Victor O. K. Li Richard Balme v Contents Part I Introduction Introduction and Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Daphne Mah, Peter Hills, Victor O. K. Li and Richard Balme A Holistic View on Developing Smart Grids for a Low-Carbon Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 John W. M. Cheng Part II Technical Characteristics of Smart Grid Status and Prospects of European Renewable-Based Energy Systems Facilitated by Smart Grid Technologies . . . . . . . . . . . . . . . . 47 Yi Ding, Jacob Østergaard, Poul Ejnar Sørensen, Peter Meibom and Qiuwei Wu Arcturus: An International Repository of Evidence on Dynamic Pricing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Ahmad Faruqui and Sanem Sergici Microgrids and Distributed Energy Future . . . . . . . . . . . . . . . . . . . . 75 Jin Zhong and Yuqian Song Communication and Network Security Requirements for Smart Grid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Victor O. K. Li Part III Stakeholders in Perspectives: Interests, Power and Conflict Smart Grids: The Regulatory Challenges. . . . . . . . . . . . . . . . . . . . . . 115 Daphne Mah, Kaboo Po-yi Leung and Peter Hills vii viii Contents i-Energy: Smart Demand-Side Energy Management. . . . . . . . . . . . . . 141 Takashi Matsuyama Switching Perspectives: Creating New Business Models for a Changing World of Energy. . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 Michael Valocchi, John Juliano and Allan Schurr Part IV International Case Studies Smart Transmission Grids Vision for Europe: Towards a Realistic Research Agenda . . . . . . . . . . . . . . . . . . . . . . . . 185 Luigi Vanfretti, Dirk Van Hertem and Jan Ove Gjerde Comparison of Smart Grid Technologies and Progress in the USA and Europe. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221 M. Godoy Simões, R. Roche, E. Kyriakides, S. Suryanarayanan, B. Blunier, K. McBee, P. Nguyen, P. Ribeiro and A. Miraoui Towards Sustainable Energy Systems Through Deploying Smart Grids: The Japanese Case. . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 Amy Poh Ai Ling Governing the Transition of Socio-technical Systems: A Case Study of the Development of Smart Grids in Korea . . . . . . . . 259 Daphne Mah, Johannes Marinus van der Vleuten, Jasper Chi-man Ip and Peter Hills Developing Super Smart Grids in China: Perspective of Socio-technical Systems Transition. . . . . . . . . . . . . . . . . . . . . . . . . 279 Yuan Jia-Hai Exploring the Value of Distributed Energy for Australia . . . . . . . . . . 303 William Lilley, Luke Reedman and Anthony Szatow Part V Postscript Postscript . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331 Daphne Mah, Peter Hills, Victor O. K. Li and Richard Balme About the Editors Richard Balme is Professor and Scientific Director for the Master in Interna- tionalPublicManagementattheParisSchoolofInternationalAffairs(PSIA),and Senior Fellow at the Centre for European Studies of Sciences Po. He is also Visiting Professor at the School of Public Policy and Management, Tsinghua UniversityinBeijing.Heteachespublicpolicyanalysis,comparativepolitics,and international relations. Among his publications are European Governance and Democracy: Power and Protest in the European Union, (with D. Chabanet, Rowman and Littlefield 2008) and Europe–Asia Relations: Building Multilater- alisms, (with B. Bridges, Palgrave, 2008). His recent research is focused on comparative environmental governance. PeterHills iscurrentlyChairProfessorintheKadoorieInstituteattheUniversity of Hong Kong. He joined the University in 1982 from the University of Nottingham,wherehewasaLecturerfor6years.HewasformerlyDirectorofthe Kadoorie Institute (2008–2012), and prior to that Director of the Centre of Urban Planning and Environmental Management (1989–2008). He has been actively involved inenergy-relatedresearchsince thelate 1970sandhas publishedwidely onsuchtopicsasthecoalindustryintheUnitedKingdom,offshoreoilandgasin China, national energy planning in Asia, the environmental impacts of energy systems,andglobalclimatechange.Hehasservedasaconsultantonenergyissues to various international agencies including the Asian Development Bank, the UN Economic and Social Commission for Asia and the Pacific, the International LabourOffice,andtheAsiaandPacificDevelopmentCentre.Hehasalsoservedas a member of government energy advisory bodies in Hong Kong. VictorO.K.Li receivedSB,SM,EE,andScDdegreesinElectricalEngineering and Computer Science from MIT in 1977, 1979, 1980, and 1981, respectively. He is Chair Professor of Information Engineering and Head of the Department of Electrical and Electronic Engineering at the University of Hong Kong (HKU). He has also served as Assoc. Dean of Engineering and Managing Director of VersitechLtd.,thetechnologytransferandcommercialarmofHKU.Heservedon theboardofChina.comLtd.,andnowservesontheboardofSunevisionHoldings Ltd. and Anxin-China Holdings Ltd., listed on the Hong Kong Stock Exchange. Previously, he was Professor of Electrical Engineering at the University of Southern California (USC), Los Angeles, California, USA, and Director of the ix x AbouttheEditors USC Communication Sciences Institute. Sought by government, industry, and academic organizations, he has lectured and consulted extensively around the world. He has received numerous awards, including the PRC Ministry of Educa- tion Changjiang Chair Professorship at Tsinghua University, the UK Royal Academy of Engineering Senior Visiting Fellowship in Communications, the Croucher Foundation Senior Research Fellowship, and the Order of the Bronze Bauhinia Star, Government of the Hong Kong Special Administrative Region, China. He is a Registered Professional Engineer and a Fellow of the IEEE, the IAE, and the HKIE. Dr.DaphneMah iscurrentlyAssistantProfessoratDepartmentofGeographyof HongKongBaptistUniversity(HKBU)andanHonoraryAssistantProfessoratthe Kadoorie Institute at the University of Hong Kong (HKU). Dr. Mah obtained her M.Sc.degreeinEnvironmentalManagementfromtheUniversityofNottinghamin the UK, and completed her Ph.D. study in2010 at HKU, investigatingthe role of local states, policy capacity, and the development of wind energy policies in Xinjiang,ShanghaiandGuangdong.BeforejoiningHKBUin2012,Dr.Mahwasa journalistinMingPaoDailyNews, thehead ofthecampaignsteamofFriendsof theEarth(HongKong),aseniorresearchassociateandapart-timelectureratCity University of Hong Kong, a post-doctoral research fellow and a lecturer at HKU. About the Contributors BenjaminBlunierstudiedElectricalEngineeringattheUniversityofTechnology of Belfort-Montbéliard (UTBM), France where he received the M.Sc. and Ph.D. degreesin2004and2007,respectively.Hestudiedfuelcellsystemsmodelingand especiallytheirairmanagementandcontrolforhybridandelectricvehicles.Since 2008, he has been an associate professor at UTBM. His current research interests include fuel cells systems, electric, hybrid and plug-in hybrid vehicles, and intelligent energy management in smart grids and micro-grids. John W. M. Cheng received his B.Eng. (Sask.), M.Eng. (McGill), and Ph.D. (McGill) in Canada. He has over 20 years of industrial and research experiences including low-carbon technologies, climate change and impacts to electric sys- tems, energy and environmental policies, smart grids, energy storage, equipment health monitoring,renewables resource assessment andintegration, power system reliability, military systems, and dispatcher training simulator. Dr. Cheng is a registered Professional Engineer (P.Eng.) in Ontario, a member of HKIE, IEEE, and CIGRE. He has also been serving as the secretary of WEC-Hong Kong since 2010. Yi Ding is an Associate Professor in the Department of Electrical Engineering, TechnicalUniversityofDenmark(DTU),Denmark.BeforehejoinedDTU,hehad held academic and research positions in University of Alberta, Canada and Nanyang Technological University. His research interests include power systems reliability/performance analysis incorporating renewable energy resources, smart grid performance analysis, and engineering systems reliability modeling and optimization. Ahmad Faruqui is a Principal with The Brattle Group which specializes in analysesandstrategyrelatingtothecustomer.Hehashelpeddesign,monitor,and evaluateenergyefficiencyinvestmentsforawiderangeofelectricandgasutilities and testified before a dozen state and provincial commissions and legislative bodies. He has also worked for the Alberta Utilities Commission, Edison Foun- dation, the Edison Electric Institute, the Electric Power Research Institute, the FederalEnergyRegulatoryCommission,theOntarioEnergyBoardandtheWorld Bank. His work has been cited in publications such as The Economist, The New York Times, and USA Today, and he has appeared on Fox News and National xi