by Julia Riemer | Mar 1, 2022 | Automotive Industry, Future Trends, Market development & Trends, New Mobility
Energy management and balancing
Energy management is the combination of all measures that ensure minimum energy use for a required performance. It relates to structures, processes and systems, as well as human behavior and changes. We will also speak about the topic of balancing, which ties into that.
For example, energy management is used as a means to control and reduce a building’s energy consumption, allowing owners and operators to:
Reduce costs – energy accounts for 25% of all operating costs in an office building.
Reduce carbon emissions to meet internal sustainability goals and regulatory requirements.
Reduce risk – the more energy you use, the greater the risk that energy price increases or supply shortages could seriously impact your profitability. Energy management solutions can help to reduce this risk by lowering your energy demand and managing it to be more predictable.
The German Federal Network Agency has adopted rules that make it easier for renewable energy producers to provide balancing energy. But what exactly is balancing energy and what do the rules mean?
Balancing energy: On the way to more energy efficiency
To keep a scale in balance, the left and right pan must contain exactly the same mass. If you add weight to one pan or take weight away from it, you have to do the same with the other pan, otherwise the balance will not be in equilibrium.
The same principle applies to the way our power grid works: power generation and consumption must be in balance at all times. To keep our grid stable, electricity generation must increase when electricity consumption increases. And when consumption decreases, electricity generation must be reduced.
When it comes to ensuring the stability of the grid, generation plants such as wind turbines and consumers such as large industrial companies play an important role. In Germany, power generation plants and consumers are organized in balancing groups. A balancing group is a virtual energy account managed by an “accountant” – the balancing group manager. This person predicts how much electricity will be generated and consumed in his balancing group. But there are times when the predictions don’t come true. For example, when a power plant is suddenly taken off the grid, when there is no wind for the turbines, or when there is an unexpected increase in electricity consumption. In these cases, there is either too much or too little electricity in the grid and the balance group has to restore the balance. This is where balancing energy comes into play.
Three types of balancing energy
To increase or decrease the amount of electricity in the grid, transmission system operators buy balancing power from generation plants that can supply electricity at short notice. To make this work well, transmission system operators hold auctions in which plant operators are asked to bid for the amount of electricity they can supply or take from the grid at short notice in an emergency. For example, power plant operators can reduce the amount of electricity they feed into the grid, while consumers can increase the amount of electricity they buy.
There are three types of balancing power:
- Primary balancing energy means that the system operator must provide the agreed quantity of electricity within 30 seconds of the request.
- Secondary balancing energy means that the agreed amount of electricity must be provided within 5 minutes.
- Minute reserve (tertiary balancing energy) means that the agreed quantity of electricity must be made available within 15 minutes.
The German Federal Network Agency has decided that the rules applied by transmission system operators in control energy auctions must be changed for the second and third types of control energy. Previously, system operators had to guarantee that they would be able to provide a certain amount of secondary control energy one week in advance. Auctions for minute reserve energy were held on weekdays, but not on weekends. Therefore, plant operators had to declare on Fridays that they could provide a certain amount of power for the weekend and the following Monday. For power plants that can easily adjust their power generation, such as coal-fired and other conventional plants, this process did not pose much of a problem. However, for wind and solar plant operators, it was very difficult to predict the amount of electricity they would be able to supply over such a long period of time because the amount of electricity they generate varies greatly and depends on weather conditions.
Now renewable energy producers can also provide balancing power
In order to strengthen the role of renewable energy producers in the provision of balancing energy and to support them in competition with fossil power plants on the balancing energy market, the auctions for secondary balancing energy and minute reserve now take place throughout the week, from Monday to Sunday. Bidders no longer have to keep secondary control energy on standby 12 hours a day – 7 days a week – but only 4 hours. And the minimum amount of power that must be provided has also been reduced: instead of five megawatts, plant operators must provide only one megawatt.
These changes mean that wind and solar plant operators can now forecast their power generation more accurately, taking into account current weather conditions, and participate in daily balancing power auctions. In addition, the change from five to one megawatt means that operators of smaller plants can now also contribute to the provision of balancing energy.
Grid Control Cooperation (GCC)
In Germany, there are four transmission system operators responsible for balancing the generation and consumption of electricity. Since May 1, 2010, these four transmission system operators have been working together under the Grid Control Cooperation (GCC). Whereas in the past situations arose where a power surplus in one grid area and a power deficit in another were balanced independently, now imbalances are balanced within the grid areas themselves and only total deviations are balanced, provided the necessary transmission capacities are available. This balancing within the GCC saves control energy and thus overall costs.
International grid cooperation (IGCC)
In recent years, the GCC has been continuously expanded beyond the borders of Germany. Meanwhile, Denmark, the Netherlands, Switzerland, the Czech Republic, Belgium, Austria and France are also members of the IGCC. To exchange energy across borders, no small transmission capacities are kept at the borders. Instead, spare capacity that is still available after intraday trading is used and less control energy is used through the IGCC without reducing the provision of control reserves. Nevertheless, this additional netting saves tens of millions annually.
Balancing in the automotive industry
Balancing is also used in the automotive industry. By balancing the energy in a closed system, an attempt is made to make it more efficient and durable. It does not matter whether the balancing takes place within a battery, an e-vehicle or a power grid:
Battery
The battery may have inaccuracies due to deviations of the individual components. Some cells therefore discharge faster than others. This can lead to deep discharge or overcharging of individual cells or the entire battery and thus to destruction of the storage device.
E-vehicles
A vehicle has many consumers, some of which must be supplied simultaneously. In order to fulfill this task, the battery management system (BMS) must observe several areas in parallel, compare them and create forecasts in order to prevent potential damage to the vehicle or the battery.
Power grid
Our power grid is similar to an electric vehicle, the only difference being that it has more than one source feeding energy into it. To ensure grid stability, deviations between power generation and consumption must be balanced. The increasingly popular idea of a smart grid can be compared to a BMS. The BMS would be the control center and the storage our grid.
We at magility will continue to keep an eye on developments in energy management.
Do you have any questions? Then feel free to contact us. Also follow us on LinkedIn to stay up to date.
by Julia Riemer | Feb 7, 2022 | Automotive Industry, Future Trends, Market development & Trends, New Mobility
Synthetic fuels – Energy for the future
In order to achieve the climate targets, CO2 emissions from transport will additionally have to be reduced significantly in the coming decades. In addition to electromobility, highly efficient combustion engines powered by synthetic fuels (so-called e-fuels) are a promising way forward.
Synthetic fuels are generally seen as a technology that will play an important role in achieving net zero in the transport sector. Terms such as “biofuel,” “synfuel,” and “e-fuel” are often used interchangeably. However, the various types of synthetic fuels differ significantly in terms of their production, scalability, and sustainability. Synthetic fuels are liquid fuels that have essentially the same properties as fossil fuels, but are produced artificially. They can be used in the same way as fossil fuels, which are used all over the world. For example, it is possible to make synthetic jet fuel, diesel or gasoline for conventional planes, ships, trucks and cars. The main difference between fossil and synthetic fuels is how they are produced: Fossil fuels are created over millions of years underground from organic material that is converted into coal, natural gas or oil. Synthetic fuels are produced by mimicking these natural processes from renewable resources.
Production of renewable synthetic fuels
To understand the production of renewable synthetic fuels, it is necessary to know what fossil fuels are made of: Simply put, they are made up of chains of the elements hydrogen (H) and carbon (C). In other words, they are made up of hundreds of different hydrocarbon molecules.
The key to producing synthetic fuels is synthesis gas (syngas), a mixture of hydrogen (H) and carbon monoxide (CO). Syngas is the universal building block needed to make any type of liquid hydrocarbon fuel such as jet fuel, diesel, or gasoline. The conversion of syngas to fuel is an established industrial process that has been used on a large scale for decades, using coal and natural gas as feedstocks. However, this is again unsustainable. And this is where the challenge lies: producing syngas sustainably. A large amount of energy is needed to produce syngas. To produce it sustainably, this energy must come from a renewable resource such as biomass, sun, wind or water.
What conversion steps and processes create alternative fuels from input materials and energies? Not all alternative fuels are automatically renewable or synthetic fuels. The following graphic breaks down in detail the generation paths along the conversion steps of input energies to fuel:
Image: production path for alternative fuels (Source: NOW GmbH)
What are the types of renewable synthetic fuels?
To date, there are three known methods for producing renewable syngas and thus climate-friendly synthetic fuels: Biofuels produced from biomass, e-fuels produced with renewable electricity, and solar fuels produced with solar heat. All three processes primarily use syngas, a mixture of hydrogen and carbon monoxide. The syngas is then converted into liquid fuels via industrial gas-to-liquid processes. For this reason, these three processes are sometimes referred to as “biomass-to-liquid,” “power-to-liquid,” and “sun-to-liquid,” respectively.
Biomass-to-Liquid produces biofuels
While there are several processes for converting biomass into liquid fuels, the most scalable and versatile in terms of feedstock is biomass gasification, also called “biomass-to-liquid”. More specifically, biomass is converted into syngas at high temperatures. The heat input required for the process is usually generated by burning some of the biomass itself. Feedstocks can be cultivated plants (i.e., energy crops such as corn or sugarcane), algae or waste biomass. Biofuels are the only type of renewable synthetic fuel already available on the market in small quantities. They are often criticized because they compete with the food industry for arable land, consume water, and have limited scalability.
Image: Biomass-to-Liquid produces biofuels (Source: Synhelion)
Power-to-liquid generates e-fuels
E-fuels are produced from renewable electricity such as solar, wind or hydro power. The power-to-liquid process is based on a series of energy conversion steps. First, renewable electricity is generated, which then drives an electrolyzer that splits water into hydrogen and oxygen. Next, the hydrogen is mixed with carbon dioxide and converted to syngas via reverse water gas shift (RWGS) – a process that occurs at high temperatures and is powered by electricity. Several projects are planned, but so far there is no industrial e-fuel plant, which also means that e-fuels are not yet available on the market. E-fuels can be produced with any type of renewable electricity, so theoretically they could be produced anywhere in the world. However, electricity storage for continuous operation remains a challenge, limiting application to a few regions with an exceptionally cheap and continuous supply of renewable electricity, or requiring the integration of expensive battery technology.
Image: Power-to-Liquid generates e-fuels (Source: Synhelion)
Sun-to-Liquid produces solar fuels
Solar fuels are produced from solar heat, which drives a thermochemical reactor. This process is also known as “sun-to-liquid”. In the reactor, carbon dioxide and water are converted into synthesis gas. Until now, solar fuels are not yet available on the market. Sunny regions offer ideal conditions for the production of solar fuels, especially deserts and semi-arid regions with high solar radiation. Solar heat generated during the day can be stored by low-cost thermal energy storage, enabling fuel production round-the-clock. Storage makes solar fuel plants self-sufficient and independent of a grid, so they can be deployed quickly and on a large scale.
Image: Sun-to-Liquid produces solar fuels (Source: Synhelion)
Where can synthetic fuels be used?
Synthetic fuels are very compatible with the existing global fuel infrastructure. They can be used in conventional internal combustion engines and jet engines, which means that normal cars, aircraft and ships can be fueled with synthetic fuels without having to replace or convert them. They can also use existing fuel infrastructure for storage and distribution.
Renewable synthetic fuels are widely seen as a solution for decarbonization, particularly of those transportation sectors that cannot be electrified. Long-distance transport requires energy carriers with a very high energy density and will therefore continue to rely on liquid fuels. Batteries are too heavy and bulky for long-haul air travel. Therefore, the aviation industry is looking to renewable synthetic fuels, which it calls Sustainable Aviation Fuels (SAF), to achieve net zero in the future.
What are the advantages and disadvantages?
The study “E-Fuels – The potential of electricity-based fuels for low emission transport in the EU” analyzes the future energy demand of the European transport market as well as the necessary development of renewable energy capacities and the related investments required to achieve an 80-95% reduction of greenhouse gases. The following advantages and disadvantages could be identified:
- E-fuels have a high energy density and can therefore be conveniently transported over long distances and stored in a stationary manner for long periods of time, so that they can also compensate for seasonal supply fluctuations and thus help to stabilize the energy supply.
- The entire gasoline/diesel/kerosene/gas infrastructure (pipelines, filling stations) can continue to be used.
- E-fuels can be used by the existing fleet of passenger and commercial vehicles (legacy) and hard-to-electrify modes (aviation).
- Overall energy efficiency of electricity use in battery electric vehicles is 4-6 times higher, hydrogen in fuel cell vehicles about 2 times higher than e-fuels in internal combustion engines including grid integration.
What we need to do now
All means of transport should be electrified or partially electrified wherever environmentally and technically feasible. E-fuels will be crucial for transport applications for which electric powertrains are currently not readily available. That is why policymakers and industry must now create the framework conditions that make e-fuels economically attractive.
Policymakers and industry need to design a strategic agenda for technology research, market development and regulation of e-fuels. A cross-sector platform for e-fuels could initiate and coordinate this process in the near future.
E-fuels are currently in the demonstration and very early market penetration phase. An appropriate regulatory and economic framework is essential to guide more investment in fuel production efficiency and accelerate market penetration. From an economic perspective, the transport sector could play the key role as it does not directly face the problem of carbon leakage and customers are more inclined towards environmental sustainability.
We at magility will continue to monitor the development of synthetic fuels. We will be happy to keep you up to date on this.
Do you have any questions? Then please contact us at any time. Also feel free to follow us on LinkedIn to never miss any news.
