Report: Top Management Forum with Focus on Smart Grids and Green Productivity, November 17-19, 2015, Korea

Group Photo of participants

Group Photo of participants

The forum aims to discuss the latest developments and trends in the use of smart grids for energy management, deliberate on technological challenges faced by APO members in maximizing the use of smart grids, and develop a set of measures to be taken by governments for the promotion of smart grids at macro and micro levels.

A smart grid is an electricity network that intelligently integrates the actions of generators, consumers, and those that do both to deliver sustainable, economical, secure electricity supplies. It is fundamentally different from current network operations. Smart grids support the widespread distribution of energy resources, facilitate the participation of customers, and support increased use of electric vehicles.

The APO has been actively organizing capacity-building projects on energy efficiency, energy management, renewable energy, and eco- and future cities. The forum held in Jeju shared the successful application of smart grids for sustainable energy management.

OBJECTIVES

It is noted that the series of smart grid technologies would actually cover the integration of generation, transmission, distribution, consumption, dispatching, and communication and information technology. Being in-charge of the group that prepares the Transmission Development Plan for the country, visits and exposure to areas that have actual applications of available smart grid technologies would provide ideas on the development of the possible smart grid road map for the Philippines as far as the transmission system is concerned.

In NGCP’s network expansion plans, designs for smart substations have been considered already but the program to already upgrade/rebuilt all the existing traditional substations to become smart substations is yet to be established. Being able to visit a Smart Grid Test-bed in Jeju Island that has successfully implemented such facilities would provide me better understanding and appreciation of the latest trends.

I also expect that the project would be able show actual applications of smart grid technologies in grid integration of renewable energy resources and possibly including the applications of energy storage systems for sustainable energy management. These would provide ideas in the grid integration studies being conducted by my department especially that the Philippines has an increasing capacity of wind and solar plant installations. I also expect to learn on the issues and challenges encountered when setting up a smart grid.

PARTICIPANTS

A total of 24 delegates from utility companies and from Ministry / Department of Energy of the APO member countries participated in the forum: Bangladesh (2), Cambodia (2), ROC-Taiwan (3), Fiji (1), India (1), Indonesia (1), Iran (1), Lao PDR (1), Malaysia (3), Mongolia (1), Nepal (2), Philippines (2), Sri Lanka (2), Thailand (1);

From Philippines, the other delegate is Ms. Julie-Anne C. Sernal – Senior Investment Specialist from the Department of Energy.

SCOPE, CONTENT, METHODOLOGY

Part 1 – Presentations/Discussions from the following resource speakers:

Mr. Leon R. Roose
Principal & Chief Technologist of GridSTART (Grid System Technologies Advanced Research Team)
University of Hawaii

Topics discussed:

(a) What is Smart Grid and why it is necessary?
(b) Smart-related Development in Hawaii and the Role of the Government

Mr. Kazuyuki Takada
Smart Community Department of NEDO (New Energy and Industrial Technology Development Organization)
Japan

Topics discussed:

(a) Renewables and Energy Efficiency in Japan?
(b) NEDO’s Smart Grid / Smart Community Activities in Japan

Mr. Jong Cheon Son
Korea Smart Grid Institute

Topics discussed:

(a) Smart Grid in the Korean Context?
(b) Jeju Smart Demonstration and other Projects

Part 2 – Site Visit to Jeju’s Smart Grid Information Center

There is no country paper required in the forum. In the last day of the activity, the participants were grouped into four (4) and were asked to discuss and present per group the learning points acquired from the forum.

OUTCOMES AND EVALUATION

The forum has provided participants an opportunity to exchange dialogue on the current trends, challenges, and technology in the field of smart grids which can help in the establishment or refinement of national implementation strategies for green energy innovation and recommend measures for expeditious introduction and promotion of smart grids.

The expectations were met and the three (3) resource speakers are very knowledgeable and have been effective in discussing their respective topics.

The visit to the Smart Grid Information Center also provided further knowledge on how the smart grid pilot project in Jeju Island has been implemented.

Redi Remoroza receives APO Certificate of Attendance

Redi Remoroza receives APO Certificate of Attendance

RECOMMENDATIONS AND ACTION STEPS

Based on the learning points in the forum and the experiences of other countries in smart grid implementations, the recommendations are as follows:

A. In 2013, the Department of Energy (DOE) has issued Department Circular No. 2013-03-0003 entitled “Creating an Inter-Agency Steering Committee for the Development and Formulation of a Comprehensive and Holistic Smart Grid Policy Framework and Roadmap for the Philippine Electric Power Industry”. The Circular has a provision for the creation of a steering committee which will be composed of the following agencies:

a. Department of Energy (DOE)
b. National Power Corporation (NPC)
c. National Transmission Corporation (TransCo)
d. National Electrification Administration (NEA)
e. National Grid Corporation of the Philippines (NGCP)
f. Philippine Electricity Market Corporation (PEMC)

In addition, other concerned agencies would also be invited in the discussions which include:

a. Department of Trade and Industry (DTI)
b. Department of Science and Technology (DOST)
c. Energy Regulatory Commission (ERC)
d. Grid Management Committee (GMC)
e. Distribution Management Committee (DMC)
f. Institute of Integrated Electrical Engineers (IIEE)
g. Philippine Independent Power Producers Associations (PIPPA)
h. Philippine Electric Plant Owners Association (PEPOA)
i. Distribution Utilities
j. Academe
k. Customer Groups
l. Other groups as may be identified by DOE

The issuance of the said Circular shows that the DOE has already taken the first step in triggering the discussions in order to define the smart grid roadmap for the country. In this regard and with NGCP’s membership in the steering committee:

1. NGCP’s support and active participation is recommended;
2. Regular meeting schedule of the steering committee, as also defined in the DOE Circular, should materialize; and
3. NGCP to share in the discussions the learning points acquired from the forum attended in Jeju, Republic of Korea as follows:

• There is a need to know first the biggest issues/challenges/opportunities in the existing grid (generation, transmission, distribution, demand side). Each country is unique in these aspects, thus, the smart grid roadmap to be established should be based on local situation.

• The issues and challenges, which are opportunities for smart grid technology applications, should be ranked or prioritized.

• Smart grid, which could still be costly, has become a hype to some extent and its application should not only for the sake of having a smart grid but also for purposes of maximizing the benefits. Thus, cost-benefit analysis should also become part of the planning exercise for smart grid. Also, the application of smart grid technologies may have to be gradual.

• There are many smart grid application opportunities in the Philippines including the isolated or remote areas or island where a smart micro-grid can be developed. For the pilot project, a special financing arrangement or a grant would be necessary as local communities may not be able to afford.

• As distribution utilities have different situations, 1 pilot project can be considered for an electric cooperative, 1 pilot project for a private distribution utilities and 1 pilot project for an island or off-grid area. The criteria for the selection of the location and utilities for the pilot project should also be established.

• A lead group/agency must be established in the future similar to Korea Smart Grid Institute in Korea and New Energy and Industrial Technology Development Organization in Japan. This could facilitate the implementation of the smart grid roadmap and integrate the efforts of the different utilities.

• The government should initiate or strongly support the smart grid activities as in the case in China, Japan and Korea. The enactment of the RE Law is already among the majors steps in the Philippines. Additional law or policy may be required for smart grid implementation. Among others, the smart grid policy needs to address regulatory and market barriers that may hinder regional smart grids’ demonstration and deployment as well as business model development.

B. In 2011, NGCP and SGCC (State Grid Corporation of China) have already signed a smart grid strategic cooperation memorandum. Continuing engagement and collaboration with SGCC is recommended to further address existing grid issues using smart grid technologies in the transmission side.

For the transmission side, the biggest issues and challenges include the increasing penetration of intermittent energy resources (wind and solar) and equipment failure. NGCP should continue further assessment of applicable smart grid technologies such as use of battery energy storage system (BESS) and use of equipment monitoring and diagnostic devices.

C. NGCP should continue its participation to international forums/study visit and other activities on smart grid in different countries in order to further expand NGCP’s in-house knowledge.

SUBMITTED BY

REDI ALLAN REMOROZA
Head, Transmission Planning Department
Natoinal Grid Corporation of the Philippines (NGCP)
Email: rbremoroza @ ngcp.ph

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