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TIR-CG_Luxembourg-Final-Report_Long-Version TIR-CG_Luxembourg-Final-Report_Long-Version

14.11.2016 Views

Third Industrial Revolution Consulting Group Financing Develop alternatives to FiTs for accelerating investments in DER. This will include public support for scaling the concept of energy cooperatives, crowdfunding platforms, and other sharing models. Innovations in performance contracting and third-party financing models should also be supported through public funding initiatives (i.e., incentives). New financing models should also be supported through public/private partnership, such as those that enable the development and integration of DER (e.g., distributed energy storage, microgrids). Develop and implement an action plan for financing Luxembourg’s SusTech sector. Analogous to Luxembourg’s FinTech sector, fostering Luxembourg leadership in in SusTech would aid in the transition from the current fossil-fuel based economy to an economy powered by sustainable energy. It would also result in job growth for both vocational and knowledge workers. Attaining leadership in this area will require increased R&D expenditures in the public and private sectors, as well as the creation of a more favorable environment for entrepreneurship. The action plan should include a charter for establishing a public/private partnership to ensure adequate funding is made available and secured over time. Innovation Proposals Technical Develop the energy superhighway. The energy superhighway is a crucial element of the larger Energy Internet. The importance of interoperability and coordination with entities and infrastructure, such as smart cities, smart buildings, DER, and electric transportation, cannot be understated. This proposal seeks to increase transactional linkages among transmission operators, distribution operators, energy suppliers, third parties, and all of their associated systems. Additional elements of this proposal include: o Develop a scalable network of DER technologies that can be monitored, controlled, and dispatched as a virtual power plant. Software control development is greatly needed to support this integration and dynamic interplay between DER technologies. Current examples can be found in California, where distributed energy storage technologies are being aggregated and deployed in an interconnected fashion, enabling the reduction of peak power demand on the 58

Third Industrial Revolution Consulting Group regional power grid, thus avoiding the use of fossil-fueled power generation during extreme temperatures. o Accelerate smart meter-enabled, network applications beyond business as usual. As Luxembourg advances its plan to roll out smart meters in 2016, consideration should be given to the emerging next-generation advancements in network applications that will be facilitated by the installation of smart meter technologies at scale. These advancements could accelerate more common applications, such as conservation voltage reduction, load balancing, outage management, transformer overload detection, high impedance fault detection, and other applications. o Develop a national testing laboratory for cyber security validation of hardware/software systems and controls equipment. The idea is to identify and alleviate potential risks and concerns with distributed intelligence in building systems, energy systems, and mobility systems. This concept further leverages the recent Network and Information Security (NIS) Directive in Luxembourg, which has established security and notification requirements for Operators of Essential Services (OoES)—such as banking, energy, transport, financial market infrastructure, health, drinking water, digital infrastructure—and Digital Service Providers (DSPs), including online marketplaces, online search engines, and cloud services.This national lab could build on the competence center for (smart) metering already built up by Creos in Contern as well as institutionalize the ongoing collaboration between Creos’ National Grid Control Center and the SNT department of the University of Luxembourg. o Create an R&D test bed for advanced power generation and energy storage options. This could include new battery chemistries for energy storage, advanced power inverters for renewable energy, and hybrid systems to integrate multiple energy technologies, such as energy storage with renewables. o Creation of smart meter data repositories to facilitate innovation in energy pricing and service offerings. Smart meter data exchange platforms can facilitate the development of innovative rate designs and related service offerings. Data privacy considerations will need to be addressed as different levels of access to these platforms is granted to new market entrants, and to other stakeholders over time. Support two-way charging infrastructure for electric vehicles and monitor developments of hydrogen-based mobility. Given the current and projected maturity, 59

Third Industrial Revolution Consulting Group<br />

Financing<br />

<br />

<br />

Develop alternatives to FiTs for accelerating investments in DER. This will include<br />

public support for scaling the concept of energy cooperatives, crowdfunding platforms,<br />

and other sharing models. Innovations in performance contracting and third-party<br />

financing models should also be supported through public funding initiatives (i.e.,<br />

incentives). New financing models should also be supported through public/private<br />

partnership, such as those that enable the development and integration of DER (e.g.,<br />

distributed energy storage, microgrids).<br />

Develop and implement an action plan for financing Luxembourg’s SusTech sector.<br />

Analogous to Luxembourg’s FinTech sector, fostering Luxembourg leadership in in<br />

SusTech would aid in the transition from the current fossil-fuel based economy to an<br />

economy powered by sustainable energy. It would also result in job growth for both<br />

vocational and knowledge workers. Attaining leadership in this area will require<br />

increased R&D expenditures in the public and private sectors, as well as the creation of<br />

a more favorable environment for entrepreneurship. The action plan should include a<br />

charter for establishing a public/private partnership to ensure adequate funding is made<br />

available and secured over time.<br />

Innovation Proposals<br />

Technical<br />

<br />

Develop the energy superhighway. The energy superhighway is a crucial element of the<br />

larger Energy Internet. The importance of interoperability and coordination with entities<br />

and infrastructure, such as smart cities, smart buildings, DER, and electric<br />

transportation, cannot be understated. This proposal seeks to increase transactional<br />

linkages among transmission operators, distribution operators, energy suppliers, third<br />

parties, and all of their associated systems. Additional elements of this proposal include:<br />

o Develop a scalable network of DER technologies that can be monitored,<br />

controlled, and dispatched as a virtual power plant. Software control<br />

development is greatly needed to support this integration and dynamic interplay<br />

between DER technologies. Current examples can be found in California, where<br />

distributed energy storage technologies are being aggregated and deployed in an<br />

interconnected fashion, enabling the reduction of peak power demand on the<br />

58

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