Concepts and Incentives for the Decentralization of Electrical Power Systems based on Building Energy Management Systems

Table of Contents

1 Introduction

1.1 Motivation and Context

1.2 Research Questions and Structure

2 Fundamentals and State of the Art

2.1 Challenges Arising from the Electrical Power System Change

2.1.1 Introduction to Electrical Grids

2.1.2 Supply follows Demand – Traditional Electrical Power Systems

2.1.3 Demand follows Supply – Future Electrical Power Systems

2.2 Classification of Micro Grids

2.2.1 Micro Grids in General

2.2.2 Different Types of Micro Grids

2.3 Overview of Building Energy Management Systems (BEMSs)

2.3.1 Definition

2.3.2 Components, Functions and Capabilities

2.3.3 Targets, Key Success Factors and Benefits

2.4 Demand Side Management (DSM) and Demand Response (DR)

2.4.1 Definition

2.4.2 Operational Drivers and Functions

2.4.3 Benefits

2.5 Performing Demand Side Management with BEMS in Micro Grids

2.5.1 Overall Approach

2.5.2 Interoperability within the Grid Hierarchy to Conduct DSM

2.5.3 Demonstration Sample

3 Energy-oriented Characterization of Building Types

3.1 Significance of the Buildings Sector for Energy Consumption

3.1.1 Impact and projected Growth of the Building Sector

3.1.2 Energy Efficiency, Energy Sufficiency and Distributed Generation by Buildings

3.2 Industrial Buildings

3.2.1 Definition and Examples

3.2.2 Impact and Future Development of Delivered Energy Consumption

3.2.3 Structure of Delivered Energy Consumption

3.2.4 Consumption Patterns and Behavior

3.3 Commercial and Public Buildings

3.3.1 Definition and Examples

3.3.2 Impact and Future Development of Delivered Energy Consumption

3.3.3 Structure of Delivered Energy Consumption

3.3.4 Consumption Patterns and Behavior

3.4 Residential Buildings

3.4.1 Definition and Examples

3.4.2 Impact and Future Development of Delivered Energy Consumption

3.4.3 Structure of Delivered Energy Consumption

3.4.4 Consumption Patterns and Behavior

3.5 Summary of Sector Impact and Devices

4 The Potential of Buildings to Offer Grid-Supporting Services

4.1 Target and Factors of Electric Power Grids and their Influences

4.1.1 Target and Factors

4.1.2 Influences

4.2 Building Potential for Grid-Supporting Services

4.2.1 Active Energy Balance

4.2.2 Reactive Energy Balance

4.2.3 Energy Storages

5 Incentives for BEMS Stakeholders to Form Micro Grids and Offer Grid-Supporting Services

5.1 Vision of a Decentralized Electrical Power System

5.2 Market Opportunities for Monetizing Flexibilities

5.2.1 Energy Markets Today

5.2.2 Future Development and Possible Solutions

5.3 Potential Stakeholder Interests

5.3.1 Transmission and Distribution System Operators

5.3.2 Utilities

5.3.3 Government

5.3.4 End-User Costs and Revenues

5.4 Industrial Application Scenario

5.4.1 Current Challenges

5.4.2 Potential Sector-Specific Interests

5.4.3 Incentives and Potential Approaches

5.5 Public/Commercial Application Scenario

5.5.1 Current Challenges

5.5.2 Potential Sector-Specific Interests

5.5.3 Incentives and Potential Approaches

5.6 Residential Application Scenario

5.6.1 Current Challenges

5.6.2 Potential Sector-Specific Interests

5.6.3 Incentives and Potential Approaches

5.7 Current Approaches to Address End-User Incentives

6 Conclusion

6.1 Summary of the Results

6.2 Outlook

Research Objectives and Core Themes

This thesis examines the paradigm shift in electrical power systems from a centralized, supply-side orientation to a decentralized, demand-side concentrated model. The research focuses on the integration of Building Energy Management Systems (BEMS) and Micro Grids to leverage building-level flexibility for supporting grid stability, reducing costs, and facilitating the transition to renewable energy sources.

• Examination of the technical and economic challenges resulting from decentralized renewable energy integration.
• Analysis of building-level energy consumption characteristics across industrial, commercial, and residential sectors.
• Evaluation of BEMS and Micro Grid technologies as enablers for Demand Side Management (DSM).
• Investigation of stakeholder motivations and market-based incentives for participating in decentralized energy networks.
• Development of strategies to improve grid-supporting services through energy storage and load management.

Excerpt from the Book

Chapter Summaries

1 Introduction: Provides the motivational background for the paradigm shift in energy systems and outlines the research objectives and structure.

2 Fundamentals and State of the Art: Discusses technical challenges of grid transition, classifies micro grids, and details the functionality of BEMS and Demand Side Management (DSM).

3 Energy-oriented Characterization of Building Types: Analyzes the energy consumption patterns and future development projections for industrial, commercial, and residential building sectors.

4 The Potential of Buildings to Offer Grid-Supporting Services: Explores how buildings can contribute to frequency and voltage stability through active energy balance, reactive energy management, and energy storage.

5 Incentives for BEMS Stakeholders to Form Micro Grids and Offer Grid-Supporting Services: Investigates the motivations for stakeholders, proposes sector-specific scenarios, and discusses market opportunities for monetizing flexibilities.

6 Conclusion: Summarizes the key insights related to the research questions and provides an outlook on future requirements for a successful energy transition.

Keywords

Building Energy Management Systems, BEMS, Micro Grids, Demand Side Management, DSM, Grid-supporting services, Renewable Energy Sources, RES, Energy consumption, Distributed Generation, Smart Grid, Energy efficiency, Prosumers, Stakeholder incentives, Energy storage

Frequently Asked Questions

What is the core subject of this thesis?

The work explores the transition of electrical power systems towards decentralization, focusing on how buildings can be transformed from passive energy consumers into active participants (prosumers) that support the stability of the electrical grid.

What are the central themes discussed?

The key themes include the shift from supply-following-demand to demand-following-supply, the role of ICT in energy systems, building-specific energy characterization, and the economic and technical incentives for forming decentralized micro grids.

What is the primary objective of the work?

The main goal is to identify and structure the technical and motivational frameworks that enable building owners to participate in decentralized energy markets while helping utility providers maintain grid stability.

Which research methods are employed?

The thesis relies on an extensive literature review and systematic analysis of energy sectors (industrial, commercial, residential), identifying current challenges and evaluating technological and economic approaches like BEMS and DSM for future grid integration.

What topics are covered in the main section?

The main part covers the fundamentals of grid operations, the classification of micro grids, an energy-based characterization of building types, and specific application scenarios for industrial, commercial, and residential environments regarding grid-support services.

Which keywords best characterize the research?

Important terms include Building Energy Management Systems (BEMS), Micro Grids, Demand Side Management (DSM), Distributed Generation (DG), Grid-supporting services, Renewable Energy Sources (RES), and Smart Grid infrastructure.

How does the industrial sector contribute to grid stability?

Industrial facilities, due to their scale, can act as significant nodes for demand response. By leveraging BEMS to manage industrial processes and on-site generation, these enterprises can mitigate peak loads and provide grid-supporting services like frequency control.

What role do end-user incentives play in the success of BEMS?

Monetary rewards, such as cost reduction through energy efficiency, revenue generation through ancillary services, and hedging against rising energy prices, are identified as critical extrinsic drivers for end-user engagement in BEMS implementation.