IEEE panel on “Opportunities to enhance power system

efficiency in the delivery of electricity to reduce

environmental impact”
2012 IEEE-PES Conference, Orlando (FL), May 7-10, 2012

“Power System Energy Efficiency:

a CIGRE Technical Committee Project”
Phil Southwell, Chair CIGRE Study Committee C1 and
Antonio Negri, Chair CIGRE Study Committee C3

Abstract

Energy efficiency is considered to be a very effective area to deliver an immediate impact on

greenhouse gas reduction and help defer expensive upgrades and expansions to the electrical
power system. Early in 2011, the CIGRE Technical Committee decided to increase the focus
and coordination of its work in relation to energy efficiency, in recognition of the importance of
this issue. Within a global context, this paper will summarise the framework that is being used
to guide the CIGRE work and describe current findings and future opportunities to address the
high priority areas.

Drawing on the work of the sixteen Study Committees of CIGRE that cover aspects ranging
from plant and equipment through to overall system planning and operation, the paper will
describe the strategic approach that is being used to connect the various aspects of the work. A
particular focus will entail analyses and commentary on four technical areas in which CIGRE is
positioned to provide expert advice on international and national approaches towards energy
efficiency. These are: high efficiency equipment (including the contribution offered by
standardization), emerging technological options, new network topologies (in a integrated
frame, to improve the overall system performance and efficiency), and energy storage. How
these tools can be practically deployed to the power system will then be examined with regards
to incorporating sustainability concerns into long-term decision making. Also the need of
rigorous and carefully applied metrics, to evaluate the costs and benefits of efficiency
improvement, will be addressed.
The paper proposes that raising awareness of potential directions and their associated benefits
from an impartial information source such as CIGRE will enhance national and international
approaches towards energy efficiency.

Phil.Southwell@westernpower.com.au; Antonio.Negri@rse-web.it

- 1-
978-1-4673-1935-5/12/$31.00 ©2012 IEEE
1 ENERGY EFFICIENCY: A CONCEPTUAL FRAMEWORK
At a basic level, efficiency can be described in the common phrase: “doing more with less”.
Popular understanding of energy efficiency primarily relates to the end use or final point of
consumption of energy by household and industry equipment.i
Using a broader frame, the World Energy Council opts for the following definition: “Energy
efficiency improvements refer to a reduction in the energy used for a given service (heating,
lighting, etc.) or level of activity.”ii
Energy efficiency is considered to be a very effective area to deliver an immediate impact on
greenhouse gas reduction and help defer expensive upgrades and expansions to the electrical
power system. Increasingly, including in studies by the International Energy Agency, there is a
realisation that energy efficiency options are the cheapest approach to reduce greenhouse
gases.iii

One of the key themes of all energy efficiency activities is how we move beyond a purely
economic outcome to better incorporate the environment and sustainability, as social and
environmental considerations drive better overall outcomes through standardisation, regulation
and carbon pricing. Sustainability frameworks and measures have been largely understood as a
“bolt-on” to financial statements or management reporting. This will need to change so that
decision makers can place sustainability front and centre, allowing the narrower approaches of
short-term economic pay off to give way to long-term integrated decision making. What is
needed at this stage is to find ways of quantifying the benefits of integrated decision making,
which often has a lower life-cycle cost than narrowly based, short-term decisions.
The pyramid below proposes a hierarchy to recognises that each level supports the direction set
by the level above. As the environmental impact is better understood and more appropriately
priced, the signals will be able to be more accurately incorporated in decisions made in the
lower levels.

Fig 1: Hierarchical levels of energy efficiency activities to reduce the environmental footprint
of electric

Phil.Southwell@westernpower.com.au; Antonio.Negri@rse-web.it

- 2-
Without clear linkages within and between the levels, it is not possible to ensure that scarce
resources are allocated to the area that will achieve the greatest improvement at the lowest cost.
In some cases energy efficiency improvements will be made at a particular level because they
are individually justified. The model allows for these improvements to be factored into the
overall view of where future effort should be focussed.

Assigning environmental costs (such as external costs – or “environmental externalities” iv and

carbon prices) provides the ability to undertake cost-benefit analysis as to the best options for
improving overall energy efficiency. As a result, this paper will use an adapted World Energy
Council definition where energy efficiency improvements refer to: “a reduction in the energy
used for a given unit of service — within the electrical power system, which facilitates the
provision of the service — while also factoring in quantified environmental costs.”

2 CIGRE ROLE
The energy supply chain is a large process and we need to be clear about the parameters of our
discussion. From a system perspective, greater energy efficiency equates to three fundamental
points: reducing losses, more output for a set input and assigning a value to energy.
While this relates to a system perspective, it is important to note that CIGRE does not
traditionally look at fuel efficiencies or energy conversion. We will begin our analysis at the
point of generation where the unit of measure is electrons. For the same reason, we will not look
at the conversion of electricity which is usually near the point of consumption.
Despite the line being drawn around the electrical components of the system, through smart
grids and intelligent devices, there is now the ability to control and influence consumption rates
and timings; both important for efficiency of the system.
A balanced approach to the overall efficiency of the power system is a necessary starting point
and needs to take into account:
• System component efficiency including energy efficient devices, system utilisation and the
optimum facilitation of generation, with particular emphasis on Renewables.
• Network loss reduction considered in conjunction with other factors to avoid suboptimal
dispatch of generation which ensures that these reductions are due to system improvements.
• Use of storage to support intermittent generation even if it is a long way from the generation
source as this may still result in the most efficient overall solution.
It is the mix of these factors which determines the ultimate system efficiency.
Early in 2011, the CIGRE Technical Committee decided to increase the focus and coordination
of its work in relation to energy efficiency, in recognition of the importance of this issue.

Part of the general focus of CIGRE work in energy efficiency relates to a greater sharing of
efficiency work between its individual Study Committees. This is a key aim of the overarching
decision making entity within CIGRE, the Technical Committee. CIGRE Study Committees are
divided into either A/B/C or D groupings. Within each of these groupings, individual Study
Committees are numbered. As of 2011, the 16 CIGRE Study Committees are:

A1 Rotating Electrical Machines C1 System Development and Economics

A2 Transformers C2 System Operation and Control
A3 High Voltage Equipment C3 System Environmental Performance

Phil.Southwell@westernpower.com.au; Antonio.Negri@rse-web.it

- 3-
B1 Insulated Cables C4 System Technical Performance
B2 Overhead Lines C5 Electricity Markets and Regulation
B3 Substations C6 Distribution Systems and Dispersed
Generation
B4 HVDC and Power Electronics D1 Materials and Emerging Test Techniques

B5 Protection and Automation D2 Information Systems and Telecommunication

3 THE WORK INSIDE CIGRE

CIGRE’s review of energy efficiency has so far been based on the following four priority
technical areas:
¾ high efficiency equipment;
¾ emerging technological options;
¾ new network topologies; and
¾ energy storage.
Descriptions of the current work in these areas are attached as Appendix 1 and have been
described in a previous paperv. This work covers most of the areas of the pyramid except for the
end user options in relation to contract choices, education and public information. A critical
aspect of improving energy efficiency relates to engagement with customers and stakeholders to
influence behaviour and gain support for new solutions. This has been recognised by Cigre for
some time and steps are being taken to improve communication, particularly to a non technical
audience. There is also a need to analyse the relative economic costs and benefits of solutions
in each of the areas to help identify where future efforts should be focussed. While this is
available for some aspects, considerably more work is needed to assess the relative costs and
benefits. This will take the form of rigorous and carefully applied metrics that can relate to the
overarching environmental footprint measure at the peak of the pyramid. Ways of quantifying
the benefits of integrated decision making are required. This form often has a lower life-cycle
cost than narrowly based, short-term decisions.
At a broader level, the C committees are considering system architecture aspects of the whole
power system, including opportunities for indirect influence on generation and consumption.
It is clear that direct efficiency gains can be obtained by improving the performance of
individual components of the power system chain. Indirect efficiency gains are more difficult to
realise as they involve abstraction and less clear boundaries, as well as winners and losers at a
component level. Yet, by considering power delivery, we can review opportunities to deliver
indirect efficiencies through technologies which better manage the end-use of the energy.
Internationally we see three general approaches which should deliver improvements to energy
efficiency.

Phil.Southwell@westernpower.com.au; Antonio.Negri@rse-web.it

- 4-
Area Advantages Disadvantages
Market Market sends signals and rewards efficient Unless there is an ability to rapidly respond efficiency
Mechanisms operators encouraging, overall, more efficient is diluted. Without storage, DSM or other options
and Pricing players there are limited options to “bank” efficiency gains
Regulatory Provides a central mechanism to allocate to the This approach can lead to governments picking
Targets least cost option winners and backing politically attractive or populist
technologies
Can be quick and effective if regulators and their
frameworks are correct The application of the net benefit test is not yet large
scale or successful
International Increases interoperability Can lead to a unsuitable technology being adopted if it
Standards is pushed by a single manufacturers interests

4 Conclusions
Energy efficiency gains will be determined by practical action and new infrastructure at a local
level. If fast growing countries do not have suitable energy efficiency tools, we will be locking
in inefficient capital investments which will not be replaced until the 2040s and beyond. If we
cannot alter how capital decisions are made or how markets are structured, change will be
glacial. This stems from the realisation that investment decisions and operational expense
allocation must favour energy efficiency options which make financial sense for the investor. A
desirable outcome would be price signals and profit incentives. However, we now rarely have
integrated utilities or existing ownership structures where this is the case.
The challenge for the industry is to provide energy efficiency options to engineers and managers
within the industry as well as to policy makers which can be implemented across the world.
These need to be economically justified and clearly communicated so that the benefits can be
clearly understood an the proposals supported by key stakeholders.

Phil.Southwell@westernpower.com.au; Antonio.Negri@rse-web.it

- 5-
 Appendix 1
The following four sections capture the work being done by CIGRE Study Committees. In each
of these four priority areas there are concluding observations which point to future areas of
work, research and suggest potential collaborations, as well as some of the tradeoffs which
result from improved overall efficiencies.

1 High efficiency equipment

High efficiency equipment is still an important contributor to overall system efficiency. As the
electrical power system is essentially a number of interconnected pieces of equipment, shifting
to high-efficiency equipment, or components, has a number of benefits. In a narrow sense, this
relates to incremental improvements based on refinement and continual adaption. However, for
nano-composites and other disruptive technologies, it is possible for improvements to accelerate
in leaps and bounds.

Generators: The improvement in efficiency of electrical machines can substantially contribute

to the reduction of losses in the performance of power systems through energy savings and
optimising the overall system performance. With the development of new materials together
with improving cooling and insulation in generators and motors, a better efficiency can be
reached. This is particularly important in the case of renewable generators and electric motors.
Considerations about the efficiency of electrical machines are presented as follows: efficiency
of hydrogenerators; efficiency of turbogenerators; efficiency of motors; and efficiency and
capacity of wind generators.
Transformers: The directions to improve transformer efficiency include: power transformer
replacement strategy for utilities; new standards to define transformer efficiency classes;
improvement to amorphous steel for utilisation in power transformers; high temperature super-
conductor transformers; and better transformer utilisation by the use of smart-grid technologies.
High Voltage Equipment: The direct efficiency of HV equipment relates to ohmic losses.
Making improvements in this area is a material issue (type & amount) and is relatively minor.
Regarding the wider issue of power system efficiency, aspects such as optimised maintenance
regimes for equipment (driven by smart condition monitoring systems) and flexibility of use are
areas of further work which will be guided by the designs of future power systems.
Cables: Improvements in underground and submarine lines efficiency include: reduction of AC
resistance of cable conductors by optimising the conductor design and use of insulated wires;
management of bottlenecks in cities by use of High Temperature Superconducting Cables;
increasing capacity of HVAC and HVDC cable systems for better use of ROW (increasing
ampacity by use of bigger cross-section conductors and increasing voltage by better use of
insulating materials); dynamic and enhanced cable on line rating systems for better use of the
installed systems; utilisation and coexistence with other utilities in shared systems; replacement
or upgrading strategies for utilities; on line monitoring of Underground lines by use of Partial
Discharge detection; and better protection of equipment to prevent third-party damage.
Lines: Energy efficiency of an overhead transmission line is considered at two different levels:
linevi component and line systemvii level. This two level approach mirrors the underlying theme
of this energy efficiency project. In looking at lines as part of a system, options in regards to
upgrading, up rating and conversion become considered in a broader context than simple
component and material considerations. In addition the relative efficiencies of overhead and
underground need to be considered as to the optimal solutions, especially in green-field versus
brown-field sites.
Substations: within the CIGRE structure, it has been noted that energy efficiency impacts or
benefits for substations are limited. More compact substations will result in lower losses and
new control as well as new control and protection systems will need less power. In addition

Phil.Southwell@westernpower.com.au; Antonio.Negri@rse-web.it

- 6-
condition based monitoring systems will increase the availability and therefore the efficiency of
substations too.

HVDC and Power Electronics: HVDC schemes can be used to connect asynchronous ac
networks and/or to transport electrical power over a long distance. Connection of asynchronous
networks enables sharing of spinning resources and an exchange of energy, for example, taking
advantage of different timings of peak demands can increase the utilisation and efficient
operation of the existing resources. Long distance HVDC transmission enables efficient
delivery of energy from remote hydro, wind and other renewable resources to load centres, as
HVDC transmission lines (cables or overhead lines) typically have lower power loss than the
equivalent ac transmission lines. This offsets the power loss in the converter stations at each
end. The power loss in a converter station depends on the technology, with the Line
Commutated Converter (LCC) technology and the modern Voltage Sourced Converter (VSC)
multi-level technology typically having a power loss of about 0.8 percent and 1.1 percent
respectively per converter station at full load. Efforts are underway to facilitate the development
of HVDC as a reliable technology, for voltages up to ±800kVdc (LCC), and testing and other
standard work on future HVDC Grids. Another important area of work relates to Flexible AC
Transmission Systems, which includes shunt connected, series connected and combined devices
that can be used to provide AC voltage and power control within AC transmission and
distribution networks.
As pointed out in a recent workshopviii, Standardization could play a fundamental role in: (a)
giving recognized definition of performances, (b) establishing the relevant measurement
methods, (c) coding the technological “best practices”, (d) making effective the improved
technologies for monitoring, control and automation, (e) defining guidelines and check-lists,
therefore increasing the infrastructure access and the interoperability of the systems. Cigre’s
role in this area is to produce technical brochures which are a major contributor to IEC
standards.

2 Emerging technological options

New technologies provide more and more options for providing energy services. As we move
towards greater adoption of micro- and super-grids, our assumptions, planning approach and
overall thinking may need to change to ensure system-wide efficiency improvements.
In the area of Real time plant monitoring, the process is one of continuous evolution and
development. The main goal is the most effective operation of machines to optimise
performance, reliability and efficiency and to take maintenance decisions through understanding
behaviour and signs of deterioration (the so-called Condition Based Maintenance).
The utilisation of Polymer nano-composites is promising as near-future HV electrical
insulation in rotating machines, resulting in a better performance and efficiency. However,
nano-composites are still in their premature stage and various kinds of polymer nano-
composites are under development for electrical apparatus and electronic devices.

The introduction of superconducting apparatus has become attractive from the point of view
of being more efficient, pollution free and the enabler of compact devices. SCG will be the
promising alternative for increasing generation efficiency, reducing size, weight and improving
power system stability in comparison with conventional generators. A SCG will have about 1/3
of the overall volume of an equivalent conventional generator and may be used in existent or
new power plants where expansion and space are a problem. In a SCG the field winding is made
by High Temperature Superconductor (HTS).

Micro load control and automation: Traditionally, the electric power industry has been
focused on the supply side, ensuring that there is both sufficient generation and network

Phil.Southwell@westernpower.com.au; Antonio.Negri@rse-web.it

- 7-
capacity to serve an inflexible load. Consequently, the relationship between end-use customer
flexibility to alternative service options and the relevance of enabling technology is not well
understood. Furthermore, the capability of Information and Communication Technologies (ICT)
has advanced rapidly with respect to data processing, high speed data communications, and
embedding intelligence inside devices within what previously have been largely non-intelligent
power system equipment. This advancement coincides with heightened interest in the
application of ICT in the electric power industry.

Demand Side Integration: DSI is the overall technical area focused on advancing the efficient
and effective use of electricity in support of power systems and customer needs. That is, DSI
covers all activities focused on advancing end-use efficiency and effective electricity utilisation,
including demand response and energy efficiency. The purpose of DSI programs is to modify
the behaviour of electrical loads of different customer types (e.g. end-uses at
domestic/residential, commercial, or industrial facilities) in order to optimise energy production
costs, enhance energy utilisation or system reliability, or to match utilisation to environmental
factors. When planned accordingly, they can also contribute to defer investment in new
infrastructure by diminishing the peak capacity requirements of the system.

3 New network topologies

A significant amount of time within the transmission and distribution entities is focused on
planning, financing and building the optimal electricity network. Network topologies are
optimised to improve overall system efficiency and performance. As new technologies emerge,
there is a need to revisit the network topologies which can facilitate greater change and progress
within the physical grid.
Coordinated planning: The ideal power system architecture design would optimally suit the
challenges facing current power system planners without incorporating the historical limitations
of existing power systems and allow for major transmission interconnections between regions
and countries. This may include the construction of an overlay on the existing transmission
network, using UHVAC or HVDC. Providing interconnections between adjacent networks or
electrical islands facilitates the exchange of renewable energy and lessens the intermittency
experienced with many of these energy sources. Enabling the transport of large scale electrical
energy over long distances may also give a number of efficiencies in operation of the overall
network(s). To enhance the overall operation it is very beneficial to include controllable
devices, such as FACTS devices within the overlay, or to connect the overlay to the underlying
ac transmission network though AC/DC/AC converters.
Consideration is being given to the development of HVDC Grids as an overlay. This would be a
major change from the existing point to point HVDC schemes, which have been applied
successfully in most parts of the world ix.
System optimisation: Issues such as the changing shape of system losses will be a key
influence on the overall efficiency of the system. During the past couple of years, the
complexity of transmission system operation has increased significantly. The substantial growth
of volatile wind energy sources and large-scale energy trades across wide areas has led to huge
load flow shifts. As a consequence of these huge load flows, grid losses are increasing and
smarter operational management systems are needed. With these extremely large power
transfers, the power system is operated ever closer to its security limits. Effective congestion
management by coordinated remedial actions and coordinated Phase Angle Regulator (PAR)
settings play an important role to ensure system security.
Micro-grid Technologies: Management of loads and distributed generation to optimise power
flows, such as that facilitated by micro-grid technologies are needed.x A micro-grid is
essentially an aggregation concept with participation of both supply- and demand-side resources
in low-voltage (LV) and medium-voltage (MV) distribution grids. Based on the synergy of local
Phil.Southwell@westernpower.com.au; Antonio.Negri@rse-web.it

- 8-
load and local Micro Source (MS) generation, a micro-grid can provide a large variety of
economic, technical, environmental, and social benefits to both internal and external
stakeholders. A micro-grid offers flexibility in terms of ownership constitution, and allows for
global optimisation of power system efficiency.

4 Energy Storage
The commercial availability of deployable storage options could solve many of the issues which
limit the efficiency of energy solutions. Storage offers a range of benefits at different parts of
the power systemxi which are well documented and generally understood. What is more
challenging, and relevant to CIGRE, relates to what this will mean in practice and where change
will be first implemented.
Generation: Energy storage improves the value and efficiency of generation and transmission
assets. During periods of low demand many generators are forced to reduce the output in order
to stay on line, resulting in higher operation and maintenance costs, lower efficiency (heat
rates), and in some cases longer periods of start/stop operation. Through a price arbitrage
mechanism, energy storage can help existing assets to increase their capacity factor and
efficiency. Energy storage can improve the efficiency of generators during peak period by
absorbing variations in the system demand that would otherwise force operation of assets
outside their optimal performance range. In case of an operational constraint forcing
commitment of an additional generator at a low output, energy storage can be discharged until
demand increases enough for the additional generator to operate at efficient outputs.
Transmission and distribution: The energy storage enables additional power to flow without
requiring costly and time-consuming system upgrades. By shifting power flow from the high
demand to the low demand period, it reduces existing transmission constraints. This could allow
the delay of transmission/distribution development for some time and thus free up investment
capital for other urgent projects. As a by-product of storage installation, transmission losses
might be lowered and plant utilisation increased. In some cases energy storage can make it
possible to gain time required for environmental approval for a new line.
While still in their infancy, any developments in this area would have a multiplier effect.
Existing work inside CIGRE includes:
Pumped Storage Plants: Pumped storage power plants are a type of hydroelectric power
generation used for load balancing. Their turbines can operate as both turbine-generators and in
reverse as electric motor driven pumps. Low-cost off-peak electric power is used to run the
pumps. During periods of high electrical demand, the stored water is released through turbines.
Superconducting Magnetic Energy Storage: Advanced types of energy storage, like
Superconducting Magnetic Energy Storage (SMES), will be necessary to form the optimum
power source composition in the future. The transmission capacity of some utility grids is
limited not by steady state operation in normal and emergency conditions, but rather by their
ability to handle transient conditions. Sudden changes in flow patterns can pose the risk of
voltage instability, causing component failures and the threat of cascading outages. To avoid
this risk the utilities have to make new investments in transmission facilities. New technologies,
like SMES, are able to relieve these voltage stability limitations, by injecting large amounts of
real and reactive power instantaneously, at its particular location, resulting in a quicker voltage
recovery than a similar sized Static Var Compensator (SVC) and increasing the available
transfer capability on a given system. Small signal stability improvements, increasing transfer
power capability and mitigation of the effects of large capacitor bank switching, are other
applications for SMES that are currently being investigated.
Power electronic interfaces: Consideration has been given to increasing the energy storage
within a VSC HVDC scheme or with a STATCOM, such that energy injection to the AC
network can be extended beyond a few cycles. The power electronics in such systems would be
able to handle this additional requirement, over and above the reactive power control, relatively
Phil.Southwell@westernpower.com.au; Antonio.Negri@rse-web.it

- 9-
easily, being limited only by the rating of the semi-conductor switches and other hardware
(transformers etc.) depending on the time scale. Typically, the power semi-conductors have
limited over-load capacity compared with their rating, eg. 10 percent or less, but the overload
capacity can of course be increased by increasing the rating of these devices. Flow batteries may
offer the best prospect for medium duration storage, but large scale commercial applications
have not yet started.

i
For example, the US Energy Star program which positively rates appliances that use less energy than comparable
models.
ii
World Energy Council:
http://www.worldenergy.org/publications/energy_efficiency_policies_around_the_world_review_and_evaluation/1_i
ntroduction/1175.asp
iii
International Energy Agency, Energy Efficiency Policy Analysis at the IEA 2008.
iv
Within CIGRE, the WG C3.08 is currently dedicated to the topic of “Environmental external costs”.
v
Power System Component Efficiency and Energy Delivery Effectiveness Designed for Minimal
Environmental Impact, P Southwell, Chair SC C1, A. Negri, Chair SC C3, CIGRE Symposium, Bologna,
2011.
vi
Line component level: New conductor materials and new conductor designs in order to reduce their I²R losses;
bolted clamps and connectors (suspension, dampers, spacer dampers, etc.) to be optimised or redesigned regarding
their I²R losses; I²R losses to be considered when evaluating usage of so-called HTC (High temperature conductors)
in continuous operation, i.e. not only in emergency (n-1) situations and increase of number of sub-conductors mainly
at UHV in order to reduce corona losses.
vii
Line system level: Better usage of existing ROW corridors by upgrading conversion to DC; increase the SIL
(Surge Impedance Loading) of a line by line compaction and/or bundle expansion; condition monitoring to assess and
control deterioration/aging of line components; and advanced maintenance techniques (live line, robotics) to extend
life time of a line.
viii
“International Standards to >Promote Energy Efficiency and Reduce Carbon Emissions”, Joit Workshop IEA,
ISO, IEC, Paris 16-17 March 2009
ix
See for further details the paper by T.K. Vrana and O.B. Fosso (Chairman of SC C5 of CIGRE)
“Technical aspects of the North Sea Super Grid”, Electra N.258, October 2011
x
EU project “More Microgrids”, final report, Dec. 2010 and WG C6, 22, “Microgrids Evolution Roadmap” in
progress.
xi
Electric Energy Storage Systems”, WG C6.15, Final Report, April 2011.

Phil.Southwell@westernpower.com.au; Antonio.Negri@rse-web.it

- 10-