Focus on energy
Electricity is a vital element in our common efforts towards achieving energy and climate targets. If they are to be met, changes will be needed not only to the electrical energy systems as such, but also to how they are used. Full use will have to be made of the opportunities presented by the electricity
market, coupled with a readiness to review and, when necessary, to modify them. This will provide a good basis for the development of smart electricity systems by which, for example, the natural variations in wind power production can be accommodated by flexible use of electricity.
Elforsk 2011 in english (pdf)
Elforsk AB, which was established in 1993, is jointly owned by Swedenergy and Svenska Kraftnät (the Swedish national grid operator). Its overall aim is to rationalise sector wide research and development. Activities are divided into six programme areas: Hydro Power, Electricity and Heat Generation, Nuclear Power, Transmission and Distribution, End Use, and Strategies and Systems. Working areas that extend over several programme areas are mostly dealt with under Strategies and Systems.
ELFORSK – SHARED
FINANCING FOR JOINT R&D
Elforsk’s work is carried out in the form of coordinated framework programmes and as individual projects. Proposals for R&D come from the owner group companies, from Elforsk staff members, and from external parties with whom we work. Proposals are evaluated in various ways, such as with the support of our programme groups, and developed in conjunction with possible sources of funding and potential performers. The proposals are then submitted to the owner group companies and others who might be interested, with a clear description of the expected benefit. When project funding has been secured, Elforsk commissions execution of the work from companies in the owners group, from institutes of technology or from manufacturers or consultants, and quality manages the resulting projects. The final task for Elforsk is then to transfer the results of projects to the financing companies or organisations so that they can be applied in an effective manner. Only those projects that are guaranteed sufficient financing can be carried out. Elforsk has no underlying basic finance for its work, and nor for its personnel
costs, which is definitely an unusual situation for an R&D organisation. The overall purpose of this arrangement is clear: only work directly requested by customers will be carried out. Elforsk’s method of working attracts attention, and not just in Sweden. It is cited in various contexts as a possible model for other sectors, that do not have the same systems for how the various parties
from institutes of technology, public authorities and industry can work together towards common objectives. .
CLEAR BENEFITS THROUGH JOINT WORKING
The economic benefit of participating in Elforsk projects consists partly of direct application of the results, in the form of reduced costs and new business opportunities, and partly of reduced project costs resulting from shared financing. The establishment of a project is, in some cases, totally dependent on achieving a cost sharing relationship, not least with parties outside Elforsk’s owners group. It is therefore gratifying to be able to note that well over half of the total costs for the company’s project activities are covered by funding sources from outside the owners group. This shows that the economic benefit of working together through Elforsk, rather than in the form of company specific efforts, is clear. A few hundred representatives from the stakeholder parties around Elforsk are active members of programme advisory groups, management groups, reference groups and work groups. Networks – much appreciated by their members – form between companies, with the overall result of a clear boost to competences and knowledge through cooperation and the exchange of experience within the various groups.
THE JAPANESE DISASTER – DEMONSTRATION OF THEENVIRONMENTAL VULNERABILITY
OF THE ENERGY SYSTEM
For many countries, the events in Japan have illustrated the importance of electricity supply in society on the one hand, and the vulnerability of supply and potential harm to the environment on the other. The actual events in the nuclear power station cannot yet be seen or assessed in full. The situation is still not under control, with no clear picture of what actually happened, or of the health and environmental effects in the areas around the plant. It will probably be many years before the consequences are fully apparent. But the debate and speculations on the risks of accidents and the potential harm to the environment as a result of the energy system are already in full flow all over the world, Sweden included. The long-term strategic balances between secure supplies of energy and the necessity to protect the environment are again under the spotlight.
ELFORSK SUPPORTS ENERGY UTILITIES’ ENVIRONMENTAL EFFORTS
Energy is very much the centre of concern,
in several ways. After the global economic
recession, world energy demandsare increasing, while the targets for energy and the environment are challenging. Security of supply is important in this context, as is safety. Ever since it was founded, Elforsk has provided energy utilities with knowledge to enable them to reduce their environmental impacts: not only in respect of their climate effects, but also of the environment in a broader perspective. However, during the 2000s, the focus has been mainly on climate-related effects and greenhouse gas emissions. National and international targets for significant reductions in greenhouse gas emissions have been formulated, and there are visions of achieving ‘near-zero’ emissions within a foreseeable future. Various policy measures are now resulting in extensive changes to society’s energy supply, with powerful and often unilateral concentration on climate and sustainability in particular, with other environmental considerations having to take second place. One consequence of this is that we probably are looking at an enormous increase in the use of biofuels at national and international levels, probably with resulting associated extensive world trade in such materials. Elforsk has therefore for some years been initiating investigations of the climate effects of greater use of biofuels. It has also taken the initiative of the sector now looking proactively at other environmental aspects that otherwise have a tendency to be overlooked. In the “Future Environmental Aspects” project, for example, we have started from futures descriptions of energy supply “in 2050”, when greenhouse gas emissions are said to be under control, and ask “Which otherenvironmental problems have we missed in our eagerness to limit climate effects, and which new environmental problems have we created?”.
FUTURE ELECTRICITY SYSTEMS
Electricity has a given place in our future energy system. Improving the efficiency of electricity use is important. Using electricity as an energy carrier enables energy systems as a whole to become more efficient. A change from fossil fuels to electricity is a possibility in the transport sector: the Government has set a target date of 2030 for the country to be independent
of fossil fuels for its vehicles. The large vehicle manufacturers are now launching electric vehicles. Sweden is expanding its wind power production. One problem of wind power is its variability. Sweden is fortunate in that hydro power can be used to smooth out variations
in wind power production, but an even better way would be to ensure that electric vehicles can be recharged at times of high wind power production. “Smart grids” is a concept that has been widely mentioned over the last few years. Electricity grids are already largely smart, and continued development is delivering higher reliability and efficiency. An exciting application of the smart grids concept is the possibility of automatically charging electric vehicles when the availability of electricity is high. In the same way, washing machines could be started automatically when the price of electricity drops below some particular level. These are applications that require information technology. Sweden has world-class companies
and expertise, not only in electric power but also in information technology – areas in which we can further development through cooperation between these disciplines. The time for smart grids and smart homes is now, when a growing number of hardware items are connected to wireless networks. 1996 saw deregulation of the electricity market, with transmission and distribution being separated from the trading of electrical energy. Development is needed in order to create flexibility of demand: not only of the technology, but also of the services offered by the market and by the grid companies. Benefits need to be seen at all levels if development is to take off. This is an area of interesting challenges and opportunities.
HIGH AND CONSTANT TURNOVER
Elforsk’s economic results continue to develop satisfactorily. Invoicing has increased from somewhat over SEK 70 million in 1994 to SEK 150 million in 2010, with a substantial increase in the last few years. With concentration on the areas of relevance, and with soundly based projects and programmes, it can clearly be seen that cooperation has a valuable place, even in areas subject to competition.
SEK 270 MILLION OF R&D PROGRAMMES IN 2011
Shared financing of R&D projects makes it possible for the individual companies making up Elforsk’s ownership group to participate in extensive programmes with a substantial return on investment, i.e. the value of the output results in relation to the cost of participation. The diagram
above shows the proposed gross inputs (SEK million) per programme area for 2011. In total, the programme would involve contributions of over SEK 100 million from Elforsk’s owners. The diagram also shows the total costs for the projects in which Elforsk is involved, including financing from other companies, public R&D funding sources etc., amounting to about SEK 270 million: in other words, more than quadrupling the owner group companies’ inputs. It should be pointed out that the R&D projects that are actually run during the year will differ in some respects from the proposed gross programme due to changes in external circumstances, economic conditions, acceptance of tenders etc. The following pages describe current
and planned activities in Elforsk’s six programme areas. We hope that you find them interesting.
Magnus Olofsson, Managing Director