Schneider Electric and DONG Energy, one of the leading energy companies in Northern Europe, announced today an agreement to cooperate on a technological and commercial partnership.

The ambition is to enable electric network operators of remote or isolated island grids to increase the share of renewable used while maintaining grid stability and reliability for consumers.

In Europe alone, at least 286 remote islands[1] distanced from mainland grids exist. These isolated island grids are often heavily diesel-dependent, incurring high electricity costs and subject to fluctuating fuel prices. This is a barrier for local economic development, for improving living standards and for reducing carbon emissions.  Many island utility operators aim to replace diesel with renewable generation to reduce costs and reach renewable targets. The main challenge of integrating intermittent renewable energy is the ensuing complexity of balancing the grid and maintaining reliability and stability. In effect, this can cap the amount of renewable energy which can be efficiently integrated.

With Dong Energy’s virtual power plant technology and Schneider Electric’s market-leader distribution grid field devices and management systems, the partners will address these crucial environmental issues. The aim is to create a new platform offering real-time generation and demand forecasting, monitoring and control. 

“DONG Energy has developed a virtual power plant system called Power Hub, which aggregates loads and generation capacity for network flexibility through a software platform. The system has already successfully demonstrated its capability and value in optimizing, balancing and improving the stability of remote micro-grids at the Faroe Islands. Integrating Power Hub with Schneider Electric’s power and grid management software platform will enable us  to deliver a unique solution that addresses an important challenge of how to run an isolated electricity system in a safe, economically optimal manner, while making maximum use of renewables. Not only in our own part of the world, but globally” says Evert den Boer, Senior Vice President in DONG Energy.

“Alongside DONG Energy, Schneider Electric will bring its market-leader expertise in grid field devices, network automation and grid management systems in a uniquely modular approach to virtual power plants in order to overcome the operational challenges of dynamically balancing supply and demand.” confirms Frédéric Abbal, Executive Vice President of  Schneider Electric’s Energy Division. “Our joint architecture includes Advanced Distribution Management System (ADMS), Power Control System (PCS) and Renewable Control Center (RCC) applications offering real-time generation and demand forecasting, monitoring and control. Thanks to weather and load forecasting and fast load shedding capabilities, island utility operators will be able to operate sustainable, efficient and economically viable power systems and benefit local communities.”

Schneider Electric enjoys active collaborative partnerships with utilities to test and validate innovative solutions endeavouring to solve their operational, environmental and regulatory concerns. Schneider Electric’s global footprint in more than 100 countries and unique position on both the demand and supply side of the grid will connect all energy players (generators, network operators and prosumers).