Dong Energy installs smart grid at Faroe Islands

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Dong Energy and its Faroese partner SEV launched a smart grid system at Tórshavn in the Faroe Islands.

The Faroe Islands project uses a virtual power plant to recreate balance in an island power system by decoupling large industrial units automatically, in less than a second from the main power system and thereby avoid systemic blackouts. In more technical terms the virtual power plant delivers so-called fast frequency demand response.

Designed to protect against sudden power failures, or decreases in the power production, the virtual power plant system, Power Hub, developed by Dong Energy, will provide the Faroe Islands with a more secure energy supply, allowing them to integrate the five-fold increase in wind generation planned over the next two years.

The implementation of Power Hub at Faroe Islands is an important step in the advancement of this smart grid innovation. Power Hub has been developed by Dong Energy. In collaboration with Energinet.dk, Frauenhofer IWES, and Red Eléctrica de España it has been used as demonstration platform within the scope of Twenties Project, FP7 EC-GA no 249812.

Twenties has a total budget of $73.6 million, and a contribution by the European Commission of close to $41.5 million. Twenties aims to give Europe the capacity to increase renewable wind energy integration in the system without compromising its reliability or performance.

The Faroe Islands has quality wind resources, due to their position in the Atlantic Ocean. But the islands' power system is small and vulnerable with a high number of blackouts compared to continental Europe. The islands only have a few power plants, no interconnectors to other countries, and are challenged by harsh weather conditions with frequent storms.

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