Visions for the energy future. Thierry Van Craenenbroeck VREG

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1 Visions for the energy future Thierry Van Craenenbroeck VREG

2 Flexibility Potential Technology System + Networks Market Putting consumers at the heart of the energy policy, empowering them to engage in and benefit from the new smarter energy markets VREG VLAAMSE REGULATOR VAN DE ELEKTRICITEITS- EN GASMARKT P 2

3 Potential: ELIA grid users Febeliec/ELIA/Energyville survey 11/2013 w.r.t. transmission grid users identified 631 MW of demand side flexibility at least MW of which is unused only 3/10 flexible producers are already actively using their flexibility with different reaction speed VREG VLAAMSE REGULATOR VAN DE ELEKTRICITEITS- EN GASMARKT P 3

4 Potential: AMR distr. grid users Tertiary reserve for dynamic profiles (R3DP) increasing offer of demand side flexibility (including local generation) 50 MW contracted for MW contracted for 2015 Evaluation of short term sourcing of R3DP as of 2016 further increase of volume cap (to 150 MW?) use of excess offers for strategic reserves VREG VLAAMSE REGULATOR VAN DE ELEKTRICITEITS- EN GASMARKT P 4

5 Potential: LV grid users FORBEG-report 02/2014 on regulatory framework for demand side management REDI (Réseaux électriques durables et intelligents): full use of smart meters would create a potential energy shift of 40% in summer and up to 45% in winter Linear presented first results with sustained change in real consumption patterns Lampiris used SMS-alerts to assess users susceptibility for voluntary energy savings/shifts under emergency conditions VREG VLAAMSE REGULATOR VAN DE ELEKTRICITEITS- EN GASMARKT P 5

6 Technology Smart metering Upgrading network asset management and exploitation Improving market processes Enabling new services Generic model for data-communication Interface design specifications Use of international companion standard Communication to DSO systems and to grid user VREG VLAAMSE REGULATOR VAN DE ELEKTRICITEITS- EN GASMARKT P 6

7 Technology Applications behind the head-meter Energy efficiency (monitoring) Profile optimisation Delivery of system/network services Consumers motivated by Profit + Comfort + Community VREG VLAAMSE REGULATOR VAN DE ELEKTRICITEITS- EN GASMARKT P 7

8 System + Networks TSO s + DSO s role as market facilitators must be consistent with their responsibility to ensure secure system operation Active system management Defining the needs of the system in terms of products that can be delivered by grid users Active network management Mitigating network inadequacies to avoid market inefficiencies VREG VLAAMSE REGULATOR VAN DE ELEKTRICITEITS- EN GASMARKT P 8

9 System Balancing Contracted reserves (R3DP, SDR-SGR) Development of bid ladder for non-reserved flexibility New role: Balancing service provider (BSP) VREG VLAAMSE REGULATOR VAN DE ELEKTRICITEITS- EN GASMARKT P 9

10 Networks Congestion Local connection capacity Transformer capacity Transmission capacity Smart DSO incentives for mitigation Price signals: time-of-use (network tariffs) Activation signals: with(out) DSO compensation bids directly or via Flexibility service provider (FSP) Voltage control technical constraints Short circuit power technical constraints VREG VLAAMSE REGULATOR VAN DE ELEKTRICITEITS- EN GASMARKT P 10

11 Market Price signals Time-of-use (Belpex) Activation signals Intra-BRP volume activations Inter-BRP volume activations Market signals may induce grid users to more simultaneous grid use, leading to congestion VREG VLAAMSE REGULATOR VAN DE ELEKTRICITEITS- EN GASMARKT P 11

12 The regulatory transition matrix INSTRUMENT Wetgeving (ED +EB) THEMA Beslissingen VREG Technisch Reglement Distributie/ Marktreglement Toegangscontract/ reglement Atrias (MIG) Aansluitingscontract/ reglement Synergrid/ Febeg ELIA/ Netwerkcodes Marktmodel en marktrollen Structuring marktprocessen Metering marktprocessen Settlement marktprocessen SLP/SPP Allocatie Reconciliatie Slimme meters Tariefstructuur Flexibiliteit Investeringsbeleid Kwaliteitsbeleid VREG VLAAMSE REGULATOR VAN DE ELEKTRICITEITS- EN GASMARKT P 12

13 Conclusion FORBEG-report 02/2014 on regulatory framework for demand side management describes issues to be tackled Research (Linear e.a.) and pilot projects (Smart Meter, Smart Grid, R3DP) provide useful input for regulatory framework Coherent and future-proof approach mandatory Competitive, sustainable and secure energy supply Input stakeholders via Beleidsplatform and/or consultation processes VREG VLAAMSE REGULATOR VAN DE ELEKTRICITEITS- EN GASMARKT P 13

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