Demand Response from the TSOs point of view

Transcription

1 Demand Response from the TSOs point of view European Commission DG ENER DG JRC Demand Response status in Member States: Mapping through real case experiences Oct 15 th Brussels Hans Vandenbroucke ELIA Energy Management - Architecture

2 Content Belgian Context Demand side response Demand side management Frequency Containment reserves Fast interruptible load contract for TSO clients Interruptible load contract for DSO clients Aggregated Power Plant Conclusions 2

3 Context - Supply of ancillary services Very high level of market concentration in Belgium - 1 large player owning almost ¾ of production capacity - Only 5 producers able to deliver ancillary services, some of them with single sites only Limited flexible fossil plants MW inflexible Nuclear (biggest 1076 MW) MW CCGTs but non-spinning - Green energy inflexible by subsidy schemes ( /MWh) Ownership structure of Belgian generation park ELECTRABEL SA SPE-LUMINUS ENERGIELEVERANCIER E.ON ZANDVLIET POWER NV MARCINELLE ENERGIE T-POWER Others 3

4 Context - Demand for ancillary services Installed capacity wind and PV Belgium [MW] Wind [MW] Total Solar [MW] Total 4

5 Demand Side Response: reaction on real-time imbalance prices Double imbalance pricing (2001) vs. Single imbalance pricing (2012) Graphs below are showing that demand side participation on DSO-level is possible by just adapting the imbalance tariffs. No complex developments are required regarding aggregation & settlement. (Green full line nominations Green dotted line measurements) BRPs use demand side response in their portfolio for self-balancing. Moreover, BRP-contract foresees the option for BRPs to deviate in real time from their individual balanced position in order to support the restoration of the system imbalance. 5

6 Demand Side Management R1 load: FCR through load on TSO grid Elia developed a combination of asymmetric and symmetric FCR products in order to allow a demand side participation. Currently Elia has contracted 30,5MW of R1 load. R1load = tailored to industrial consumers + compliant with Entso-e requirements Activated for only deviations > 100mHz leads to a limited number of activations per year = limited impact on the Industrial Processes Linear modulation of the off-take on the frequency with a max activation time of 30seconds for the entire volume Grid users or a pool of grid users (aggregator) connected to the transmission grid can participate in the yearly tendering The Supplier is remunerated for the capacity he makes available. No remuneration for the activation 6

7 Demand side management: FRR though Interruptible load on TSO Grid - ICH Elia is procuring currently 261MW of R3 reserves provided by TSO consumers This ancillary service is directly provided by consumers and aggregators The impact on the perimeter of the BRP is neutralized by replacing per client the metering data by the nomination in case of activation Product is adapted to load constraints: Limited number of activations per year and at least 24 hours between 2 interruptions Limitation to total duration of interruption over the contractual period (24h) Use of a shedding limit Bidding price is derived from day ahead prices and bid prices for other balancing energy products Pooling allowed Highly flexible product to deal with outages Elia activates this reserve by remote control Grid user s offtake must drop below shedding limit within 3 minutes Never any prior warning before Elia activates this service This product is the most efficient solution to deal with sudden outages of big power plants: requires limited number of quick reactions per year 7

8 Demand Side Management: FRR though Interruptible load on DSO Grid In the framework of an experimentation, Elia is procuring currently 10MW of R3 reserves sourced from large DSO consumers (extension to 50MW in 2014) This ancillary service is directly provided by aggregators; aggregation is allowed over different DSOs and different BRPs/suppliers Complex to develop a DSO product which doesn t have a negative impact on market actors (no nominations, difficult to know the exact activation split per BRP) A pragmatic solution exist which is avoiding a negative impact on the concerned parties: No correction nor neutralization of the activated energy in the imbalance volume calculation of the BRP Produced energy of supplier/brp is compensated through single imbalance tariffs (tariff > retail price) Consumer can offer sheddable load to TSO without specific settlement with BRP/Supplier No activation price is paid for an activation; corresponding volumes aren t considered in the imbalance volume so not covered by imbalance settlement, Capacity-only product: Product is activated after all other available FRR, so only if big imbalances occur This product can only be used for limited amount of reserves and cannot be bid in into a merit order list (no price) Further enhancements need to be analyzed, in close cooperation with stakeholders 8

9 Demand Side Management: APP: Aggregated Power Plant Until the new Bid Ladder balancing platform is developed, Elia can use the current contractual framework to allow generation and load to offer their flexibility to Elia, by means of an aggregation into an virtual power plant Elia can activate extra flexibility within this existing framework A Pool can offer flexibility to Elia: Only to be offered by parties who have signed an BRP Contract by Elia for load/production that is a part of their BRP portfolio. Pre-requisite: connection to the ELIA IT applications The provider is remunerated for the activation at the offered price: Free (if necessary negative) prices, which also allows Green Energy to recuperate the opportunity costs of lost certificates 9

10 Demand Side Management Overview Product Product Sourcing Supplied by Load connected to FCR - R1 Load 30MW Load modulation in case of large Frequency dips (as from Freq <49,900Hz) Yearly Contracted Capacity BSP, open for aggregation Transmission Grid FRR ICH 261MW Decrease of Off-take to a predefined offtake level, within 3 minutes Yearly Contracted Capacity BSP, open for aggregation Transmission Grid FRR APP Increase/Decrease of Off-take/generation within 15 minutes. Day ahead, free bids at free price per 15min BRP Transmission & Distribution Grid FRR R3 Dynamic Profile (from 2014) Max 50MW Decrease of Off-take with a predefined volume. within 15 minutes Yearly Contracted Capacity BSP, open for aggregation Transmission & Distribution Grid Above mentioned specific products enable the participation of (significant volumes) of resources which cannot be offered through standard products. The current NC Balancing forces all TSOs to cover the tail of the dimensioning requirements with a high qualitative expensive reserve product with unlimited number of activation while this can also be done by less expensive products with a limited number of activations. Therefore, ELIA promotes that, subject to CBA, a TSO shall be entitled to procure balancing reserve which can only be activated a limited number of times for a certain period where it covers the TSO needs. 10

11 Conclusions Experiences by Elia Demand is able to participate in 2 different ways in balancing markets: demand side response (price signals) and demand side management (activation request of bid) Large load consumers often face technical constraints when bidding into the balancing market. Possible, specific solutions are: Limit number of activations per year Pooling shedding limit/ price formula But load can deliver fast reaction times and is sometimes more cost efficient for particular purposes It is possible to allow end-users (via aggregators or not) to participate directly into the balancing market. However this requires specific solutions in order to limit the financial impact for BRPs/suppliers: Solution for TSO clients is based on nomination of the BRP More complex solution required for DSO clients as no individual nomination exist cooperation with DSO, Suppliers, BRPs and BSP needed to set-up correct contractual/regulatory framework. The NC on balancing should leave sufficient opening/flexibility for demand side participation, in particular when a BSP (end consumer/aggregator) wants to offer his services directly to the TSO and in particular for demand side response. 11

12 Thank you for your attention For more information, contact Elia: Hans Vandenbroucke Energy Management - Architecture ELIA 12