A Network Reference Model for Distribution Regulation and Planning: the Spanish Case



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A Network Reference Model for Distribution Regulation and Planning: the Spanish Case Jesús Pascual Peco González Instituto de Investigación Tecnológica (IIT) Universidad Pontificia Comillas, Madrid http://www.iit.upco.es peco@iit.upco.es

Network Reference Models: two types From Scratch: to design the whole distribution network that connects customers of electricity to the transmission substations without taking into account the actual network, but considering the same technical constraints and planning principles. Expansion Planning: to design the distribution network expansion in order to supply both an horizontal and vertical demand increase optimally, given the actual network as well as considering the same technical constraints and planning principles. Institute for Research in Technology (IIT) - 2

Main features of Network Reference Models Main Features Large scale ( > 1 million customers) Both urban & rural areas Detailed Geographical Features: Settlements identification Automatic street map building Forbidden ways through Aerial/underground areas Voltage, capacity & reliability constraints Detailed standardized equipment and parameter library Detailed reliability assessment Institute for Research in Technology (IIT) - 3

Network Reference Models (NRM): scope Network Structure Types and number of facilities Transmission substations > 15 HV network (36, 220) kv HV/MV substations > 150 MV network (1, 36) kv MV/LV transformers > 15000 LV network < 1kV LV customers > 10 6 Input Data: HV, MV and LV customers, and transmission substations Results of the model: LV, MV & HV network, HV/MV and MV/LV substations Institute for Research in Technology (IIT) - 4

Regulatory applications of NRM Revenue Cap: Remuneration Formula [ ] i i i + CPI X + Y + Q D i i Rn+ 1 = Rn 1 n+ 1 n+ 1 n ± n, n 1 To set the initial remuneration: Reference Network Model (from scratch) To set the remuneration according to an activity increase: Reference Network Model (expansion planning) To determine the objective network losses and quality of service indexes To determine a set of efficient distribution tariffs Institute for Research in Technology (IIT) - 5

The Desired Characteristics of a NRM 1. The service areas are modelled as accurately as possible, and 2. If the model considers optimal planning principles, a sound standardized equipment library, and the same technical constraints as in actual networks, 1. Both rural and urban areas are optimized even-handedly 2. It is useful for assessing utility s network technical efficiency 3. The reference network is useful as a benchmark of actual networks Institute for Research in Technology (IIT) - 6

Input Data Customers and transmission substations georeferenced data Coordinates x,y,z Contracted power and billed energy. Standardized equipment Substations, transformers, lines, cables, capacitors... Maintenance crews, protective devices... Set of technical and economic parameters Rate of return, demand increase rate, loss factor, power factor, simultaneity coefficients... Geographic data and constraints Institute for Research in Technology (IIT) - 7

The modelling of Service Areas 1. To identify and to model settlements To identify groups of customers meeting some criteria To build street maps within settlements 2. To classify areas according to the quality of service Urban, semi-urban, rural Reliability indexes constraints 3. To set aerial and underground rates of networks (according to the service areas considered) 4. To process geographical features Orography, forests, forbidden paths though... Institute for Research in Technology (IIT) - 8

Identification of Settlements A distribution area comprising more than 1 million customers The outline of settlements (automatically identified) are depicted in red. Institute for Research in Technology (IIT) - 9

The model builds street maps automatically To identify the outline of settlements To build the street map using the GPS coordinates of customers Note that line routes cannot cross wide streets a lot of times, and that line routes can cross neither blocks nor parks Institute for Research in Technology (IIT) - 10

Global Approach to the Planning Problem OPTIMIZATION Considering simultaneously: Geographical features of the service areas A global approach to network optimization The quality of service These are key issues to optimize rural and urban areas even-handedly. Institute for Research in Technology (IIT) - 11

Global Approach to the Planning Problem Min z Subject to: = NPV ( investment + losses + O & M ) Capacity, voltage drop and geographical constraints. Present Value: investment+losses+o&m demand stage 1 time Network must be feasible at the end of stage 1. Several types and sizes of conductors, substations, transformers may be used to meet this sizing criteria. Institute for Research in Technology (IIT) - 12

Geographical features: approach Planning Modules GIS Transmission substations HV network A Location costs Path Optimization B HV/MV substations MV network MV/LV transformers LV network LV customers A B Substations & transformers coordinates Lines & cables ends Institute for Research in Technology (IIT) - 13

The quality of service Deterministic Methods. A constant failure rate for each asset. Two possibilities: A) Minimization of: Investment + Network losses + Non-supplied Energy B) Minimization of: Investment + Network losses. Subject to reliability constraints. The goal: to obtain the optimum equilibrium between investment and quality Institute for Research in Technology (IIT) - 14

Case study: An urban MV network Street map built by the model. Note the crossings in the large avenues Institute for Research in Technology (IIT) - 15

Case Study: rural MV network & orography Small rural area in the middle of the mountains. Note the impact that the orography has on the line paths. Overall costs and losses increase roughly 7% Nature reserve Institute for Research in Technology (IIT) - 16

Case Study: investment to improve reliability of MV network Large area: 50,000 km 2, 4000MW peak demand. Input data: HV/MV substations, a radial MV network whose cost is 16 million, MV/LV transformers and MV customers. Output: investment in reclosers, manual sectionalizers, fault indicators, maintenance teams, alternative supplies and network reinforcements. Institute for Research in Technology (IIT) - 17

Case Study: reliability & HV/MV substations Large area: 50,000 km 2. HV/MV planning from scratch and MV network considering two QoS scenarios. Input data: transmission substations and MV/LV transformers and MV customers. Institute for Research in Technology (IIT) - 18

Case study: An urban/rural MV network HV/MV substation Alternative feeder supply Institute for Research in Technology (IIT) - 19

Reliability & HV/MV substations: ENS=0.6 /kwh Institute for Research in Technology (IIT) - 20

Reliability & HV/MV substations: ENS=1.8 /kwh Institute for Research in Technology (IIT) - 21

Reliability & HV/MV substations: comparison TIEPI 0.6 /kwh 1.8 /kwh TIEPI 13.0 hours 9.4 5.6 2.1 4.8 2.2 hours Institute for Research in Technology (IIT) - 22

Conclusions Network Reference Models are very flexible tools and can be used for achieving different goals. (Locations of HV/MV substations and/or MV/LV transformers may be planned from scratch or may be fixed beforehand) Distribution network investment, quality of supply and losses are closely linked. Different networks can be obtained according to losses and/or QoS targets imposed to the model. (inv) (inv+o&m) Losses QoS Institute for Research in Technology (IIT) - 23

Conclusions The Regulator should set beforehand: the network sizing criteria, the quality of service targets, the standardized equipment library, economic & technical parameters, in order to run the model and obtain a reference network. Its final use by the Regulator depends on these criteria to a large extent. The differences between actual and reference networks are closely linked to the aforementioned criteria, but the results usually match. Significant differences between reference and actual network should trigger the signal that something weird is happening: (i) actual network over/under investment or QoS deficiencies, (ii) inappropriate standarized equipment used by the model Institute for Research in Technology (IIT) - 24

Conclusions A Network Reference Model is a definitive tool for assisting Regulators. It decreases the asymmetry of information significantly. It is a useful tool to assess network costs, DG s impact, losses and reliability, and therefore the distribution utility s networks technical efficiency. Currently, the Spanish Regulatory Commission is using a NRM developed by IIT. A similar model, developed also by IIT, has been used in Chile and Argentina in previous tariff revisions. Institute for Research in Technology (IIT) - 25

Conclusions Graphical User Interface to introduce input data: customers, parameters, standard equipment A conventional GIS may be used to display and query the results (shape files) of the model and actual networks Institute for Research in Technology (IIT) - 26

Projects Assessing the impact of installing photovoltaic energy cells on the distribution network Chilean Tariff Revision 2000, for Chilectra S.A. (Chile) Gran Buenos Aires Tariff Revision 2000, for ENRE (Argentina) Chilean Tariff Revision 2004, for Chilectra S.A. (Chile) Chilean Tariff Revision 2004, for SYNEX-CNE (Chile) Spanish Tariff Revision 2004-2006, for CNE (Spain) Institute for Research in Technology (IIT) - 27