Regulatory Recommendations for the Deployment of Flexibility
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1 Regulatory Recommendations for the Deployment of Flexibility Dipl.-Ing. Dr. techn. Werner FRIEDL Werner FRIEDL Energy Department Electric Energy Systems
2 AIT Austrian Institute of Technology EC Smart Grids Task Force Expert Group 3 Regulatory recommendations for smart grid deployment E-Control (Energie-Control Austria) CEER (Council of European Energy Regulators) 2
3 CEER/EC-activities to Smart Grids regulation CEER Status Review on European Regulatory Approaches Enabling Smart Grids Solutions ( Smart Regulation ) The definition of smart grids The regulatory and commercial challenges Plans for implementation of smart grids Encouraging innovative solutions in el. networks Cost benefit analysis Potential performance indicators Regulatory and Commercial Challenges Regulations vary at national level integration of RES/EV, customer engagement in DSR, data protection Roles and Responsibilities DSO major role - TSOs to a lesser extent Customers are involved in DSR in a few countries Incentive Mechanisms mechanisms are in place to incentivise DSOs to undertake innovation projects projects funded by network charges & other sources EG3 Flexibility Smart Grids PC SG CP SG SR SG Smart Regulation
4 Potential key issues last mile! Incentives Mechanisms Structure Opportunities that Smart grids could deliver interactions and synergies of gas, electricity, heat and cooling to increase flexibility 1 Smart Grids Demand Side Response & flexibility maximise incentives minimise entry barriers Regulatory and Commercial Potential Barriers, including: Arrangements: data access (previous work) role of the DSOs/TSOs use of storage trading/provision of smart grid services use market mechanism whenever possible! 4
5 WP I WP II WP III Work programme of EC-Smart Grid Task Force (EG3) in 2014 Issues: Flexibility Regulatory and commercial arrangements Incentives, mechanism & structure Topics to cover: Deliverables: structured into three sequential phases Q Q Q Q Q Q WP I WP II WP III 5
6 Executive Summary Flexibility Regulatory and Commercial Arrangements Incentives Recommendations Annex 6
7 Flexibility Definition of Flexibility (gas and electricity!) Rational. Why do we need flexibility? Consumer Empowerment Flexibility services 7
8 Users: list of Flexibility services national differences DSO TSO frequency control primary secondary tertiary Provider: TSO frequency response domestic consumers TSO short term operating reserve DSO TSO TSO fast response peak shifting (avoid grid reinforcement) commercial consumers overall load reduction Supplier DSO TSO constraints management (load reduction) portfolio optimization industrial consumers Supplier peak shifting Supplier valley filling distributed generators DSO fault management DSO DSO TSO voltage control losses reduction generators (> 5 MW) TSO black start reserve 8
9 Flexibility Key Enablers: Smart Appliances and Smart Meters Regulation & Codes Grid and retail products & tariffs Market rules and processes ICT technology and standards Value of flexibility Benefits for providers of flexibility services Benefits for users of flexibility services Maximising the value of Flexibility Services 9
10 Regulatory and Commercial Arrangements How to realise consumer flexibility? 10
11 Regulatory and Commercial Arrangements Roles and responsibilities Aggregator 11
12 Incentives 12
13 Incentives 13
14 Recommendations R #3: Contractual arrangements Market Rules and Commercial Arrangements 14
15 Recommendations R #6: Standardised measurement methodology for flexibility Measurement of Flexibility Consumers R #9: Communication & coordination for secure grid operation Grid Operation 15
16 Recommendations R #12: Incentivise grid operators to enable and use flexibility Incentives 16
17 Next Steps 17
18 AIT Austrian Institute of Technology your ingenious partner Dipl.-Ing. Dr. techn. Werner FRIEDL AIT Austrian Institute of Technology GmbH Giefinggasse Vienna Austria T M werner.friedl@ait.ac.at
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