FLEXIBILITY HOW TO CONTRIBUTE TO THE STABILITY OF THE GRID THANKS TO THE FLEXIBILITY OF YOUR PRODUCTION PROCESSES?

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1 FLEXIBILITY HOW TO CONTRIBUTE TO THE STABILITY OF THE GRID THANKS TO THE FLEXIBILITY OF YOUR PRODUCTION PROCESSES? 1

2 The energy transition: decentralized power generation Past situation Current situation Future situation The energy transition is characterized by the 4 D s: de-carbonization, decentralization, digitalization, decreasing consumption 2

3 Evolution of installed capacity of solar and wind energy During the past 7 years, PV and onshore wind capacity have tripled and almost 900 MW of offshore capacity came into existence 3

4 Intermittency of solar and wind energy in a typical year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Wind Solar Within January wind output varies between 10% and 100% of its nominal capacity. Solar output is highly seasonal (high in summer and low in winter) and is also subject to day-to-day variations. 4

5 Uncertain weather forecasts lead to unpredictable power output Wind actuals vs forecast Solar actuals vs forecast Elia data 1/06/18 Elia data 1/06/18 The evening hours are less windy than predicted The full day less sunny than predicted 5

6 Problem: increasing share of renewable energy diminishes grid stability due to large fluctuations and uncertainty Solution: managing the flexibility of decentralized production and consumption is an excellent measure to strengthen the grid. 6

7 Increasing renewables pose a threat to grid stability, but lead to new market opportunities EDF Luminus balances portfolio and seizes opportunities on short term markets: 1. Day-ahead/intraday market 2. Balancing market Elia needs reserves to balance the grid in real time: R1, R2, R3 7

8 Luminus balances portfolio on the long and short term Energy Management Energy Optimization Year Quarter Month Week Day ahead Intraday Real time Click volumes Click / De-click volumes Nomination & Conditional Bid Remote capacity activation Flexibility 8

9 Luminus balances portfolio and seizes opportunities Elia data 1/06/18 Imbalance prices are highly volatile and penalizes the causer of the imbalance! 1. High imbalance prices = opportunity for producers 2. Low imbalance prices = opportunity for consumers 9

10 Elia needs reserves to balance the grid in real time Upward regulation volumes Primary reserves or R1 Very fast, automatic reserves at synchronous level Downward regulation volumes Secondary reserves or R2 Fast, automatic reserves at country level Tertiary reserves or R3 Slower reserves with manual activation 10

11 Real-time activation for production, as well as consumption Valid for Demand Side Valid for Supply Side 11

12 Which supply/demand processes are qualified as flexibility? Lighting Pumps CHP s Industrial Freezers Industrial Processes Back-Up Engines 12

13 How to activate production and consumption units correctly? Supply Side Capacity to Supply Inject more Capacity to Curtail Inject less Increase the injection on demand Ability to inject more on the grid Decrease the injection on demand Ability to inject less on the grid Demand - Side Capacity to Curtail Consume less Capacity to Consume Consume more Decrease the consumption on demand Ability to consume less and relieve the grid Increase the consumption on demand Ability to consume more and strengthen the grid 13

14 How to activate production and consumption units correctly? Supply Side Capacity to Supply Inject more Capacity to Curtail Inject less Increase the injection on demand Ability to inject more on the grid Decrease the injection on demand Ability to inject less on the grid Demand - Side Capacity to Curtail Consume less Capacity to Consume Consume more Decrease the consumption on demand Ability to consume less and relieve the grid Increase the consumption on demand Ability to consume more and strengthen the grid 14

15 How to activate production and consumption units correctly? Supply Side Capacity to Supply Inject more Capacity to Curtail Inject less Increase the injection on demand Ability to inject more on the grid Decrease the injection on demand Ability to inject less on the grid Demand - Side Capacity to Curtail Consume less Capacity to Consume Consume more Decrease the consumption on demand Ability to consume less and relieve the grid Increase the consumption on demand Ability to consume more and strengthen the grid 15

16 Aggregation of all flexible units into one large flexibility pool EDF Luminus computes available capacity from customers in real-time Valorization of the flexibility Repeat Activation requested 16

17 The added value of Luminus: access to all markets Aggregator Luminus Day-Ahead Balancing Reserves Day-Ahead Balancing Reserves VS 17

18 The added value of Luminus: access to all markets Aggregator Luminus Day-Ahead Balancing Reserves Day-Ahead Balancing Reserves VS 18

19 Luminus is the provider of a complete energy solution 19