Power System & Markets introduction

Transcription

1 Power System & Markets introduction Lars Henrik Hansen DONG Energy Smart & Cool project Skærbæk, January 18 th, 2012

2 Outline Current power markets in DK VPP market integration BRP Price signal market integration 2

3 Synchronous Grids in Europe Source: ENTSO-E 3

4 GENERATION - HCASA HOW WE TRADE The Danish power market consists of two zones: Western Denmark (DK1) and Eastern Denmark (DK2) DONG Energy Generation sells electricity to the wholesale markets of North European power exchanges such as Nord Pool and the German EEX European Energy Exchange. The price of electricity is determined on the basis of supply and demand. The price is highly dependent on the water reservoirs in Norway and Sweden and on the general supply and demand situation in Northern Europe. NORWAY (DC) 950 MW 1000 MW DK1 SWEDEN (DC) 620 MW 520 MW SWEDEN (AC) 1700 MW 1300 MW Large quantities of precipitation in Scandinavia increase power production at Scandinavian hydropower plants which leads to lower electricity prices whereas limited precipitation results in reduced power production and therefore increased prices. 950 MW 1500 MW GERMANY (AC) Storebælt (DC) 600 MW 600 MW DK2 550 MW 550 MW 4 GERMANY (DC)

5 Electrical power markets Product Players Market Elspot Day Ahead Energy / hr Gate closure at 12 day ahead) Whole sale market players ca. 20 Northern europe DK-No-Se-Fi-De Elbas Intraday Energy / hr Gate closure 1-2 h. before hour of delivery Whole sale market players < 5 ENERGY Nordic, DK-No-Se-Fi De is partly coupled Manual reg. reserves Regulation Up or down regulation Gate closure 45 min. before delivery Repons in 5-15 min Central Power plants, CHP plants (flexible load) Nordic DK-No-Se-Fi Auto reg. reserves Ancillary services Automatic regulation. Constant reservation pr. month. Response in seconds or minutes Central power plants: DONG Energy & Vattenfall. POWER Primary reg. reserv. Two parts: National and "free part" Frequency support Possible development National Competion and competion from abroad via interconnections Skagerak New power plants? - Do - New players: CHP plants, waste plants, players in Germany Reduced demand due to Skagerak 4. Increased demand due to increased wind DK1: National competition. DK2: National demand: only national competition. "Free part": nordic competition 5

6 Market dynamics Elspot Day(k) Elspot market Elspot market operation Market clearing of Day(k) Hourly Meter Data Acquisition Elspot + Elbas settlement Elbas Hour(3) Intra Hour Elbas market T k-1 k k+1 k+2 Elbas market operation 0 1 Power Reg.power bidding Reserves Reg.power activation Bid operation Tertiary regulation Day Hour Minutes 6 Time

7 Elspot market Spot price Spot price Cost Kr/MWh Hourly "supply curve" x 24 Power MW Elspot prices Hour Cost 0-1 Xx 1-2 Xx 2-3 Xx Xx Committed power Committed power 7

8 Electrical system HVDC 8

9 Actor identification Generation TSO DSO 1 Consumers HVDC DSO 2 Price zone 9

10 Actors & Power markets in DK1 & DK2 Monopoly Transmission Assets Controls Free Market Generation Power BR 1 Bids & Contract TSO Bids & Contract Power reserves Power BR 11 Energy trading Distribution DSO 1 Consumers Contract Retailers Retailer 1 Contract NOIS list NordPool Wholesale DSO 2 Retailer 2 Wholesale BR 1 Retailer 3 DSO 84 Wholesale BR 11 Retailer 20

11 VPP market integration 11

12 Power Hub our definition of a Virtual Power Plant The VPP: is a group of aggregated small units, which are able to offer operational flexibility to the surrounding power world/grid There are 3 main components in a VPP: Intelligence: Ensuring efficient operation within the VPP and offering flexibility to the outside world Infra structure: IT platform, measurements and communication channels are needed to tie real-time applications and business applications together Flexible units: The individual production/storage/consumption units The Power Hub is a service provider (economical VPP) 12

13 VPP market integration Generation side Actors TSO Power BR Aggregator VPP customers 13

14 VPP VPP Control Control interface VPP market integration Consumption side Actors TSO Wholesale BR Retailers Consumers Aggregators VPP customers 15

15 BRP Price signal market integration 16

16 Price signal definition of a price flexible consumer approach The price flexible consumer: is an electrical units, which is able to offer operational flexibility to the surrounding power world/grid There are 3 main components in a flexible consumer system: Intelligence: Control system, which based stochastic models of the flexible units responsiveness can compute an price signal in order to provide flexibility to the outside world Infra structure: IT platform, measurements and communication channels are needed to tie real-time applications and business applications together Flexible units: The individual storage/consumption units responsive to a price signal 17

17 Consumption(k) Conceptual design: Elspot market integration Ref(k) 12 + _ Spot(k) Model Predictive Controller _ + Price signal Flexible unit 2 Flexible unit 1 Flexible unit N Metering(k) + Flexible consumer estimation model _ + Legend: Hourly 5 minute Ref(k) = contractual Elspot consumption in hour k Spot(k) = Elspot price in hour k 18

18 Elspot market integration Actors TSO Wholesale BR Retailers Consumers Price flexible customers 20

19 Final remarks Concerning VPP's "Production" Power Hub is already operating in Elspot and Primary Regulation "Consumption" Power Hub has been operating in Elspot for a week now Benefits: helps retailers or wholesalers (BR) to fulfill their contracts can be used to provide regulation services Concerning Price signals The provider of price signals should only be retailers or wholesalers (BR), otherwise we will get a complicated after market settlement Benefits: helps retailers or wholesalers (BR) to fulfill their contracts can be used to provide regulation services Without changing the current electrical power market setup, price signal system designs can be applied already today 21