The future of DSOs in view of EU s Winter Package with a consumer centered clean energy transition

Transcription

1 The future of DSOs in view of EU s Winter Package with a consumer centered clean energy transition Kick-off meeting: CenSES User case on Prosumers SINTEF Energy, Trondheim, 5 Oct 2017 (Based on trial lecture given at NTNU 3 Feb 2017) Karen Byskov Lindberg Adjunct Associate Professor Dept. of Electric Power Engineering Norwegian University of Science and Technology Senior Engineer Dept. of Energy, Section for energy use and technologies Norwegian Water Resources and Energy Directorate

2 Content 1. EU s new legislative proposal Background Utilising local flexibility 2. Future of the DSO Challenges & Benefits 3. Conclusion

3 Background: Why now? EU s climate policy international climate negotiations Climate negotiations EU s energy & climate policy 1997: Kyoto 2005: EU Emission Trading System (ETS) 2009: Copenhagen 2007: targets & (2009) RES targets per country 2015: Paris 2014: 2030 climate and energy framework & common EU RES target Implement targets in the legislation 2016: EU s clean energy package harmonise energy & climate targets follow up of the Energy Union affordability, climate-friendly and security of supply 3

4 EU s new legislative proposal Clean Energy Package Released on 30 November 2016 Changes of several directives, inter alia: Electricity Market Directive Renewable Energy Directive Energy Efficiency Directive Energy Performance of Buildings Directive M. Šefčovič, in charge of Energy Union, and M. A. Cañete, in charge of Climate Action and Energy. Consumer centered Clean energy for all Stronger rights to produce and deliver RES Less regulatory burdens EMPOWER and PROTECT the consumer

5 Why consumer focused? Current political landscape Right wing parties & Brexit EU is shivering Consumer first INVOLVE and ENGAGE the public The technology development happens at consumer level Local renewable energy & flexible resources to reach EU s overall renewable target to reduce EU s energy import dependency RES at low cost, create jobs, growth and attract investments BUT; local RES creates challenges changing rules for the distribution system Vauban, Freiburg

6 Drivers for the consumers Technology costs are falling PV Electric vehicles Batteries Information & communication technology is boosting Real time pricing and billing Blockchain and bitcoins? New business models for Prosumers Aggregators Virtual power plants (VPP)

7 New features of the Electricity Market Directive (EMD) Priority dispatch of RES disappears To avoid negative prices Who shall curtail? aggregator? DSO? Allow/require the DSO to utilise local flexibility Congestion management using flexibility avoid or postpone grid investments BUT; requires stronger regulation of unbundling DSO shall Promote energy efficiency, local RES and storage 7

8 Power Market Where to utilise flexibility? (Application) 1 Day-a-head 2 Balancing market 3 Congestion management Real consumption Production plan Up- and downwards regulation Source: nve.no: Wholesale market, Source: (Bye, Bjørndal, Doorman, Kjølle and Riis, 2010) Flere og riktigere priser Et mer effektivt kraftsystem. Ekspertutvalget om driften av kraftsystemet 8

9 Research on flexibility A search on Demand Response, Demand Side Management, Responsive load, Load control Prosumers, flexible demand, storage, batteries, charging of electric vehicles (EV) Smart grid, Aggregators, VPP, balancing services, time-of-use rates, peak pricing gave countless papers on Value for the consumers or prosumers Value for aggregators or VPPs Value for power system BUT; costs of IT-systems often disregarded the market for flexibility is not determined Cost-benefit values are based on assumptions (O Connell, N. et al., 2014) Benefits and challenges of electrical demand response: A critical review. Renewable and Sustainable Energy Reviews, Vol. 39 (Strbac, G., 2008) Demand side management: Benefits and challenges. Energy Policy, Vol. 36 9

10 Challenges & Benefits for DSO EU s new legislation demands Development of markets for flexibility DSOs shall Allow more actors Improve efficiency by utilising DG, demand response and/or storage New flexibility market Not allowed to own storage (due to unbundling) Allowed to perform congestion management Communication with the TSO EU DSO entity Challenge for society Unbundling requirements not strengthened 10

11 Cooperation between the entities Flexibility markets aggregator DSO - congestion management Must know that the aggregator responds, and that the flex resouce is available prosumer 3 Non-freq. ancillary services 2 Ancillary services TSO - frequency - voltage 1 Day-a-head 2 Balancing markets These relations are not determined! 11

12 Aggregator vs. DSO Reliability & Responsibility Google demands high security of supply & quality of supply AggriFlex DSO use flexible resources towards DSO, TSO, balancing markets or day-a-head increase income & utilisation of the flex resource increased efficiency Needs to know that the flex resource is available at the 20 most critical hours how? Proposal DSO could set red light in the 20 max hours Need for digitalising and automation thesmartstore.no 12

13 Future of the DSO Today The grid is adjusted to the load Future TSO DSO Adjust the load (operation) according to the grid Requires Automatisation & IT Adaptability, willingness & interest in new solutions and new technology DSO NEW paradigm shift of the DSOs is needed 13

14 Conclusion Consumer Key to reach climate & renewable goals DSOs are required to utilise untapped flexibility resources DSOs must ENGAGE and INVOLVE the consumers Digitalisation & information technology Prerequisite to utilise flexibility and local RES the role of the DSO is evolving New relations will be build TSO Independent aggregators forces changes in the operation of the distribution grid The future is electric! But if it is flexible, it is also more automatic. 14

15 Acknowledgements Christina Sepulveda, The Energy Market Regulation Department, NVE Ellen Skaansar, The Energy Department, NVE Marie Byskov Lindberg, PhD candidate, TIK centre, UiO Anne Sofie Risnes, Statnett Stig Ottesen, PhD candidate, NTNU/eSmartSystems Bjørn Thorud, Multiconsult Carl Fredrik Tjerandsen, Powel Thank you Karen Byskov Lindberg 15