SmartNet project: TSO-DSO interaction architectures to enable DER participation in ancillary services markets

Transcription

1 Smart TSO-DSO interaction schemes, market architectures and ICT Solutions for the integration of ancillary services from demand side management and distributed generation ENA Open Networks Advisory Board Meeting - London, 20 th December 2017 SmartNet project: TSO-DSO interaction architectures to enable DER participation in ancillary services markets Ivana Kockar (University of Strathclyde) This project has received funding from the European Union s Horizon 2020 research and innovation programme under grant agreement No

2 Agenda SmartNet project o Motivation o Outline o Overall project layout Five coordination schemes Market architecture design The simulation platform Cost Benefit Analysis (CBA) Some (preliminary) regulatory remarks 2

3 Motivations Increased reserve needs due to significant increase of variable RES Opportunities from new DER in distribution? Five key questions: Which ancillary services could be provided from entities located in distribution networks Which optimized modalities for managing the network at the TSO-DSO interface Which implications on the ongoing market coupling process How the architectures of dispatching services markets should be consequently revised What ICT on distribution-transmission border to guarantee observability and control Some actions can have a negative cross-network effect. For instance, TSO use of distributed resources for balancing purposes has the potential to exacerbate DSO constraints. Equally, whilst DSO use of innovative solutions, such as active network management, can deliver benefits to customers, if not managed properly they may in some cases counteract actions taken by the TSO (CEER Position Paper on the Future DSO and TSO Relationship Ref. C16-DS ) Winter package assigns a role to DSOs for local congestion management, but not for balancing EC (2016) Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on common rules for the internal market in electricity 3

4 The SmartNet project architectures for optimized interaction between TSOs and DSOs in managing the purchase of ancillary services from subjects located in distribution. three national cases (Italy, Denmark, Spain); ad hoc simulation platform (physical network, market and ICT) CBA to assess which TSO-DSO coordination scheme is optimal for the three countries. Use of full replica lab to test performance of real controller devices. Three physical pilots are also developed to demonstrate capability to monitoring and control distribution by the TSO and flexibility services that can be offered by distribution (thermal inertia of indoor swimming pools, distributed storage of radio-base stations). Project video: 4

5 Overall project layout 5

6 Comparison of the national cases in a simulation environment and laboratory testing Development of simulation software Definition of the reference scenario Physical layer Aggregation and bidding Market layer database Analysis of TSO-DSO coordination schemes Definition of flexible devices profiles Country-specific aspects and regulation Network planning and operation ICT specification and planning Cost Benefit Analysis Simulation Lab implementation of the simulation environment 6

7 TSO-DSO coordination schemes 5 possible coordination schemes TSOs & DSOs for AS by distributed flexibility resources A. Centralized AS market model B. Local AS market model C. Shared balancing responsibility model D. Common TSO-DSO AS market model E. Integrated flexibility market model 7

8 Five possible TSO-DSO coordination schemes: 1- Centralized AS market model 1 common ancillary services market managed by TSO Separate DSO process for checking distribution constraints (e.g. prequalification) 8

9 Five possible TSO-DSO coordination schemes: 2- Local AS market model Separate local market managed by DSO for local issues Transfer remaining flexibility to TSO ancillary services market level 9

10 Five possible TSO-DSO coordination schemes: 3- Shared balancing responsibility model Ancillary services market for transmission gridconnected resources managed by TSO Local market for distribution gridconnected resources Agreed pre-defined TSO- DSO scheduled profile 10

11 Five possible TSO-DSO coordination schemes: 4- Common TSO-DSO AS market model Common flexibility market managed jointly by TSO & DSO Variants: o One optimization with all grid constraints o Two optimizations: distribution & transmission constraints 11

12 Five possible TSO-DSO coordination schemes: 5- Integrated flexibility market model Common flexibility market managed by an independent / neutral market operator No priority for TSO, DSO or commercial market player 12

13 Summary coordination schemes Coordination scheme Role of the DSO Market organization (market operator) Allocation principle of flexibility from the distribution grid Centralized AS market model Limited to possible process of prequalification Common market (TSO) Priority for the TSO Organization of local market Local AS market model Buyer of flexibility for local congestion management Aggregation of resources to Central market (TSO) Local market (DSO) Priority for the DSO central market Organization of local market Shared Balancing Responsibility model Buyer of flexibility for local congestion management and Central market (TSO) Local market (DSO) Exclusive use for the DSO balancing Common TSO-DSO AS market model Organization of flexibility market in cooperation with TSO Buyer of flexibility for local Common market (TSO and DSO) Central market (TSO) Local market (DSO) Minimization of total costs of TSO and DSO congestion management Integrated Flexibility market model Buyer of flexibility for local congestion management Common market (independent market operator) Highest willingness to pay 13

14 Objectives of proposed Market Design Balancing services Congestion management o At the transmission grid level o At the distribution grid level (medium voltage) High Voltage L Transmission grid G In addition, the goal is also to avoid creating voltage problems in the distribution grid (medium voltage) Requirement for transmission and Medium Voltage L G LV L G distribution grid models in the market clearing algorithm Distribution grid 1 Distribution grid 2 Need for network observability and ability to forecast the near future network state 14

15 How the simulator works Simulation based on three layers Market layer Bidding and dispatching layer Physical layer time time step k time step k+1 time step k+2 15

16 How the simulator works time step k Physics simulation of controllable devices Market layer Network simulation Low-level operations Bidding and dispatching layer on network asset afrr Automatic Frequency Restoration Physical layer time 16

17 How the simulator works How the bidding process is simulated time step k Measurement of the devices status Market layer Evaluation of the available flexibility Development of the Bidding and dispatching layer flexibility bid Consideration of Physical layer different markets time time step k time step k+1 time step k+2 17

18 How the simulator works How the market process is simulated time step k Estimation of the network state at k+1 Market layer Collection of the bids from market players Market clearing Bidding and dispatching layer process Communication of the Physical layer market clearing outcome time time step k time step k+1 time step k+2 18

19 How the simulator works How the dispatching process is simulated time step k+1 Measurement of the devices status Market layer Evaluation of the available flexibility Bidding and dispatching layer Optimal repartition of the activation signal Physical layer time time step k time step k+1 time step k+2 19

20 How the simulator works How the physical layer is simulated time step k+1 Physics simulation of controllable devices Market layer Network simulation Low-level operations Bidding and dispatching layer on network asset afrr Automatic Frequency Restoration Physical layer time time step k time step k+1 time step k+2 20

21 Key Market Design Considerations Network Dimension Timing Dimension Bidding Dimension Clearing Dimension Pricing Dimension Which mathematical models for the distribution and transmission grids in the market clearing algorithm? What are the the market clearing frequency, time granularity and horizon? How market actors can bid? What market products are proposed? What are the objectives of the market clearing? What price is paid to the activated bids? 21

22 CBA among TSO-DSO coordination schemes Literature review: o EPRI/JRC o REALISEGRID o e-highway2050 Proposed indicators: o Enhanced provision of ancillary services: total balancing cost (vs social welfare) o Cost due to network limitations: comparing costs by taking network into account with Ideal situation (bus bar) o Reduction of unwanted measures : unexpected congestions solved with curtailment of load/generation, etc. Monetized at imbalance price or associated resource costs o Reduced network losses o Emissions savings: with standard emission rates for each generation technology and CO2 prices forecasted at studied horizon. ICT costs include communication, market clearing software). Steps : 1. Comparison of the coordination schemes in terms of functionalities and ICT 2. Convert each ICT system into a cost at target year Main focus on issues that can differ between coordination schemes. Macro-level: system perspective Micro-level: actors business case 22

23 Some regulatory (preliminary) remarks TSOs could need to share with DSOs part of responsibility for the provision of ancillary services if the contribution from entities in distribution will grow. a balance has to be sought for between local optimality and the implementation of a harmonized pan-european design. smaller DSOs have to integrate their efforts in order to be fit for the new responsibilities. real-time market architecture must to take into account the characteristics of the potential flexibility providers connected to distribution grids aggregators must be able to provide a simplified interface towards the market, hiding details of flexibility providers, and deliver efficient price signals to incentivize participation from distribution. viable business models must be available for all market participants, including DERs, aggregators and other customers. network planning will also have to facilitate better utilization of RES exploiting flexibility. 23

24 SmartNet-project webpage 24

25 SmartNet-Project.eu This presentation reflects only the author s view and the Innovation and Networks Executive Agency (INEA) is not responsible for any use that may be made of the information it contains.

26 Thank You Ivana Kockar Contact Information Affiliation: University of Strathclyde Phone: +44 (0)