Market Based demand Response

Transcription

1 Market Based demand Response Results from Norwegian Research Projects IAE/DSM workshop, Trondheim 18 Ove April, S. Grande 2012 Senior Research Scientist SINTEF Energy Research Technology for a better society 1

2 Outline Introduction Marked Based Demand Response Value of demand side price elasticity Examples from Norwegian pilot tests lessons learned Load shifting remote control Innovative Power contract: "Fixed Price with return option" EcoGrid EU (FP7) Large scale smartgrid demonstration of an advanced market concept Technology for a better society 2

3 Ø Nordic system: 91 GW (47 GW hydro) Ø Central European system: 667 GW NorNed Power Exchange: Nord Pool Common Balancing Market Nordic system Central European system Ø Development towards integration in Europe: n Market coupling DA (TLC, CWE) n Implicit auction on all HVDC links n Integration of balancing markets Technology for a better society 3

4 Electricity consumption in Norway Total 127 TWh (07) Heating: ca 35 TWh Large industrials: ca 40 TWh Peak load: MW A large (theoretical) DR potential Industry ~3 000 MW Residential and commercial: ~1 700 MW Production (99 % Hydro): average 130 TWh/Year 50 TWh variation between wettest and driest year Technology for a better society 4

5 Monopoly - competetion Monopoly Market Authorities (NVE) Revenue cap regulation TSO Revenue (Statnett) cap regulation RPM Market operator (NordPool) Elspot DSO Nettselskap Agreements Power supplier Kraftleverand ø r Network tariff Energy price Customers Sluttbruker Technology for a better society

6 Demand side participation in market and system operation" Market phases Control phases Price hedging phase Spot phase Pre-operational phase Operational phase Time Price Quantity Production planning / Bidding Regulating Power Spot trade Bilateral trade Option Market for Reserves Price dependent load reduction Remote controlled or automatic load reduction Technology for a better society 6

7 Market phases Control phases Value of demand side price elasticity Price p 0 Manual load shifting Automatic load shifting Price hedging phase Spot phase Price Option Market for Reserves Quantity Price dependant load reduction Pre- operational phase Production planning / Bidding Regulating Power Remote controlled load reduction Operational phase Spot trade 2 Bilateral trade Time p 1 Pricedependent response Original demand Less than100 MW load reduction would have reduced the price from 13 NOK to 1 NOK V 1 V 0 Load Technology for a better society 7

8 Price and CO2 emision impact Marg. Cost [ /MWh] (CO 2 ~30 /t) 80 CO 2 emission 0,5-1 t/mwh Consumption peak Gas b Gas p Oil cond Coal 40 Lignite nuclear Hydro/wind Volume (MW) Technology for a better society 8

9 Benefit for customers /MWh Cost reduction for the Responsive customer Every customer will benefit from the reduced average price Δp Technology for a better society 9

10 Present contract types Norway Standard Variable Price (SVP) Spot Price (SP) Fixed Price (FP) SVP S P F P Technology for a better society 10

11 Status AMR Norway Full roll out of Automated Metering and Control systems (AMS) by the end of 2016 Functional requirement Register and store with a sampling frequency of 60 min (optional15 min ) Disconnect or limit power output Exchange price information Prepared for both output and input of energy on customer (prosumer) level Standardized interface for communication with external equipment (display) Connectable to other meter equipment Secure storage of data in case of voltage interruption Data security measures Technology for a better society 11

12 Market based Demand Response Project ( ) Pilots 1. Remotely controlled Load shifting" peak load reduction 2. Fixed Price with Return option - reduction of energy in shortage periods 3. Automatic Demand Response (ADR) 4. Smart house ToD tariff housing cooperative Technology for a better society 12

13 Household electricity consump2on in Norway Water heating Space heating Approx 80% of electricity consumption relates to water and space heating. Source: : EU/ REMODECE Technology for a better society 13

14 Pilot I Remotely controlled Load shifting ToD tariff Test group: 41 household customers Network tariff: Time of Day tariff with high price in periods with expected shortage (+ 0,10, Mon-Fri, hour 9-11 and 17-19) Energy price - Hourly spot price (free choice of supplier) Remote control of water heaters (2-14 kw) via AMR in the defined periods El-button reminder Technology for a better society 14

15 Pilot I Results Positive response from all customers. No cold water complaints. Automatic load reduction in peak load periods gives a stable demand response Accumulated MWh/h load reduction in peak hour indicated. time Technology for a better society 15

16 Pilot II Fixed price with return option (FWR) Fixed Volume - financial contract combined with spot price settlement Objective /characteristics Give incentives to load reduction in periods with shortage Retaining the advantages of fixed price contracts with regard to predictable costs Reduce the risk for the supplier. Ø 2500 household customers Technology for a better society 16

17 kwh/h Fixed price volume Sale Real consumption time Price Elspot Fixed price time Technology for a better society 17

18 Demand response from FWR customers compared to alternative contracts ,4% [kwh/quarter] ,5% +7,7% FWR Spot SVP Q1 2004Q2 2004Q3 2004Q4 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 [Quarter] Technology for a better society 18

19 EcoGrid EU (FP7 Energy ) , 20, 6 M Ø Main objectives: To demonstrate operation of a power system with more than 50 % renewable sources To implement ICT systems and innovative market solutions - offering TSOs additional and more efficient balancing services To enhance small consumer and local producers to participate in the power market through real-time operation, energy storage and savings Technology for a better society 19

20 The Scope of a Real-time Market Quantity Intra-day (Elbas) Regulating power market Market-based operation Direct control EcoGrid Realtime Market The EcoGrid Real-time Market will be an integrated part of the current power markets and supports the need of direct control options on a very short time scale AGC/LFC/ Frequencycontrolled reserves Inertia Days Hours Minutes Seconds Now Time scale Volatility 20 Technology for a better society

21 EcoGrid EU market concept Test period autumn 2012 spring 2014 Test site: Bornholm Operated by the Danish DSO Østkraft Demonstration in a real system with > 50 % RES Part of the Nordic energy market Technology for a better society

22 EcoGrid EU Planned test groups PV PV EV FC Control Group Manual control user IBM/PowerMatcher Users ~700 Siemens Users ~500 Smart Businesses ~100?? Technology for a better society 22

23 Summing up v Demand response can effectively be integrated into the power market. v Full AMR-rollout will empower also the smaller customers to profit from adaptation to different market situation. v Demand response have significant value relative small decline in demand can contribute to substantial reductions in price in shortage situations. v Temporary reduction in domestic space heating and load shifting of water heaters are the most convenient demand response objects in Norway, and the accumulated potential is large. v Demand response closer to operation necessary to cope with future challenges related to high share of intermittent production as demonstrated the EcoGrid EU project on Bornholm (Denmark). v PARADOX: Success with Demand Response will reduce the price differences and thereby the potential payback for necessary investments. Ø Additional incentive mechanisms, e.g. ToD tariffs, needs to be considered in order to achieve wanted socio-economic benefits! Technology for a better society 23

24 Thank you for your attention! Technology for a better society 24