The UK Aggregation Experiment Combining Wind and Demand Response. Dr. Jacques Deuse Technical Director of EU-DEEP Project

Transcription

1 The UK Aggregation Experiment Combining Wind and Demand Response Dr. Jacques Deuse Technical Director of EU-DEEP Project

2 Develop innovative business models that will maximize the value brought by Distributed Energy Resources (DER) to the electrical system in Europe by partners from 16 countries - 30 M - 15M from EC - DG Research > mid 2009 A FP6 project coordinated by GDF SUEZ AXIOM

3 Develop innovative business models that will maximize the value brought by Distributed Energy Resources (DER) to the electrical system in Europe by partners from 16 countries - 30 M - 15M from EC - DG Research > mid 2009 A FP6 project coordinated by GDF SUEZ Demand segmentation & client flexibility modelling (market data from 7 gas/electric utilities)

4 Develop innovative business models that will maximize the value brought by Distributed Energy Resources (DER) to the electrical system in Europe by partners from 16 countries - 30 M - 15M from EC - DG Research > mid 2009 A FP6 project coordinated by GDF SUEZ Demand segmentation & client flexibility modelling (market data from 7 gas/electric utilities) Assessment of DER impacts onto the electrical system (using extensive network simulations)

5 Develop innovative business models that will maximize the value brought by Distributed Energy Resources (DER) to the electrical system in Europe by partners from 16 countries - 30 M - 15M from EC - DG Research > mid 2009 A FP6 project coordinated by GDF SUEZ Demand segmentation & client flexibility modelling (market data from 7 gas/electric utilities) Assessment of DER impacts onto the electrical system (using extensive network simulations) In-depth appraisal of 3 contrasted business cases involving the aggregation of small DER units TF1 - Demand Response Aggregation TF2 - Micro-CHP Aggregation TF3 - services on CHP and Aggregation

6 Develop innovative business models that will maximize the value brought by Distributed Energy Resources (DER) to the electrical system in Europe by partners from 16 countries - 30 M - 15M from EC - DG Research > mid 2009 A FP6 project coordinated by GDF SUEZ Demand segmentation & client flexibility modelling (market data from 7 gas/electric utilities) Full scale field tests (5 experiments involving DER units with their control systems) Assessment of DER impacts onto the electrical system (using extensive network simulations) In-depth appraisal of 3 contrasted business cases involving the aggregation of small DER units TF1 - Demand Response Aggregation TF2 - Micro-CHP Aggregation TF3 - services on CHP and Aggregation

7 Develop innovative business models that will maximize the value brought by Distributed Energy Resources (DER) to the electrical system in Europe by partners from 16 countries - 30 M - 15M from EC - DG Research > mid 2009 A FP6 project coordinated by GDF SUEZ Demand segmentation & client flexibility modelling (market data from 7 gas/electric utilities) Full scale field tests (5 experiments involving DER units with their control systems) Assessment of DER impacts onto the electrical system (using extensive network simulations) In-depth appraisal of 3 contrasted business cases involving the aggregation of small DER units TF1 - Demand Response Aggregation TF2 - Micro-CHP Aggregation TF3 - services on CHP and Aggregation Recommendations to improve regulations on distribution networks (Use of System charges)

8 Aggregation of demand flexibility Transmission System Operator Ancillary services Balanced accounts Power trading Aggregator Electricity Retailer Aggregating load & generation profiles Electricity Purchase Contracts Consumption account Electricity Sales and demand response contracts RES UNITS Small wind generators FINAL CONSUMERS Commercial and industrial consumers FLEX FLEX

9 Down to which level of power is Demand Response profitable? Simulations Tests

10 Down to which level of power is Demand Response profitable? Simulations Tests

11 4 sources of aggregation-related value OBPM RIC PFCS 8:30 9:00 10:00 10:30 10:50 Time Market Closure Final Physical Notification (FPN) Supplying period Indicative SBP and SSP are published Obtainment Best Price in Market (OBPM) before Market Closure Consumers Power supply Flexibility supply Aggregator Power trading until Gate closure Spot power market Business Plan Reduction of Imbalance Costs (RIC) after FPN Provision of Frequency Control Service (PFCS) after FPN and before start SP Consumers Consumers Power supply Flexibility supply Contracts + availability notified 1 week ahead Aggregator Aggregator SBP payment if short (wind generation lower than forecast) Imbalance costs Contract (min. size: 3MW) + availability notified 1 week ahead Triad Management (TM) in winter, before FPN Consumers Power supply Flexibility supply Aggregator Triad charge Payment based on demand during the three peak half-hours in winter

12 Experiments: a first step to business GDF SUEZ UK Head Office Wind farm 30 MW GSM/GPRS Internet Firewall Market Data Small offices Winter: 20 kw Summer: 10 kw Council complex Winter: 40 kw Summer: 150 kw Shop (trading area) Winter: 20 kw Summer: 20 kw Supermarket Winter: 40 kw Summer: 40 kw Aggregator Wind Forecasting Demand Forecasting Cold store Winter: 150 kw Summer: 250 kw Medium-size hotel Winter: 50 kw Summer: 20 kw kw Factory Winter: 900 kw Summer: 900 kw Large offices Winter: 0 kw Summer: 1500 kw Cold store Winter: 1500 kw Summer: 1500 kw

13 Small offices Winter: 20 kw Summer: 10 kw Council complex Winter: 40 kw Summer: 150 kw Cold store Winter: 150 kw Summer: 250 kw Factory Winter: 900 kw Summer: 900 kw Customer portfolio: 5 contrasted clients Shop (trading area) Winter: 20 kw Summer: 20 kw Yearly availability (hours/year) Supermarket Winter: 40 kw Summer: 40 kw Med.-size hotel Winter: 50 kw Summer: 20 kw Heating/Hot Air conditioning/ Air conditioning/ Air conditioning Cold generation water production Heating Ventilation Large offices Winter: 0 kw Summer: 1500 kw Availability (h/year) Nominal flexibility (kw) Hotel Shop Complex/Offices Large offices Cold store Nominal flexibility (kw) Cold store Winter: 1500 kw Summer: 1500 kw

14 Down to which level of power is Demand Response profitable? Simulations Tests

15 13 clusters of parameters impact the business -RES integrated in the market -Feed in tariff -Market closure close to delivery -Imbalance charges -Minimum size to offer reserves -Period from reserves contracting -Triad fees -Ratio between capacity & energy payment -Number of periods in T&D charges -Spot market prices (volatility) -SSP/SBP (volatility) -Short Term SBP forecasting -Payment level of the PFCS Market Design Grid tariffs structure Elec. market volatility Support scheme to DER BUSINESS Regulation barriers Customer's characteristics Client interaction kwh Smart metering -Hourly metering -Adjustment after gate closure -Demand + generation aggregation -Reserves offered by demand -Reserves offered through aggregation -Demand forecasting ability -Customer's load profile -Cost & quantity of flexibility -Climate conditions -Time-window availability (time frame for call acceptation) -Maximum duration of use of flex -Overriding signal from the customer -Day availability (# calls per day) -Week availability (# calls per week) -Minimum recovery period -Propensity to change -Spread bet. Spot & Flex prices - Spread bet. SBP & Flex prices - Retail price of electricity Electricity price level Financial environment IT characteristics Characteristics of renewable production -PLC & hardware -DEMS Software -Subcontracting installation costs -Subcontracting maintenance costs -Taxes -Capital market context Structure of generation mix -Wind forecast -Wind variability

16 Most of the benefits are provided by PFCS Cumulated profits (GBP/kW of nominal flex.) PFCS TM OBPM RIC Number of Half-Hourly Interruptions per customer and per year Assumption: annual interruption duration = 100 hours 30 GBP/kW of nom. flex RIC 9% OBPM 16% PFCS 45% TM 30%

17 Large differences between customers 10/06/ GBP/kW 12 GBP/kW Cumulated total benefits (GBP/kW of flex.) Profits generated by customer RIC OBPM TM PFCS 0 Hotel Shop Council offices Large offices Cold store Total cumulated revenue per customer Total cumulated profits (GBP/year) Hotel Shop Council offices Large offices Cold store

18 Sharing of profits is based on the availability payment Aggregator Consumers 30 GBP/kW Avail. Flex. What is an acceptable sharing of the benefits? Aggregator 30% Consumers 12% IRR for the aggregator (%) 25% 20% 15% 10% 5% 0% -5% Sharing: 66/34 Aggregator's IRR Cust. yearly benef. 80/20 70/30 60/40 50/50 Sharing of the profits between customer/aggregator Mean customer benefits (GBP/year) 1,250 GBP p.a.

19 A minimum size between 40 kw and 140 kw 350 Real flex. vs. min flex. for profitability real size 300 min.size Down to which level of power is Demand Response profitable? kw kw of nominal flexibility kw 50 0 Hotel Shop Council offices Large offices Cold store

20 Conclusions 4 sources of revenues are targeted Obtainment of the Best Price in Market (energy value) Reduction of the Imbalance Costs (balancing value) Provision of Frequency Control Services (additional services) Triad Management (network or infrastructure value) A business based on a strong partnership between aggregator and customers Transparent and simple interactions Contracting phase is crucial Installation is a perilous stage Simulation results show a possible business in the UK 12% IRR for the aggregator 1250 GBP of saving for the customer (0,7% of its bill) Most of the profits come from PFCS Minimum size for profitability varies from 40 to 140 kw depending on customers

21 Thank you for your attention!