The role of Demand Response in 2030

Transcription

1 The role of Demand Response in 2030 REstore London Antwerp Paris 1

2 A clearer and more usefull definition of Demand Response (DR) DR is to the electricity sector what airbnb is to the hotel sector: Hilton, Sheraton are the equivalent of RWE, EDF, EON Airbnb is the equivalent of a DR aggregator: airbnb offers private rooms for short-term rent while a DR aggregator offers the flexibility of private assets such as production processes, thermic units, car and house batteries, CHPs to the system Both use the latest software and communication tools to make this possible and as (or more) convenient then the traditional centralized model A DR aggregator offers an efficient platform to forecast, monitor & control existing distributed load and production assets to capture their available flexibility and offer it to the market at the required technical quality and competitive price

3 Take the example of a paper factory: these factors typically consume between MW, the equivalent of a large town

4 Take the example of a paper factory: the first sub-process is the pulp production process (1/2) Industrial process #1: Making pulp from wood (chips)

5 Take the example of a paper factory: the second sub-process is the paper production process (2/2) Industrial process #1: Making pulp from wood (chips) Industrial process #2: making paper from pulp

6 The driver of flexibility is the buffer between the two processes: if the level of pulp is sufficient in the pulp silos, power of pulp grinders can be curtailed (10s of MW)!

7 To model this buffer one can use the factory sensor data, in this case the level of pulp in the silos (in tons, cubic meter, meter, %, ). Level of silo

8 Capturing and analyzing factory sensor data in real-time allows to change power consumption in a non-intrusive way, so to better match the available power on the grid ⅔ Τ Δ ¾ ⅝ ⅕ + e

9 The chalenge yesterday, today and tommorow Being able to match load and production every single hour of the year: Having the ability to match in all circumstances= security of supply At a competitive price In a sustainable way The challenge is to meet all 3 objectives simultaneously

10 Impact of intermittent renewable energy sources The residual energy volume to be provided is reduced significantly But peak-load remains nearly unchanged as there will always be hours/days without wind & sun The running hours & Load factor for the remaining power plants are significantly reduced but the required capacity remains unchanged. New problem to solve

11 Interconnections: Required but not sufficient à A copperplate is not realistic due amongst others to NYMBY à Energy import cannot be guaranteed for every hour of the year (congestion, lack of production ) à Energy export (of sustainable and cheap energy) suffers the same limitations à Whatever is done there will remain the need for local capacity preferably economic and sustainable

12 How can the residual load be met in a sustainable way? Dedicated resources become very expensive when only needed a few hours a day But they are ideally suited to deliver capacity for many hours, the longer the better Dedicated sustainable resources such as pumped-storage, biomass, utility scale batteries are ideally suited to deliver the remaining base-load capacity, i.e. little capacity but large energy volumes

13 How can the residual load be met in a sustainable way? DR is about secondary asset use, using existing assets with a specific primary function to deliver extra value to the electricity market, exactly as private rooms for travel It is ideally suited to deliver large amounts of capacity for a limited time at a very competitive price Uses of electricity with buffers (cold stores, pumps, HVAC), CHPs, car and/or house batteries

14 Conclusions DR is an efficient, reliable and economic solution that can contribute significantly to the objectives of security of supply, competitivity and sustainability in the years to come What we need is: a market model that allows the fair competition between dedicated resources and DR The split between dedicated and non-dedicated resources needs to be determined by their respective economic & technical merits, not by market design DR is the right structural answer to the challenges we face The potential of DR for the years to come will depend on The opportunities that become available to DR in the balancing and adequacy markets The de-carbonization of the transport & heat sectors