The (future) role of the European DSOs - What can we expect? A German perspective

Transcription

1 The (future) role of the European DSOs - What can we expect? A German perspective Energi Norge Workshop The role of the DSOs Dr. Jens Büchner Oslo, 6 th June 2018

2 E-Bridge Competence in Energy Your partner from strategy to implementation Regulation Markets Market Design Concepts Pricing and Incentive Systems Auctions Business Cases Operational and strategic Regulation Management Incentive Regulation Network Tariffs, Levies and Charges Concessions DSOs Corporate Strategy Network operation and Digitization Asset Management and Investments Project and Program Management Interim Management TSOs Corporate Strategy Asset Management Market Operation System Operation Processes / IT Project Management Head of International Multi-Client Projects Stakeholder Management (NRAs, ACER, EC) Conflict Mediation and Resolution Cost and Budget Management Risk Management Generation and Supply Corporate Strategy Concepts Business models 2

3 Agenda DSOs in Germany and current industry trends Coordinated use of flexibilities for DSOs and TSOs The new and expanded roles of DSOs 3

4 Number of DSOs in Germany network tariffs (household) in Germany 2016 Distribution systems in Germany 888 DSOs in Germany operate more than km on low voltage level (0,4 kv) and km on medium voltage level (10-20 kv). Networks on high voltage level (110 kv) with an overall length of km are also assigned to the distribution system in Germany. More than 49 million customers (46 million residential and 3 million industrial and commercial customers) are connected to these distribution systems. The sum of network tariffs in distribution networks is more than 25 bn. EUR per year < 100 km 100 km km km km > km Length of power lines per DSO Household customers (3.500kWh/year) below 5 ct/kwh 5 to < 6 ct/kwh 6 to < 7 ct/kwh 7 to < 8 ct/kwh 8 to < 9 ct/kwh 9 to < 10 ct/kwh More than 10 ct/kwh 4

5 Aollocation of solar power in Germany Aollocation of wind power in Germany Voltage level of RES connection were successful in integrating more than 100 GW of installed capacities in renewable energy sources (RES) until A share of 96 % of RES in Germany ( 100 GW) are connected in distribution systems - 42 % on medium voltage level (42 GW). RE systems are unequally distributed in Germany and among the DSOs GW EHV 4% 1% EHV/HV 25% LV HV 20% MV/LV 1% HV/MV 7% MV 42% 5

6 Installed Capacity at E.DIS network [GW] 5 % of the DSO have installed generation capacities larger than peak demand Example: E.DIS 2,7 2,9 3 2,1 2,2 2,4 Peak Load: 2,3 GW 1,3 0,8 7 0,2 6,4 5,9 4,4 4,7 4,8 3,8 3,2 3,3 3,4 1,8 2 2,3 2,6 2,7 2,8 1,3 0 0,5 0,9 0 0,1 0,2 0,2 0,2 0,2 0,3 0,3 0,4 0,4 0,4 0,5 0,5 0,5 0,5 0,6 0,6 0,

7 Number of congestion management measures of E.DIS The fast growth of the installed RES capacity required the introduction of EinsMan: an emergency measure to resolve network congestions 1134 HV MV EinsMan is considered a measure of last resort, as RES have a priority access right More than 3,7 TWh of RES curtailed in

8 CO 2 -Emissions in the power, heat, mobility sectors in Germany [million t] Current trends - ambitious political decarbonization targets combined with major social and technological trends - will further accelerate the changes Decarbonization + Digitalization Electrification Communalization and autarky New pattern of mobility Changes in the way of working Battery Systems Local generation (esp. Solar) Demographic change Urbanization Individualization % % % % % power % 66 heat -90 % mobility %

9 A further increase of PV and wind power coincides with an increasing number of flexible consumption PV Systems: Performance in the region Germany [GW] Wind Power Plants: Output in the region Germany [GW] Forecast year Forecast year Transport Sector: Number of e-cars in Germany (million) Power2Heat: Number of heat pumps in Germany (million) Power-to-Heat Source: E-Bridge Study Data Base Forecast year Forecast year 9

10 Agenda DSOs in Germany and current industry trends Coordinated use of flexibilities for DSOs and TSOs The new and expanded roles of DSOs 10

11 The flexibilities in the DSO network are utilized by different parties an intelligent coordination mechanism is required Large-scale generators replaced by small-scale distributed generation. Decentralized generation in the DSO networks together with distributed load and storage facilities are the source as flexibilities to the entire system. These facilities are needed for different purposes by different parties. Access to these flexibilities need to be coordinated to ensure a safe and secure operation of the network and the system. A technically reliable and economically efficient access to the flexibilities must be guaranteed by any new coordination mechanism. Distribution Network Congestion management Voltage control Restoration of supply Restoration of supply System Load- Frequency- Control Flexibility Trade Balance management Congestion management Voltage control Market Transmission Network 11

12 Costs annuity Congestion management becomes a continuous task of DSOs The conventional network expansion planning process, aiming at covering the simultaneous peak demand, results in investments that cannot be implemented on time, that lead to high costs and that are socially not accepted. By using flexible consumption, generation or storage facilities, investments can approximately cut to half, total costs can be reduced and acceptance can be increased. 100 % ø -25 % ø -20 % Costs of flex utilization Investment costs network expansion Complete grid expansion ("copper plate") Network Network expansion expansion and and use use of of Network Network expansion expansion and use and of use of network-compatible flexibilities (load) 1 network-compatible flexibilities (infeed) 2 1 E-Bridge (2017): Sichere und effiziente Koordinierung von Flexibilitäten im Verteilnetz (BDEW PG DSO 2.0) 2 BMWi (2014): Moderne Verteilernetze für Deutschland 12

13 Future required instruments Instruments according to today's regulatory framework Today, the German DSO has no tools available for the cost-efficient management of congestions Pre-schedule phase Schedule-based phase Real-time phase TSO Limiting transmission capacities for interconnectors 1 Switching measures in own network 2 Redispatch, including network reserve 2 Switching in own network 2 Switching in own network2 Curtailment of loads (AbLaV) 2 Einspeisemanagement 3 Protection DSO Switching in own network 2 Switching in own network 2 Congestion management 2.0 Switching in own network 2 Einspeisemanagement 3 Protection 1 Smart Protection 2 Market-based congestion management (e.g., flexibility market) 3 Modern network tariff structure 1 D-2 Congestion forecast 2 13 (1), EnWG 3 13 (2), EnWG 13

14 Smart protection" prevents critical overloads and thus enhances the capacity of distribution grids Status quo Metering: Congestion forecast: Active congestion management measurement: Overload persists until protection is released Consequences: 1. Disconnection of network customers, usually beyond of what is required 2. Load curtailment without any economic considerations 3. Unsatisfied customers and damage of the DSOs image 4. Faster aging of equipment without any economic evaluation 5. Long process of re-connection: Technicians need to be on-site Overload of network elements Smart protection Objective: Selective automated load and generation curtailment process in the real-time phase. This may limit the economic and social damage of a disconnection. Procedure: Metering of demand and voltages. In case of an overload, flexible demand will be curtailed step-wise. Minimal impact for the customers. Customers may not even realize the overload situation at all. Flexibility ICT 14

15 The "market-based congestion management" is required to make maximum use of decentralized flexibilities during the planning phase Today's redispatch process Few large conventional generation units Schedule-based process with individual power plants (> 10 MW) for a small number of known congestions Limited coordination with other network operators Regulated remuneration Balancing responsibility by TSOs 1. Larger number of flexibility providers 2. Flexibility predominantly in the distribution network 3. Higher coordination effort Market-based congestion management in the distribution network Many small and medium-sized generating plants, consumers and storage Amended schedule-based process to provide the basis for local delivery Coordination with neighboring network operators and market participants Market-based remuneration, provided that sufficient competition is ensured Balancing responsibility by network operators or flexibility providers Coordination via flexibility markets with a high degree of automation 15

16 Differences in terms of design details Many similarities At present, flexibility markets are being developed in various initiatives. The main parameters are similar. All flexibility markets have the same focus, same main product definition and trading period. Flex-Router (BDEW PG DSO 2.0) ENKO (SINTEG NEW 4.0) ENERA (SINTEG ENERA) Nodes (Agder Energi / Nordpool) WindNODE (SINTEG WindNODE) Focus Product definition Trading period Congestion management Deviation from schedule (Ø power per 15 minutes) Intra-day time frame Geographic resolution Connection point Congestion area Congestion area Connection point/ Congestion area Plant Market pricing pay as bid pay as cleared pay as cleared pay as bid pay as bid Considered network levels (EHV), HV, MV HV, MV, LV EHV, HV, MV (EHV), HV, MV, NV EHV, HV 16

17 Agenda DSOs in Germany and current industry trends Coordinated use of flexibilities for DSOs and TSOs The new and expanded roles of DSOs 17

18 Pre-condition for a successful energy transition is a high degree of digitalization and automatization in distribution networks but there is still a long way to go New and expanded tasks of DSO lead to a new role Congestion management with decentralized flexibility of solar power, batteries, electric heat pumps, E-mobility etc. Black-start and island operation of distribution systems Coordination of alternative flexibility use cases (e.g. TSO) ( flexibility markets ) New business models at the interface between market and network The new role DSO 2.0 requires a high degree of automatization and digitalization, e.g. a wide-ranging state estimation of the network, especially on low voltage level - this is far away from todays reality. The smart meter roll-out in Germany is planned to be completed in 2032 and has not yet begun. The regulatory framework in Germany does not reward efficiency and digitalization. If no other drivers push digitalization, there is the risk that the necessary actions may be postponed and continuation of the Energiewende may be endangered. 18

19 Current situation of distribution systems in Germany in a nutshell. The DSOs in Germany, showing a great variety in size, RES penetration, network tariffs and know-how, successfully integrated more than 100 GW of RES (peak load in Germany: 80 GW) into the energy system. The second wave of the energy transition - with further RES expansion and an electrification of the heating and mobility sectors - will lead to increased challenges for DSO with a further growth of the investments needs. Network planning rules have already been modified with the introduction of EinsMan. Further amendments of the planning and operation rules will be required: i.e. Smart Protection and Market-based Congestion Management. DSOs will have to play a more complex and active role in the operation of the electricity networks and the system. They must make maximum use of automatization and digitalization in order to fulfill the increased coordination requirements. 19

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