active demand Active Demand: main results, lessons learnt and recommendations from the ADDRESS European project Régine Belhomme, EDF SA

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1 Active Demand: main results, lessons learnt and recommendations from the ADDRESS European project Régine Belhomme, EDF SA IRED Conference, November 19, 2014 Kyoto, Japan active demand The research leading to these results has received funding from the European Community's Seventh Framework Programme (FP7/ ) under grant agreement n

2 ADDRESS Project in short ADDRESS (Active Distribution network with full integration of Demand and distributed energy RESourceS): 5-year large-scale Integrating Project of the EU 7th Framework Programme June 2008 May 2013 Target of the project: Active Demand (AD): active participation of domestic and small commercial consumers in the electricity markets and the provision of services to the different participants 25 partners, 11 European countries Coordinator: Enel Distribution Technical Manager : EDF 2

3 Objectives 1. Enable Active Demand: Innovative technological prototypes at consumers premises and at power level 2. Exploit the benefits of Active Demand: Potential benefits for the stakeholders Identify the barriers to AD deployment and propose recommendations Functional processes, markets mechanisms, contractual schemes, 3. acceptance: Sociological studies and accompanying measures 4. Validation of the solutions: 3 tests sites in Italy, Spain and France 5. Dissemination : Dedicated activities for the different stakeholders 3

4 Players or functions of the electricity A complete chain of innovative solutions Archetypes or functions of electricity players! NB: smart plugs to control classical appliances: washing, dish washers, deep freezers, etc. 4

5 Players or functions of the electricity A complete chain of innovative solutions Archetypes or functions of electricity players! Provide demand flexibility on a voluntary and contractual basis Households and small businesses connected to LV network Price-volume signals sent the day ahead or intraday Optimisation & control of appliances and DER Takes into account consumers preferences (savings, comfort, ) Consumer centric approach NB: smart plugs to control classical appliances: washing, dish washers, deep freezers, etc. 5

6 Players or functions of the electricity A complete chain of innovative solutions Archetypes or functions of electricity players! function or entity NB: smart plugs to control classical appliances: washing, dish washers, deep freezers, etc. Gathers the consumers flexibility to form AD products; Offers/sells the products to electricity players via markets and contracts 6

7 Players or functions of the electricity A complete chain of innovative solutions Archetypes or functions of electricity players! Markets, contracts,...: Any types of relationships Organized markets Call for tenders Bilateral contracts Etc. NB: smart plugs to control classical appliances: washing, dish washers, deep freezers, etc. 7

8 Players or functions of the electricity A complete chain of innovative solutions Archetypes or functions of electricity players! ity players: Regulated: s and s Deregulated: s: centralized, DG, RES, etc. Intermediaries: retailers, BRPs, traders, DG aggregators, etc. Large NB: smart plugs to control classical appliances: washing, dish washers, deep freezers, etc. 8

9 Active Demand services 31 services identified and studied (not exhaustive) 7 for regulated players (, ) Voltage regulation and power flow control Tertiary active power reserve for balancing generation and consumption Smart load reduction to avoid blind load-shedding 24 deregulated players Optimisation of purchases and/or sales of electricity of generation or consumption (to reduce imbalance costs) Optimisation of generation investments costs Optimisation of generation management Reserve capacity to minimise risks (price-volume) Tertiary reserve to fulfil obligations wrt 9

10 Active Demand products 3 standardised products compatible with evolution of markets and smart grids similar to products provided by generation Power Negotiation gate closure Re-profiling activation time (CRP only) Re-profiling volume Price information Re-profiling duration time Re-profiling availability interval (CRP only) Energy payback SRP: Scheduled re-profiling CRP: Conditional re-profiling CRP-2: Bidirectional CRP Obligation to provide a specified demand modification (reduction or increase) at a given time for a given duration. Must have the capacity to provide a specified demand modification (reduction or increase) during a given period. Delivery called upon by buyer (similar to reserve service) Same as CRP but demand modification in a bi-directional range [ -y, x ] MW, including both increase and decrease. 10

11 Dedicated and software tools for and network operation Ensure secure and efficient network operation with AD in place Technical validation of AD programs technical aggregation Exploit AD services for network operation local optimisation Definition of load areas for service localization and technical validation «Load areas» : network area with consumers having a similar impact on network operational constraints (voltage, congestion ) Publication of flexibility margins per load area Flexibility tables Definition of upper and lower allowed flexibility limits per load area Guidelines for players to facilitate definition of AD products Only indicative No commitment for Technical validation Limit ( curtail ) AD programs volume in case of constraint violation: fair «rules» Two timeframes: day ahead validation (D-1) and intraday validation 11

12 Players or functions of the electricity Players or functions of the electricity Field tests Houat et Hoëdic Castellón Carpinone 12

13 Players or functions of the electricity Players or functions of the electricity Field tests Houat et Hoëdic Italy - Upstream part of ADDRESS chain with focus on tools and grid operation emulated by DG and storage 10 MV feeders, 156 MV/LV substations Castellón Carpinone 13

14 Players or functions of the electricity Players or functions of the electricity Field tests Houat et Hoëdic Spain - Downstream part of ADDRESS chain : from aggregation to appliances Simplified representation Simulated requests sent to aggregation 300 consumers involved Castellón Carpinone 14

15 Players or functions of the electricity Players or functions of the electricity Field tests Houat et Hoëdic France - the whole ADDRESS chain : from AD products buyers to controllable appliances Simulated market interaction, provision of AD services to electricity players Assessment of tools 30 consumers involved 1 MV feeder, 8 MV/LV substations, 1 PV power plant Castellón Carpinone 15

16 ADDRESS chain technically validated! Reduction of morning peak load from 7:45 to 8:45 (cold day in March 2013) Heure Heure Shifting electricity consumption to time period 11:00-12:00 when PV generation forecast is maximum (May 2013) The whole ADDRESS chain has been tested and validated Provision of services by AD to both regulated and deregulated players is technically feasible However A lot of issues and difficulties were met and solved for a large part Improvements needed before a possible deployment, in particular in terms of Communication (e.g. between aggregation and ox, between ox and controlled appliances) Integration of the different components of the ADDRESS chain Robustness of algorithms and equipment 16

17 Sociological studies Motivation of the participants Experience of participants during the field tests Future adoption of Active Demand and ADDRESS-style technology France : islands of Houat and Hoëdic Spain 17

18 Economic studies : potential gross benefits Potential benefits for electricity Reduced costs for generation and networks Belgium, Germany, Spain, Italy Between 6 and 48 Euros per consumer per year Potential benefits for services on the market 4 different services for the retailer, the BRP, the and the. Spain, Italy, Finland, Belgium Between 4 and 9 Euros per consumer per year Potential benefits for specific applications, e.g. reserve or capacity-related services (in particular for deferring/avoiding network costs) Spain, Belgium, Italy, UK Between 10 and 240 Euros per consumer per year... 18

19 Key factors... Keywords (1/3) Friendliness and simplicity of ox, smart plugs, smart appliances, etc. for consumer / installer/ assistance Information and training Usability of technologies for the consumers Data privacy and clear, transparent and understandable contracts Override capability and information on electricity consumption Equipment and technologies Robustness and reliability of HW and SW of communication Standardization and interoperability Different pieces of equipment from different manufacturers Standardized interfaces and infrastructures Available, open and proven standards Limit the costs 19

20 Key factors... Keywords (2/3) and market Target the most beneficial applications Economic attractiveness may be case-specific Identify potentially profitable situations, adapt to their specificities Adaptation of existing markets Only minor changes needed (e.g. minimum size) Before introducing new markets like local services markets which seems very (too?) complex at present time Standardization of AD products To facilitate their trading on the markets Baseline Crucial to assess consumer response & performance of AD service provision Difficult issue not completely solved yet Rules and clear mechanisms : rights and duties of deregulated players In particular balancing responsibilities 20

21 Key technical factors... Keywords (3/3) System security Energy payback Issues identified more R&D work and development needed Appropriate coordination between and With their own roles, needs and constraints AD reliability SOs are in charge of real-time balancing need to achieve a sufficient level of reliability of the AD products/services Consideration of emergency situations and (future) processes put in place to ensure security Will set a framework for AD Impact on technical validation and localization of AD products Flexibility and adaptability of the chain Adapt to regional/local conditions: types of appliances, market and tariff structures, grid features, consumption behavior, parameter tuning and strategies to control appliances, Partial and progressive implementation to face barriers and follow the evolutions: regulation, technologies (e.g. smart appliances) A set of bricks to assemble one after the other to build the ADDRESS chain 21

22 Thank you! active demand The research leading to these results has received funding from the European Community's Seventh Framework Programme (FP7/ ) under grant agreement n