Overview of current services from DSR and future challenges

Transcription

1 Overview of current services from DSR and future challenges Febeliec, 15/6/2015 Hans Vandenbroucke

2 DR potential and realized efforts Source: 2

3 A changing context DSR products Energy system is changing rapidly and need for flexibility is urging! New players active in the market facilitating DSR: aggregators Suppliers offering price and/or volume flex to their larger customers (dynamic supply contracts) ELIA addresses this need by conceiving specific products in close cooperation with stakeholders (RES, generators, consumers, DSOs, regulators and aggregators) Demand Side Response and Demand Side Management are important tools for ELIA & DSOs in managing the system security (residual balancing & congestion) for BRPs in self-balancing. Source: EG3 REPORT SMART GRID TASK FORCE With development of flexibility, existing market models and processes are impacted! 3

4 Overview current load Product Type Correction Sourcing Payment Availability Provider R1 load (FCR) linear decrease of offtake when the frequency is between 49,9-49,8Hz NO Monthly Reservation price, no activation remuneration 100% qh availaibility + continuously automatic activation large Industrial TSO grid users (via aggregator) ICH (mfrr) DROP TO Target is fixed = Shedding Limit YES, using Nomination Yearly Reservation price + activation remuneration 100% avg availability large Industrial TSO grid users (via aggregator) R3DP (mfrr) DROP BY Target is variable = Baseline fixed capacity (deltap) NO (last qh as reference value) Yearly Reservation price, no activation remuneration 100% qh Availability industrial T/DSO grid users and/or emergency generators (via aggregator) SDR DROP DROP BY YES, using Nomination NO Yearly Reservation price + activation remuneration Remuneration based on available capacity (No obligation to consume no penalty when available capacity is <Rref industrial TSO grid users (via aggregator) industrial DSO grid users (via aggregator) 4

5 Overview current load (2) Product Activation parameters Activation Price Volume 2015 Avg Reservation Price in 2015 R1 load ICH half of the reserve must be deployed within 15 max reaction time for complete activation: 30 must be able to be activated minimum 15 within 3 max duration hours max # : /year minimum 24hours between activations NO YES Avg 23MW Total R1: 83MW 27MW in MW Total R3: 661MW Idem in ,85 /MW per h In 2014: 5-6 /MW per h MW /MW per h jan/ ,6 feb/ ,8 mar/ ,93 apr/ ,17 may/ ,79 1,41 /MW per h Idem in 2014 R3DP within 15 max duration 2 hours max # : 40 /year minimum 12hours between activations prequalification process NO 60MW Total R3: 661MW 50MW in ,07 /MW per h 3,38 /MW per h in 2014 SDR YES SDR : ~100MW NA 5

6 Determination mfrr (R3) portfolio in 2016 The different product characteristics are taken into account when defining the constraints R3 portfolio. R3 Production is available 100% of time and will be used (in combination with R2) to cover imbalances, especially forced outages of units (loss of max ~440MW) R3 DP will be used in addition to R3 Prod and R2 to cover most of imbalances due to outages but also forecasting errors of renewables and load. ICH will be mainly used to cover imbalances resulting from outages of nuclear units Inter-TSO will be used as last resort activation in exceptional cases only All products will be in competition respecting the following constraints: Min 300MW R3 Production Min 470MW R3 Production + R3 DP (corresponding to max 300MW ICH) The proposed limits for R3 products allow Elia to ensure a secure operation of the network. 6

7 R3 2016: yearly & monthly auctions As European trends is to move towards short term sourcing and this could increase liquidity in the balancing market, the goal is to move to short term sourcing for balancing products in the next years. After consultation of the market, Elia will start with partial monthly sourcing in 2016: Volumes contracted in the yearly tendering = 700MW Minimum 300MW R3 Prod Minimum 400MW R3 Prod + R3DP Volumes contracted in the monthly tendering = 70MW Full competition between R3 Production and R3 Dynamic Profile 7

8 Evolutions for 2016 : R3DP & ICH R3DP - Capping (100MW) removed - Cap # providers/volume removed - Submetering (TSO and DSO Delivery Points) ICH: - Workshop planned on 24/6 - Binding Bidding Obligations as part of ICH-Contract - Binding Bidding Obligations as part of General Framework Agreement 8

9 Evolutions for SDR Eligibility - SDR: introduction of 3 new segments : SDR DSO: access points to the distribution grid SDR Submetering : delivery point within the installations of GU connected to ELIA grid SDR CDS: delivery point within a CDS connected to ELIA grid Evolution of Certification process for SDR in order to better valorize flexibility: Elia calculates the maximum power that can be contracted (Rref, and not anymore the candidate) Valorization of usefull consumption even when lower than Rref Minimum Availability rate reduced from 85% to 80% Product design Choice among DROP TO and DROP BY (for SDR DSO only DROP BY) No correction of BRPs perimeter for 3 new segments Baseline methodology developed in order to verify the activation of SDR for 3 new segments (for SDR TSO baseline = Nomination ) Additional limit on the #hours of activations : max 60h per sliding window of 30 days Tender Design: Selection of offers Total Cost (based on reservation & activation prices) will differ depending on final decision on volumes( 30/6) o 20 activations/130 hours if volume 1500MW o 4 activations/13 hours if volume <1500MW 9

10 Challenges ahead Evolution to short term sourcing of reserve products How to develop effective DSR participation while preserving an efficient market? What are the criteria to participate in the wholesale energy market and what are the implications for the BRP concept as a whole? Throughout Europe different market models for DSR participation have emerged, acknowledging the variety in prevailing market design both in retail and wholesale markets. However, there is a clear demand from stakeholders to provide a stable enduring market model. There is a push by European and national policy makers towards a market model facilitating DSR-participation. Elia has already contributed to include direct DSR-participation in its product portfolio by developing specific products. This has led to a specific product design build on a consensus with market actors, including CREG. 10

11 Challenges ahead (2) Network Code on Balancing Focus on participation of load via Standard Products but ICH/R3DP is not a standard product given limited # activations and avg availability (ICH) Qualification as a specific product? Strict criteria applicable: 1. only possible for flex that cannot partake to balancing market via normal standard products 2. CREG needs to assess this on a yearly basis 3. European reporting to regulatory authorities every 2 years on the costs and benefits, and the possible inefficiencies and distortions of having Specific Products in terms of competition and market fragmentation 4. By default all specific reserve products should be shared on a Common Merit Order (and hence can be activated by other TSOs if their activation price is cheaper than other bids) unless other TSOs of the CoBA agree that these bids can be set a s unavailable for activation by other TSOs = unshared bids. Standardization/simplification of ELIA product portfolio 11

12 Many thanks for your attention! Hans Vandenbroucke ELIA SYSTEM OPERATOR Boulevard de l'empereur Brussels info@ elia.be An Elia Group company Brussels, 15/6/2015