Frequency Control Ancillary Services

Similar documents
High renewable energy penetrations in the Australian National Electricity Market: key challenges and opportunities

Frequency Control Ancillary Services

ANTICIPATING AND ADDRESSING SECURITY CHALLENGES IN AN EVOLVING POWER SYSTEM

TRANSFORMING AUSTRALIA S ELECTRICITY SYSTEM

WIND AND SOLAR FARMS TESTING REQUIREMENTS FOR CONTINGENCY FCAS REGISTRATION

Iain MacGill. Japan-Australia Dialogue on Energy Policy & Regulation Keio University, Tokyo 24 September 2017

AEMO STATEMENT OF ISSUES

Renewable Technologies in the Future NEM

Ancillary Service. the WEM System Management. June 2018

Executive summary. Value of Smart Power Generation for utilities in Australia. A white paper by Wärtsilä and Roam Consulting

Regional Impact of Renewables: ERCOT

Renewable Energy & Energy Efficiency Certificate Trading: the Australian Experience

Integrating High Levels of Variable Renewable Energy Sources

Achieving Resource Adequacy in the Australian National Electricity Market

PROPOSED FCAS CALCULATION CHANGES IN TASMANIA

MARKET ANCILLARY SERVICE SPECIFICATION ISSUES PAPER

Renewable Integration at ERCOT

Integration of Renewable Generation in ERCOT

Wind Energy Integration; What s the Big Deal?

Renewable Energy & Energy Efficiency Certificate Trading: the Australian Experience

2 November Project Manager Queensland Renewable Energy Expert Panel PO Box 15456, City East Queensland Online:

Renewable energy integration into the Australian National Electricity Market: Characterising the energy value of wind and solar generation

Electricity Markets & Power System Operation in Australia

Benefits and challenges of demand response in the wholesale market. Australian Institute of Energy / Young Energy Professionals Sydney, 28 April 2014

100% Renewables for Australia?

High PV penetration in Australia, Challenges and Opportunities

Preliminary findings and implications for Bio Energy. Bio Energy Australia Conference Sydney 21 November 2017

A-Lab Innovation Frame 2: The wholesale markets are designed for renewable energy Research Context

Fast Frequency Response Markets for High Renewable Energy Penetrations in the Future Australian NEM

Control Power and Variable Renewables A Glimpse at German Data

DS3: System Services Review TSO Recommendations

Chapter 3: The Scheduling & Chapter 4: The Scheduling and Dispatch Process

INTERVENTION PRICING METHODOLOGY CONSULTATION ISSUES PAPER

Electricity Market Design Principles

Possible Australian perspectives for the EU electricity market in 2025

Overview of Renewables in the ERCOT System. Julia Matevosyan Lead Planning Engineer, Resource Adequacy

FINANCING LARGE SCALE SOLAR. Large Scale Solar Conference - Sydney Gloria Chan Director, Large Scale Solar Lead April 2017

Managing Flexibility in MISO Markets

Hornsdale Wind Farm 2 FCAS trial July 2018

Investigating Power System Primary and Secondary Reserve Interaction under High Wind Power Penetration Using Frequency Response Model

Stakeholder Comments Template. Subject: SCE Comments on Dynamic Transfer Revised Final Draft 2/18/11

Flexible Ramping Products

Evolution of Operating Reserve Determination in Wind Power Integration Studies

Semi-Scheduled Generation Dispatch Self-Forecast - Assessment Procedure Consultation. December Final Determination

Wind Update. Renewable Energy Integration Lessons Learned. March 28, 2012

Reliability and the Future of the Electricity Grid: A North American Bulk Power System Perspective

Large-Scale Integration of Variable Renewable Energy: Key Issues and Emerging Trends. Jessica Katz 29 March 2018

Short term variability of utility-scale PV in the Australian National Electricity Market

Power System Security Assessment of the future National Electricity Market

Integrating renewable energy into the Australian National Electricity Market

Examining the Viability of Energy-Only Markets with High Renewable Penetrations

The Australian National Electricity Market: current status + developments

Annual Renewable Energy Constraint and Curtailment Report 2016

Primary reserve studies for high wind power penetrated systems

Modelling Transitions to Robust High-VRE Systems

Faster Acting Response. July 2018

GC022 - Frequency Response

Integrating Variable Renewable Energy into the Grid

100% Renewables for Australia?

Regulation 101 Webinar. April 25, 2017

Renewable Energy: Policy options & integration issues

100% Renewables in Australia:

FORECASTS AND KEY INFLUENCING FACTORS FOR GRID SUPPLIED ENERGY

Queensland Renewable Energy Expert Panel Issues Paper

Frequency Response. Straw Proposal

IEA Task 24 Integration of Wind and Hydropower Systems

Balancing modern Power System with large scale of wind power

Possible merit order impacts of wind in the Australian NEM

The Australian National Electricity Market

Value of Customer Reliability. EDPR Consumer Forum 17 April 2018

EcoGrid EU. Analysis of the European Framework for Balancing Power opportunities and new trends identified within the EcoGrid EU project 20/05/2013

Wind Energy in the National Electricity Market. Masterclass for the Restructured Electricity Industry August 2005 CEEM, 2005

Challenges and opportunities for integrating clean energy technologies into the Australian NEM

RENEWABLE ENERGY INTEGRATION: VARIABILITY & UNCERTAINTY IMPACTS AND MITIGATION OPTIONS BRENDAN KIRBY

Energy Market Policy & Challenges

Terms of Reference AG 2017/01

Energy Uplift (Operating Reserves)

CALIFORNIA INDEPENDENT SYSTEM OPERATOR ANCILLARY SERVICES REQUIREMENTS PROTOCOL

Integration of variable renewable energy in power grid and industry Cédric Philibert, Renewable Energy Division, International Energy Agency

Controlling Wind Turbines for Ancillary Services: An Analysis of Capabilities and Trade-offs Jacob Aho Andrew Buckspan Lucy Y.

Integrated Grid Planning Symposium

Review of Load Following Ancillary Service Quantity Requirements

Highlights and Key Results

Assessment of Load Shed Service for Import (LSSi) Product

OPEN ENERGY NETWORKS. A Joint AEMO and Energy Networks Australia Initiative

Mr Craig Price Group Manager, Planning Australian Energy Market Operator GPO Box 2008 Melbourne VIC 3001

MISO ELMP. Goals & Experience. Jeff Bladen Executive Director, Market Development

Southern California Edison Approach to Renewable Integration June 7, 2011

Revised Draft Final Proposal for Participation of Non-Generator Resources in California ISO Ancillary Services Markets

TSO Recommendation System Services. 26 th June 2013

Tilt Renewables presentation for Infratil Investor Day. 11 April 2018

POWER-SYSTEM-WIDE ANALYSIS OF THE BENEFITS OF RESERVE PROVISION FROM SOLAR PHOTOVOLTAICS IN SOUTH AFRICA

Integrating High Penetrations of Variable Renewable Generation Lori Bird and Debra Lew, NREL NCSL Webinar March 28, 2012

State of the Ar t. May Utility Wind Integration Group. American Public Power Association. Edison Electric Institute

New Role of Coal in the Future Energy Mix. Greg Everett 23 June 2017

Energy Economics and. School of Economics, The University of Queensland

The Role of Wind and Solar PV in Mitigating the Impact of Uncertainty in the Australian Electricity Industry

National Energy Guarantee Draft Detailed Design Consultation Paper. Engineers Australia Submission

Chapter 2: Inputs. Chapter 3: Inputs

Demand Response Availability Data Systems Definitions

Transcription:

Frequency Control Ancillary Services Is Australia a model market for renewable integration? Dr Jenny Riesz Wind Integration Workshop 24 th October 2013

FCAS reserves Frequency Control Ancillary Services (FCAS) Reserves that maintain exact match between supply and demand for electricity at all times. Type of event Contingency Response time Primary Secondary Very fast Fast Frequency Reserves Event Tertiary Primary Slow Regulation Secondary Non-event Tertiary

Impacts of wind on FCAS FCAS incorporates much of the system integration costs & challenges of wind Increases variability of net demand Displaces synchronous plant Increases requirement for regulation reserves Reduces system inertia and automatic governor response May need to adjust contingency services to more precisely procure required services Effective market design can minimise the FCAS reserves required (eg. 5 min markets with short delays from gate closure to dispatch) 3

Australian National Electricity Market SA 35 GW QLD NSW National Electricity Market (NEM) VIC TAS 4

Average FCAS costs 2001 2002 2003 2004 2005 2006 FCAS market experience in the NEM Competitive spot market for FCAS introduced Regulation requirement reduced from 250 MW to 130 MW 1/3 1/3 New Zealand Electricity Commission, Frequency Regulation Market Development, Appendix E: Preliminary Cost-Benefit Assessments 5

Unique aspects of FCAS in the NEM Primary frequency response market Fast primary frequency response market requiring full response within six seconds Dynamic reserve setting Fully dynamic determination of regulation reserves based upon real-time measurement of time error Causer pays payment recovery Sophisticated causer pays mechanism for recovery of regulation payments 6

Primary Frequency Response Market Fast 6 second response time 7

Primary frequency response Autonomous response triggered by frequency drop Very rapid response following contingency (deployed in first 5-10 seconds) Very few markets have an explicit market for a service this fast Market Fully activated within Notes USA - Not explicitly included in any USA market Europe 30 seconds Start within a few seconds, at least 50% deployed within 15 seconds (ENTSO-E requirement) New Zealand 1 second Sustained for 60 seconds Australian NEM 6 seconds Sustained for 60 seconds 8

Contingency Reserves Response Times 6 seconds 60 seconds 5 minutes 9

FCAS in the NEM FCAS (8 markets) Regulation Contingency Raise Lower 6 second (R/L) 60 second (R/L) 5 minute (R/L) AGC AGC Governor Governor Rapid Gen AGC: Automatic Generation Control signal from AEMO Generator responds to locally sensed frequency CIGRE Technical Brochure 435 Ancillary Services : an overview of international practices. Oct 2010.

Dynamic reserve setting Regulation Reserve 11

Static regulation reserve requirements NREL, E. Ela et al, 2011, Effective Ancillary Services market Designs on High Wind Power Penetration Systems

Dynamic regulation reserve Wind turbine power curve highest variability in the central region Wind likely to be most variable when operating in the central range Set reserves dynamically to reduce costs NREL, Enernex Corporation, Eastern Wind Integration and Transmission Study, 2011

Regulation reserve setting in the NEM Set dynamically by the time error Accumulated deviation of frequency over time from 50Hz Will schedule more reserves if frequency deviates a lot, or for a long time Default: 130 MW raise 120 MW lower Time error exceeds ±1.5 seconds? Add 60 MW regulation per 1 second deviation Upper limit 250 MW Only carry required reserves, automatically adjusts to wind variability, demand variability, inertia, etc

Causer Pays Payment Recovery Regulation Reserve 15

Cost recovery In most systems all FCAS costs are allocated to loads Removes price signals for market participants to manage variability and uncertainty they add to the system Page 16

NEM Payment for FCAS: Contingency Raise Need is caused by generators Pro-rata by energy generated in that trading interval Contingency Lower Need is caused by loads Pro-rata by energy consumption in that trading interval Regulation Paid for by loads/generators whose variability contributes to system frequency deviations Paid for by: Generators Loads Causer Pays

Causer Pays Attribution of regulation costs: Contribution factors: Deviation from expected dispatch Positive Assisting in correcting system frequency Negative Causing deviations in system frequency Calculate contribution factors for each load/generator every 4 seconds Generators/Loads with negative contribution factors pay relative proportion of FCAS cost (aggregated over 1 month) Aggregated by portfolio (beneficial operation of one unit can correct for deviations in another)

Benefits of causer pays methodology More cost reflective signals To wind farms (and other generators) Incentives to manage variability & uncertainty Select less variable sites or technologies? Self-imposed occasional curtailment to limit unanticipated ramps? More economically efficient outcomes Stronger incentives to reduce variability when regulation is expensive Technology neutral Eg. Biomass and landfill gas observed to be significant contributors to variability, pay their share of regulation costs Variable loads pay more 19

Other beneficial aspects of the NEM Technology neutral approach to provision of FCAS No barriers to provision by renewables, as long as they meet the technical requirements Single platform market No day-ahead market (real-time only) FCAS reserves set dynamically in real time, based upon latest information 20

Adjustments that may be required in the NEM Optimise contingency response times Revise 6s, 60s, 5min response times to new technology capabilities? Inertia Market for inertia? Very fast FCAS service? Following service Slower regulation service? Ramping constraints causing out-ofmerit dispatch 21

Can the NEM provide an effective model for other FCAS markets? Primary frequency response market Dynamic reserve setting Causer pays payment recovery 22

Thank you www.ceem.unsw.edu.au 23