2008-09-24FENIXforSOLID-DERelectricity networks’
electricity networks’
European Commission Community Research
Findings and recommendations on LSVPP
FFlexible EElectricity NNetworks to IIntegrate the eXXpected ‘energy evolution’
feni x VPP = FENIX solution to DER integration
• Overall aim : Integrate DER cost effectively in the operation and development of electricity networks
Integration = solving system (network) problems with DER
• FENIX approach : Virtual Power Plant (VPP) as key delivery mechanism for integration of DER and demand response
• Overall aim : Integrate DER cost effectively in the operation and development of electricity networks
Integration = solving system (network) problems with DER
• FENIX approach : Virtual Power Plant (VPP) as key delivery mechanism for integration of DER and demand response
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• FENIX is an European collaborative project, partly funded by the European Commission within the 6th Framework Program for Research
• Launched in October 2005 and its duration is 4 years • 20 partners are involved • The total budget is 14,7 MEuro
• FENIX is an European collaborative project, partly funded by the European Commission within the 6th Framework Program for Research
• Launched in October 2005October 2005 and its duration is 4 years • 20 partners are involved • The total budget is 14,7 MEuro14,7 MEuro
FENIX Project coordinates
feni xFENIX partners
2 TSO 3 DSO 4 Manufacturers 3 ICT specialists 7 R&D centers &
Universities 1 Business
feni xFENIX Challenges
• Identify potential present (and future) contributio n of DER to networks that can be performed at advantageous cost .
• Identify network needs and the way to satisfy them using DER • Revise regulations, incentive mechanisms and contra ctual
relationships between the different participants (D ER, aggregators, network operators and markets), to enh ance DER contribution to the network with a fair economic re turn
• Investigate aggregation (VPP) so the limited size o f DER and their non-deterministic behaviour limitations can b e overcome
• Develop the ICT architecture to make it work: - At DER level: FENIX box - At VPP level: DEMS systems - At system operators: revision of EMS and DMS tools
• Two physical demonstrations: - Woking (hosted by EDF Energy in the UK) - Alava (hosted by Iberdrola in Spain)
• Identify potential present (and future) contributio n of DER to networks that can be performed at advantageous cost .
• Identify network needs and the way to satisfy them using DER • Revise regulations, incentive mechanisms and contra ctual
relationships between the different participants (D ER, aggregators, network operators and markets), to enh ance DER contribution to the network with a fair economic re turn
• Investigate aggregation (VPP) so the limited size o f DER and their non-deterministic behaviour limitations can b e overcome
• Develop the ICT architecture to make it work: - At DER level: FENIX box - At VPP level: DEMS systems - At system operators: revision of EMS and DMS tools
• Two physical demonstrations: - Woking (hosted by EDF Energy in the UK) - Alava (hosted by Iberdrola in Spain)
feni xChallenges in characterising VPP
• VPP is a complex “generating” plant – Diversity of technology and locations–electricity led,
heat led CHP, weather condition driven output – Characteristics of demand (process, amount of
storage, load recovery patterns) – Inter-temporal dependencies
• Uncertainty – VPP output, reserve capabilities and dynamic
response characteristics (wide range of time horizons to be considered – from seconds, minutes to hours)
– Role and value of ICT to facilitate VPP and reduce uncertainty (data management and forecasting tools)
• VPP is a complex “generating” plant – Diversity of technology and locations–electricity led,
heat led CHP, weather condition driven output – Characteristics of demand (process, amount of
storage, load recovery patterns) – Inter-temporal dependencies
• Uncertainty – VPP output, reserve capabilities and dynamic
response characteristics (wide range of time horizons to be considered – from seconds, minutes to hours)
– Role and value of ICT to facilitate VPP and reduce uncertainty (data management and forecasting tools)
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feni xVPP – analogy with conventional transmission system operation
• Large generation is integrated in transmission network operation and development – At transmission level power plants are the main source
of system control (balance between supply & demand) – Operators control transmission network flows by
modulating outputs of generators • In the future there will be a large number of small
generators connected to the distribution network – DER (and demand response) to provide control of
distribution and transmission networks – This integration will enhance the value of DER
• Large generation is integrated in transmission network operation and development – At transmission level power plants are the main source
of system control (balance between supply & demand) – Operators control transmission network flows by
modulating outputs of generators • In the future there will be a large number of small
generators connected to the distribution network – DER (and demand response) to provide control of
distribution and transmission networks – This integration will enhance the value of DER
feni xTSO network constraint (congestion) management
=
400 kV
feni xVPP – source of control
• VPP as a source of control of T & D Networks • VPP to be used by DSOs/TSOs to support system
operation – Frequency control (TSO) – Voltage control (TSO and DSO) – Flow control (TSO and DSO) – Stability enhancement (TSO) – Security and reliability enhancement (TSO and DSO)
• VPP as a source of control of T & D Networks • VPP to be used by DSOs/TSOs to support system
operation – Frequency control (TSO) – Voltage control (TSO and DSO) – Flow control (TSO and DSO) – Stability enhancement (TSO) – Security and reliability enhancement (TSO and DSO)
feni xExample: Alcora substation (20kV)
Cotasa feeder
2.2 MW
2.1 MW
9.1 MW
13 MW
2 MW
5 MW 6 MW
2.2 MW 2 MW
REST OF THE
NETWORK
Pset Pmin Pmax Qmin Qmax Offers Bids *scheduled (MW) (MW) (MVAr) (MVAr) *Inc *Dec
(MW) (MW) (MW) (MVAr) (MVAr) (€/MWh) (€/MWh) 1 COTASA 10 2 15.7 -12 12 60 10 2 INCOAZUL 0.96 0 1 -0.5 0.5 50 10 3 TILESA 0.29 0.25 0.3 0 0 40 10 4 ATOMISA 2 1 8 -4 4 30 10
Total: 13.25 3.25 25 -16.5 16.5
Index DG name
-15
-10
-5
0
5
10
15
PG VPP (MW)
-150
-100
-50
0
50
100
150
200
250
300
350
PG VPP (MW)
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400 and 220 kV Network400 and 220 kV Network
Interconnections
G G
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• Fenix Box & VPP – Optimise position of local of DER and demand, transmit data on
DER position and operating parameters, costs etc. • CVPP (Commercial Virtual Power Plant)
– Aggregates output from Fenix Box/VPP (before market closure) – Facilitates access to wholesale electricity markets – Reduces imbalance risk
• TVPP (Technical Virtual Power Plant) – Aggregates output and BOAs from Fenix Box/VPP (at market
closure and during system balancing) – Facilitates access to transmission system balancing congestion
management markets – Manages local constraints on distribution system – Facilitates access to scheduled ancillary services markets
• Fenix Box & VPP – Optimise position of local of DER and demand, transmit data on
DER position and operating parameters, costs etc. • CVPP (Commercial Virtual Power Plant)
– Aggregates output from Fenix Box/VPP (before market closure) – Facilitates access to wholesale electricity markets – Reduces imbalance risk
• TVPP (Technical Virtual Power Plant) – Aggregates output and BOAs from Fenix Box/VPP (at market
closure and during system balancing) – Facilitates access to transmission system balancing congestion
management markets – Manages local constraints on distribution system – Facilitates access to scheduled ancillary services markets
VPP Functionality & Interaction
Meter
Fenix Box Type 1
Level 2 Aggregation (10 to 100 units per level 1 aggregator)
Level 1 Metering (10 to 500 units per level 2 aggregator)
Fenix Box Type 2
Service to Market Stakeholders
Fenix Box Type 3
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12% Suburban
17% Rural
1.234 MVA = Total Capacity 687 MVA Installed capacity (1775 T.C.)
547 MVA Contracted capacity (799 T.C.)
1.907 Km of lines 80% aerial
20% underground
Alava Network
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1 x 60 MVA
TSO-DSO Boundary – 8 transformers with 480 MVA Insta lled capacity
Transformer 220/30 kV 320 MW peak demand
2 x 60 MVA
ELGUEA
GAMARRAALI
ALSASUA
JUNDIZ
PUENTELARRA
Capacitors MVAR
5,4 x 4 Mvar
G ELGUEA 30 MW
DER (CHP) MWG
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a) REAL TIME • Providing global services (TSO level)
1- Selling active power in the day ahead market 2- Tertiary reserve, balancing market 3- Selling reactive power capacity (PO7.4) (4.3.6.)
• Providing local services (DSO level) 4- Help maintaining voltages in lines
b) STUDY MODE AND SIMULATION 5- Use active power generation to avoid reconfiguring
the distribution network, even load shedding 6- Help keeping supply in local constrains, ….
a) REAL TIME • Providing global services (TSO level)
1- Selling active power in the day ahead market 2- Tertiary reserve, balancing market 3- Selling reactive power capacity (PO7.4) (4.3.6.)
• Providing local services (DSO level) 4- Help maintaining voltages in lines
b) STUDY MODE AND SIMULATION 5- Use active power generation to avoid reconfiguring
the distribution network, even load shedding 6- Help keeping supply in local constrains, ….
What will be demonstrated?
DER
CVPP
TSO
DSO
Regulator
06 June 2008 FENIX WP3 Status of CBA in SS
BUSMOD MODELS: Transaction tables No. Actor Pays for To
1 Consumers Retail electricity Suppliers
2 Suppliers Market electricity Market Operator
3 Market Operator Market electricity Central Producers
4 Market Operator Market electricity DER
11 Suppliers Over-demand TSO
12 TSO Under-demand Suppliers
15 TSO Upward balancing Central Producers
16 Central Producers Downward balancing TSO
17 DER Under-generation TSO
18 TSO Over-generation DER
21 Suppliers Reserves TSO
32 Regulator Management of transmission grid TSO
33 Regulator Investments in transmission grid TNO
34 Regulator Investments in distribution network DNO
35 Regulator Management of distribution network DSO
36 Regulator Sustainable electricity generation DER
41 DSO Bad power factor TSO
42 TSO Good power factor DSO
43 TSO Bad power factor DER
44 TSO Good power factor DER
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• To continue increasing DER penetration an economical framework giving a win situation for all actors is required
• Operational costs of the networks will increase although with some benefit in network reductions
• The role of the Regulator is critical to achieve this win situation
• To continue increasing DER penetration an economical framework giving a win situation for all actors is required
• Operational costs of the networks will increase although with some benefit in network reductions
• The role of the Regulator is critical to achieve this win situation
Preliminary conclusions
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Current Situation
Central Generatio
Current Situation Costs
Losses reduction
Central Generatio
Analysis 2 – Future estimation (2030)
Customer s and
Environmental benefits
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• In Alava current network FENIX will have a direct positive impact in terms of system costs just by improving DER contribution
• Scaling Alava results to a national/EU level gives interesting results
• Calculating results for year 2030 can be very tricky, DER penetration factor is an issue (it can be contraproductive at some degree)
• Combining flexible DER with demand management provides the most system efficiency.
• In Alava current network FENIX will have a direct positive impact in terms of system costs just by improving DER contribution
• Scaling Alava results to a national/EU level gives interesting results
• Calculating results for year 2030 can be very tricky, DER penetration factor is an issue (it can be contraproductive at some degree)
• Combining flexible DER with demand management provides the most system efficiency.
Preliminary conclusions
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Regulated revenues
Regulated revenues
Key current featuresKey current features Barriers to FenixBarriers to Fenix Recommendation for changeRecommendation for change
Distribution network revenues are based on
their regulated asset base
their regulated asset base
active network management is only used
where there are administrative or cost
barriers
active network management is only used
where there are administrative or cost
barriers
use active network management to defer or
avoid capital expenditure.
use active network management to defer or
avoid capital expenditure.
the operation and planning of the networks. Planning methodology is
conservative
the operation and planning of the networks. Planning methodology is
conservative
connecting rather than integrating DG
Network design methodology is focused on
connecting rather than integrating DG
DSOs should not be required to guarantee
physically firm access to all DG, and must be allowed to
use lean network design methodologies
DSOs should not be required to guarantee
physically firm access to all DG, and must be allowed to
use lean network design methodologies
Invisibility of DG to the
DSO
DSO
physically firm access
physically firm access
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Key current featuresKey current features Barriers to FenixBarriers to Fenix Recommendation for changeRecommendation for change
Wind / other renewable generation
Wind / other renewable generation
Subsidy for wind is non- marginal so that there is
no incentive for wind generators to participate
in balancing markets
Subsidy for wind is non- marginal so that there is
no incentive for wind generators to participate
in balancing markets
generation) to particiapte in ancillary service
provision where this means a reduciton in
output
generation) to particiapte in ancillary service
provision where this means a reduciton in
output
Regulator should put an incentive in place for wind to participate in downward
balancing markets
Regulator should put an incentive in place for wind to participate in downward
balancing markets
DG
DG
There is no way for these generators to provide
reactive power services to DSOs dynamically in real
time
reactive power services to DSOs dynamically in real
time
real-time provision of reactive power depending
on network status
real-time provision of reactive power depending
on network status
DG
DG
Limits exist for the minimum plant size that
can contribute to AS, and for most services the use of mixed production units
is forbidden.
Limits exist for the minimum plant size that
can contribute to AS, and for most services the use of mixed production units
is forbidden.
their portfolio are not able to contribute to A/S
provision.
their portfolio are not able to contribute to A/S
provision.
constraints on mixing technologies in aggregated
AS provision must be removed
If not technically needed, minimum plant sizes and
constraints on mixing technologies in aggregated
AS provision must be removed
Barriers and recommendations for distributed generation
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Key current featuresKey current features Barriers to FenixBarriers to Fenix Recommendation for changeRecommendation for change
Metering for most domestic consumers is
basic, although new meters must have time
discrimination
basic, although new meters must have time
discrimination
Domestic consumers‘ metering technology does not have sufficient IT and
communications technology to participate
Domestic consumers‘ metering technology does not have sufficient IT and
communications technology to participate
in a VPP
Common standard should be adopted for smart metering that has the capacity to interact
dynamically with VPPs
Common standard should be adopted for smart metering that has the capacity to interact
dynamically with VPPs
of-day or season.
of-day or season.
within-year fluctuations in price, so they have no
incentive to change their demand profile
Consumers are not exposed to within-day or
within-year fluctuations in price, so they have no
incentive to change their demand profile
All consumer tariffs should be time-varying and dynamic in order to
incentivise economically efficient demand response
All consumer tariffs should be time-varying and dynamic in order to
incentivise economically efficient demand response
Demand-side participation Demand-side participation
management schemes.
management schemes.
does not participate actively in markets
A large proportion of demand (small consumers)
does not participate actively in markets
Time-varying tariffs and public awareness
programmes should be introduced to encourage DSM at a domestic level
Time-varying tariffs and public awareness
programmes should be introduced to encourage DSM at a domestic level
Barriers and recommendations for the demand side
feni xRegulatory recommendations for Fenix
Distribution network revenue
regulation
- Regulators must allow owners of distribution networ ks to benefit when they use active network management to defer or avoid capital expenditure
- Unbundling of network businesses is not implemented in a way that creates a barrier to beneficial cooperation between DER and n etwork operators
- Regulators must allow owners of distribution networ ks to benefit when they use active network management to defer or avoid capital expenditure
- Unbundling of network businesses is not implemented in a way that creates a barrier to beneficial cooperation between DER and n etwork operators
Metering and communication Metering and
communication
- Where regulators mandate the use of smart metering, such meters must be required to be capable of real-time communication w ith other devices
- Regulators must ensure that different smart meterin g and related control technologies are interoperable.
- Where regulators mandate the use of smart metering, such meters must be required to be capable of real-time communication w ith other devices
- Regulators must ensure that different smart meterin g and related control technologies are interoperable.
Ancillary servicesAncillary services - Where electricity industry does not achieve this of its own accord, regulators
must ensure that there are markets for ancillary se rvices where this is possible and that there are no unjustified barriers to distribut ed generators’ participation in
these markets.
- Where electricity industry does not achieve this of its own accord, regulators must ensure that there are markets for ancillary se rvices where this is possible and
that there are no unjustified barriers to distribut ed generators’ participation in these markets.
Subsidies for renewable energy
generation and CHP
- Support mechanisms for renewable generation and CHP must allow such generators to benefit from participating in ancilla ry service provision through a
Virtual Power Plant.
- Support mechanisms for renewable generation and CHP must allow such generators to benefit from participating in ancilla ry service provision through a
Virtual Power Plant.
Conclusions up to nowConclusions up to now
feni xOverall project conclusions up to now
• If we want DER to effectively replace central, conventional generation, they have to contribute to system needs
• Aggregation will be required to handle large DER penetration and can be technically achieved
• Fenix is a first step, however a lot of changes have to take place: – DER Technology was not developed with this aim, however, and
provided the limitations imposed by the nature of DER, efficient support to the system is possible (example Voltage control)
– International awareness is required
– Regulatory frameworks have to promote DER contribution
• If we want DER to effectively replace central, conventional generation, they have to contribute to system needs
• Aggregation will be required to handle large DER penetration and can be technically achieved
• Fenix is a first step, however a lot of changes have to take place: – DER Technology was not developed with this aim, however, and
provided the limitations imposed by the nature of DER, efficient support to the system is possible (example Voltage control)
– International awareness is required
–– Regulatory frameworks have to promote DER Regulatory frameworks have to promote DER contributioncontribution
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