Introducing Project FALCON - Western Power
Transcript of Introducing Project FALCON - Western Power
Introducing Project FALCON
Paul Jewell
WPD Policy manager
Project FALCON
DSR Trials
Season 1 Results / Learning
Welcome
Why you are here?
• Results of the most advanced DNO commercial trials
• FALCON gives an insight to how new technologies will apply within a changing energy landscape
• DSR is a very hot topic and following on from previous DNO technical trials, WPD are keen to establish its likely role in BaU
• Commencing the journey from trial to BaU
Agenda
• Who are WPD ?
• Future Networks Team -
• Project FALCON intro
• DNO DSR • DSR use cases
• Trials overview
• EP Acquisition
• UK DRA
• Break
Agenda
• DSR Participants • Anglian Water Authority
• Thameswey Central Milton Keynes
• The Trials and Results • Identification & Recruitment
• Operations
• Results +/-
• Barriers
• DSR Market / Shared Services
• Changes
• Lunch
• 2015 Briefing (aggregators & participants only)
Who are WPD ?
• 6,000+ staff
• 7.8 million customers
• 55,300 KM² service area
• 220,000 KM Overhead lines
• 185,000 transformers
• Focussed on traditional DNO values
Key Performance Indicators
WPD South West (CI)
Ofgem target 73.6 CI
IIS performance 60.66 CI
WPD performance
17.6% better than target
WPD South Wales (CI)
Ofgem target 79.5 CI
IIS performance 48.37 CI
WPD performance
39.2% better than target
WPD East Midlands (CI)
Ofgem target 75.7 CI
IIS performance 48.16 CI
WPD performance
36.4% better than target
WPD West Midlands (CI)
Ofgem target 109.9 CI
IIS performance 81.39 CI
WPD performance
25.9% better than target
Security of supply 2012/13
Security of supply 2012/13
Key Performance Indicators
Security of supply 2012/13
Availability of supply 2012/2013
WPD South West (CML)
Ofgem target 51.0 CML
IIS performance 46.31 CML
WPD performance
9.2% better than target
WPD South Wales (CML)
Ofgem target 44.6 CML
IIS performance 29.80 CML
WPD performance
33.2% better than target
WPD East Midlands (CML)
Ofgem target 68.2 CML
IIS performance 30.19 CML
WPD performance
55.7% better than target
Key Performance Indicators Restoration of supply 2012/2013
Target 60 In addition to the performance reported to Ofgem, WPD has its own initiative called Target 60. Target 60 is designed to ensure that as many customers as possible have their electricity supply restored within one hour of a fault. For 2012/13 our performance against this initiative was: •WPD South West and South Wales = 85.7% of customers restored within one hour; •WPD Midlands = 87.1% of customers restored within one hour.
Key Performance Indicators
Customer service performance 2012/2013
Customer Satisfaction
Rank
(out of 14 companies)
Average overall satisfaction
(out of 10)
South Wales 1st (joint) 8.59
South West 1st (joint) 8.59
East Midlands 3rd 8.46
West Midlands 5th 8.31
Industry average - 8.00
Customer satisfaction
As part of Ofgem’s Broad Measure of Customer Satisfaction, a research agency undertakes satisfaction surveys every month with around 350 customers for each of the 14 electricity network companies. Surveys take place with customers who have had an interruption to their electricity supply (planned or unplanned), applied for a new connection or contacted the company with a general enquiry. In 2012/13, WPD ranked as follows:
Invest £6.3 billion in core distribution business activities
Deliver 75 outputs including voluntary commitments in every category
Maintain our number 1 position with respect to customer service and network
reliability, whilst improving service even further
Provides value for money by delivering £119m per annum savings as a result of
acquiring the Midlands networks
Continue to be at the frontier of efficiency by delivering a further £260m saving over
8 years
Reduce customer bills - WPD’s charges will reduce by an average of 11% (before
inflation)
Continue Innovation Programme rolling developments into business as usual
Innovation for Measurable Benefits
We don’t do innovation just for the sake of it –
Innovations still have to be held to account for their operational benefits and value to customers
Project FALCON is developing a definite software solution to assess the value of innovations against
traditional reinforcement methods to ensure that the correct technology is used across the network.
But more about that a little later.
WPD Future Networks Team
Roger Hey Head of Future Networks
Future Networks Team – Project Activity
INNOVATION PROGRAMME
WHAT SOLUTIONS ARE WE DEVELOPING?
V
THERMAL
– Dynamic rating of assets – Alternative running arrangements
VOLTAGE
– Active voltage control with remote monitoring – Power Electronics (FACTS)
FAULT CURRENT – Fault current measurement and limiting technology
Alternative Connections
COMMERCIAL ARRANGEMENTS
TIMED
• Generation curtailed within specific times
• Sub 1MVA
• Modelled seasonal capacity variations
• Localised control only
• No comms
• Non-optimised
SOFT-INTERTRIP
• Releases pre-fault capacity with trip facility
• 11kV and 33kV
• Real-time monitored values
• Small clusters of generation or simple pinch points
• Existing monitoring with localised control
ACTIVE NETWORK MANAGEMENT
• Fully optimises capacity based on all constraints
• Management of generation using LIFO principles
• Real-time granular control of output
• Requires new Active Network Management control and monitoring systems
Costs, Complexity & Network Optimisation
101010110100
ALTERNATIVE CONNECTIONS - TRANSITION TO BUSINESS AS USUAL
Policies and processes developed to handle applications
Tools developed to give curtailment assessments
Localised Control technical solution trialled
Internal Training
Alternative Connections BAU across all voltages and license areas
Nov ‘13 • 132kV DLR Offers Sent • <1MW Timed Offers Sent
Feb ‘14 • 33kV ANM Offers Sent • Costs finalised
Apr ‘14 • 11kV Soft-Intertrip Offers Sent
May ‘14 • Standard Techniques
Issued • Training Completed
Autumn ‘14 • Business Change
Complete
Project FALCON
Introducing Project FALCON
Sanna Atherton
Programme Manager
LOW CARBON
TECHNOLOGIES
LOW CARBON GENERATION
VOLTAGE RISE/DROP VOLTAGE STABILITY HARMONIC IMPACT THERMAL CAPACITY
BI-DIRECTIONAL ENERGY FLOW EQUIPMENT SUITABILITY POWER FACTOR FAULT LEVEL
PROJECT FALCON
Traditional Network Topology
LOW CARBON
TECHNOLOGIES
LOW CARBON GENERATION
VOLTAGE RISE/DROP VOLTAGE STABILITY HARMONIC IMPACT THERMAL CAPACITY
BI-DIRECTIONAL ENERGY FLOW EQUIPMENT SUITABILITY POWER FACTOR FAULT LEVEL
PROJECT FALCON
Traditional Network Topology
LOW CARBON
TECHNOLOGIES
LOW CARBON GENERATION
VOLTAGE RISE/DROP VOLTAGE STABILITY HARMONIC IMPACT THERMAL CAPACITY
BI-DIRECTIONAL ENERGY FLOW EQUIPMENT SUITABILITY POWER FACTOR FAULT LEVEL
PROJECT FALCON
Traditional Network Topology
Influence Impact Electrification of transportation ↑ Electrification of heating ↑ Energy Efficiency measures ↓ ToU Tariffs ↔ Businesses moves premises ↓ Businesses growth / expansion ↑ Embedded generation ↓ Government policy / incentives ↕ Domestic Smart Meters ↓ General growth in domestic consumer electrical goods ↑
KEY Increase demand ↑ Decrease demand ↓ Shift demand ↔ Conflicting impacts ↕
Flexible Approaches for Low Carbon Optimised Networks
PROJECT FALCON
Scenario Investment Model
PROJECT FALCON
The SIM
T1
T6
T5
T4
T2
T3
Constraint
COMMERCIAL TECHNIQUES
Technique 5 - Load Reduction Customers on the network with flexibility in their demand to either avoid completely or shift demand when instructed to a later time.
Technique 6 - Distributed Generation Customers with controllable generation that can be started or turned up on command to support local load or export power back onto the distribution network
PROJECT FALCON The Demand Side Response Challenge DNO DSR
Delta Impact
PROJECT FALCON The Demand Side Response Challenge DNO Use Case
Delta Impact at Constrained Substation
PROJECT FALCON The Demand Side Response Challenge DNO Use Case
PROJECT FALCON The Demand Side Response Challenge Commercial Techniques
Trial Service Parameters
Total MWs in Trial 10 MW
Number of Sites 10 – 15
Minimum Generation capacity Minimum Load Reduction
100 KW - (total target 9MW) 20KW – (total target 1MW)
Season Winter (Nov – Feb)
Contract Duration 2 years
Availability Time 16:00 – 20:00
Dispatch Notice 30 mins
Min Event Duration 1 hr
Max Event Duration 2 hrs
Maximum Total Hours (per annum) 40
Payment (utilisation only)
£300 per MWh
PROJECT FALCON The Demand Side Response Challenge Commercial Techniques
• Customer participation levels with DNO incentive levels
• Interaction with other DSR programmes • Interaction with triad avoidance strategies • Reliability of generation & load reduction • Market Barriers to DNO DSR
• Assess aggregators’ interest in working with DNOs to develop DSR propositions
• Aggregator vs Direct market engagement • Measurement of network impact of DSR • GAP analysis on DNO developing BaU
propositions within existing business
Trial Service Parameters
Total MWs in Trial 10 MW
Number of Sites 10 – 15
Minimum Generation capacity Minimum Load Reduction
100 KW - (total target 9MW) 20KW – (total target 1MW)
Season Winter (Nov – Feb)
Contract Duration 2 years
Availability Time 16:00 – 20:00
Dispatch Notice 30 mins
Min Event Duration 1 hr
Max Event Duration 2 hrs
Maximum Total Hours (per annum) 40
Payment (utilisation only)
£300 per MWh
PROJECT FALCON The Demand Side Response Challenge Commercial Techniques
STATISTIC VALUE Approximate area 150 KM² Primary Substations 7 Secondary Substations 188 Overhead cables Approximately 75 km Underground cables Approximately 750 km Customer connections Approximately 20,000
PROJECT FALCON The Demand Side Response Challenge Commercial Techniques
• 14 listed organisations approached • 7 aggregators expressed an interest in trial participation • 6 signed up to the contract • 3 recruited capacity to trial • Participant acquisition objectives
• Load Reduction vs Generation • Gas vs Diesel • Stand by vs CHP • Location, location, location.
DR Method Large Medium Small Generation > 1 MW 0.4 – 1 MW < 400 KW
Load Reduction >100 KW 25 – 100 KW < 25 KW
Project FALCON
UK Demand Response
Association
DRA and DNO:
“Together better”
UK Demand Response Association
Established 2012
Represents the Demand Response industry in the UK
Manages hundreds of megawatts of demand side response capability
Load management / generation by industrial and commercial customers
UK Demand Response Association
Make recommendations for policies, strategies and initiatives
relating to the encouragement and advancement of demand
response in the UK
Members
What is Demand Response?
Reducing demand on instruction for financial reward
Utilised by TSO
Services aligned to requirement
Industry & Commerce contributing 1.1GW1
Energy-savvy businesses
1 POSTnote 452, Electricity Demand-Side Response
Exploring Potential
LCNF projects
“R&D”, “innovation”, “trials”
To what extent can demand response:
Increase network flexibility
Assist management of network constraints
Support unpredictable growth in load
Minimise capital spend
A Customer View
UKDRA Members
Can help with customer relationships
Have knowledge of process
Customer side
DNO side
Are invested in understanding / supporting both
Would bridge the “control room” ownership
FALCON experience
Classify / Identify / Categorise
Educate / Teach / Inform / Sell
Listen / Hear
Understand / Comprehend / Appreciate
Incentivise / Reward / Profit
Feedback / Communicate
Enhance / Improve / Refine
FALCON experience
Classify / Identify / Categorise
Educate / Teach / Inform / Sell
Listen / Hear
Understand / Comprehend / Appreciate
Incentivise / Reward / Profit
Feedback / Communicate
Enhance / Improve / Refine
FALCON experience
Same challenges as all DNOs
Recruitment slow
Customer focus elsewhere
Turn-down scarce
Load-shift is a long game
Incentive required
DSR to DNO
Demand Side Response
Assist in business case for DNOs exploring alternatives
Appropriate answer to specific network challenges
DNO vs. TSO: conflict or co-operation
Recruitment
Customer understanding & engagement
Full support of the UKDRA
Agenda
• DSR Participants • Anglian Water Authority
• Thameswey Central Milton Keynes
• The Trials and Results • Identification & Recruitment
• Results +/-
• Barriers
• DSR Market / Shared Services
• Changes
• Lunch
• 2015 Briefing (aggregators & participants only)
Anglian Water & Project Falcon Matt Pluke – Energy Manager
Energy Strategy
HOW ?.... 1. Buy
2. Generate
3. Reduce
4. Demand Response
WHAT ?...
Demand Response
STOR
• 30MW contract
• 80 remote-start diesel generators
TRIAD
• 100 remote-start diesel generators
• Limited use of other diesel generators (500 sites) & CHPs (9 sites)
• Design & operation includes load-shedding
• £800k of TRIAD charges avoided
• £400k of reverse TRIAD income
Peak-lopping
• Primarily by load-shedding
• £400k saved vs doing nothing
Frequency Response
• In development
Project FALCON
Drivers
• Love Every Drop – Transformation through innovation & collaboration
• Energy & Carbon Strategy – Demand Response (no overlap with STOR & can be operated with TRIAD)
Site – Woburn Sands, 700kW diesel generator
Implementation
• Simple contract & good relationship avoided it falling down the priority list (i.e. small-scale & trial)
• Simple job to install the meter, but - on this occasion - made difficult by Anglian Water
Operation
• Call comes into a central operational control centre (OMC) to remotely start the generator
• Processes, relationships and contract managed by Supply Demand Specialist in the central Energy Team
• 22nd Jan – 28th Feb. 7 calls, 13hrs of running, £2.7k income
Learning
• OMC assigned a “champion” for Project Falcon - which will be extended to other areas of DR
• Keep it simple (stakeholders might benefit from a ‘map’ of the complex DR territory)
Project FALCON Demand Response
Central Milton Keynes Energy Station
Sean Rendall Operations Manager
• Background to Thameswey Energy
• Demand Response as a business opportunity
• Project FALCON experience to date
Outline
• Set up by Woking Borough Council 1999
• EESCo - Energy and Environmental Services Company
• Special Purpose Vehicle – PPPs, JVs, acquisitions
• WBC sole shareholder
• Assets £72m (2010)
• Operates across whole UK, centres of business in Woking and Milton Keynes
Thameswey Group - background
Thameswey Central Milton Keynes Ltd.
• Set up in 2005 • Partnership with English Partnerships (HCA) • Construct and operate CHP DH and private wire networks for phased
development of central MK • Delivered through turnkey contract with JV partner • Connections secured through Project Development Agreement,
planning requirements and commercial offer
Scope of Thameswey ESCos
Generating Distributing Supplying
Energy centre completed 2008
Energy Centre 6 MW CHP 10 MW boiler
The Hub connected 2008
The Hub (CBX3) 11,000m2 office, retail and A3 uses 400 apartments
‘Vizion’ connected 2008
‘Vizion’ (C4.1) 14,000m2 retail and other commercial uses 450 apartments
The Pinnacle connected 2009
The Pinnacle 18,000m2 high spec office 995m2 retail
Network Rail connected 2011
Network Rail HQ 37,000m2 office space
B4.4 Planned 2014
Assets
• 2 x 3MWe Jenbacher gas engines • 11 kV private wire network serving 1000 domestic and
commercial customers in central MK • 6 MVA grid connection • 26,000 MWh power produced for Thameswey private wire
customers • £20m assets
Revenues for ESCos
Generator
Distributor
Supplier
Sales of energy to ESCo and grid spill
ROCs, RHI, FIT
STOR, triad , Capacity Market ?
Use of system charges
Customer metered supplies
Maintenance charges
Connection fees
Project FALCON year 1
• Integration with existing STOR service • Maximise use of assets • Use of aggregator (Flexitricity) • Received 18 calls between 27/11/2013 and 28/02/2014 • Delivered on 16 calls – 94 MWh • Unavailable for 2 calls due to unplanned maintenance
DR as a Business Opportunity
• Maximise use of assets (3 MW engine in reserve for STOR since 2011) • Remote control of SCADA • Rapid response with very high availability • Added revenues/premium value • Flexibility (opt out) • Participation in smarter grids/positive profile for embedded generation Considerations: • Site operator capacity • Added complexity to operating strategies • Maintenance/O&M costs? • Slow information and cash flows
Introducing Project FALCON
Sanna Atherton
Programme Manager
The Trials and Results
• Identification & Recruitment
• Operations
• Results +/-
• Barriers
• DSR Market / Shared Services
• Changes
• DSR Report
• Q&A
PROJECT FALCON The Demand Side Response Challenge Trial Results -
• Aggregator and direct activity commenced in the summer • Variety of approaches adopted by different parties • Several sites identified as existing Energy Partners within the trials area • Others focussed their activity within the trial area with targeted campaign
• Call centre cold-calling • Existing customers profiled & contacted
PROJECT FALCON The Demand Side Response Challenge Trial Results -
PROJECT FALCON The Demand Side Response Challenge Trial Results -
• T6 trials – Distributed Generation met all the recruitment parameters • All T6 test parameters met by recruited sites
• T5 trials – failed to recruit any participants
PROJECT FALCON The Demand Side Response Challenge Trial Results -
• New site metering. • Elster A1700 • Increased granularity at 1 min intervals. • Measure generation output directly. • Network Metering. • Installed at Primary Substation. • Measure impact upstream at constraint point. • Outram Ranger P700
PROJECT FALCON The Demand Side Response Challenge Trial Results -
Trial Service Parameters
Total MWs in Trial 10 MW
Number of Sites 10 – 15
Minimum Generation capacity Minimum Load Reduction
100 KW - (total target 9MW) 20KW – (total target 1MW)
Season Winter (Nov – Feb)
Contract Duration 2 years
Availability Time 16:00 – 20:00
Dispatch Notice 30 mins
Min Event Duration 1 hr
Max Event Duration 2 hrs
Maximum Total Hours (per annum) 40
Payment (utilisation only)
£300 per MWh
PROJECT FALCON The Demand Side Response Challenge Trial Results -
AVAILABILITY
• 181 potential availability windows • 61 declaration unavailable • 66.3% reliability factor
PROJECT FALCON The Demand Side Response Challenge Trial Results -
UTILISATION
Event Date Time Duration (h:mm)
1 27th November ‘13 17:50 1:25
2 28th November ‘13 16:30 2:00
CANCELLED 6th December ‘13 - -
3 9th December ‘13 16:10 1:40
4 12th December ‘13 16:00 1:54
5 16th December ‘13 17:20 1:46
6 20th December ‘13 17:00 1:47
7 9th January ‘14 17:05 2:00
8 10th January ‘14 17:45 1:46
9 14th January ‘14 16:45 1:53
10 15th January ‘14 16:20 1:32
11 17th January ‘14 17:25 1:42
12 22nd January ‘14 16:10 2:00
13 24th January ‘14 16:30 2:00
14 27th January ‘14 17:20 1:05
15 29th January ‘14 17:00 2:00
16 21st February ‘14 16:10 2:00
17 24th February ‘14 16:55 2:00
18 28th February ‘14 17:05 2:00
PROJECT FALCON The Demand Side Response Challenge Trial Results -
Back Office Systems and Contracts
PROJECT FALCON The Demand Side Response Challenge
Barriers
• Organisational structure and current functions • Supplier arrangement • Systems • Human Resources • Market Conflicts
PROJECT FALCON The Demand Side Response Challenge Market Barriers
Short Term Operating Reserve
• System balancing • Firmly contracted at least a week ahead • Dispatched at short notice • Pays availability to maintain exclusive readiness • Pays utilisation when dispatched • Customer payments above competitive threshold for DNO use case
PROJECT FALCON The Demand Side Response Challenge
DSR Service Sharing
By developing a sharing model based around the variations in requirements we are seeking to
• Address functional requirements of TSO and DNO in a cost effective manner; • Demonstrate increased value to consumers; • Improve conditions for DNO adoption of DSR; • Increase the range of opportunities for DSR participants and • Establish the principal of asset sharing.
Operational Requirement DNO TSO Geographic sensitivity Yes No Period of notice to dispatch Long Short Availability of alternative capacity Unlikely Yes
Market Barriers
PROJECT FALCON The Demand Side Response Challenge
DSR Service Sharing
National Grid
Acknowledge DNO geographical sensitivity Have additional DSR capacity available at low marginal cost difference
DNO
Identify sites for DSR dispatch week-ahead
Operational Requirement DNO TSO Geographic sensitivity Yes No Period of notice to dispatch Long Short Availability of alternative capacity Unlikely Yes
Market Barriers
PROJECT FALCON The Demand Side Response Challenge Changes to the Trial
Winter 2014/15 DSR Trial
• Shift to week ahead running schedule as opposed to 30 min dispatch notifications
• Test shared service principal • Potentially improve reliability of DSR participation • Allow participants to integrate triad operation
• Double T5 payment to £600 per MWh • Open recruitment up again to all aggregators
• Run new smart meter trial
• New billing model for week ahead operation
PROJECT FALCON The Demand Side Response Challenge Changes to the Trial
Lots to do ….all new • Metering • Algorithms • Contracts • Software • Payments • Customers
PROJECT FALCON The Demand Side Response Challenge DSR Report
PROJECT FALCON The Demand Side Response Challenge DSR Report
Closed Briefing Session
for
Trial participants and Aggregators
PROJECT FALCON The Demand Side Response Challenge
Questions Please !!