The role of congestion management in distribution networks
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The role of Congestion Management in distribution networks Timme van Melle 27/10/2016
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Transcript of The role of congestion management in distribution networks
The role of Congestion Management in distribution networks
Timme van Melle
27/10/2016
© ECOFYS | |
Smart Grids – Congestion Management
HV
HV
LV
2 02/11/2016 Timme van Melle
© ECOFYS | |
Main question: Comparison of system costs without
congestion management…
27/10/2016 Timme van Melle
> Always invest in additional grid capacity to supply peak demand
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Dominant EV Dominant PV
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…with system costs with congestion management
> Invest in local flexibility (Demand Side Management or storage) in some
cases
> Deploy this flexibility on demand side to manage congestion
27/10/2016 Timme van Melle
Smart Charging
Curtailment
Source: Ecofys 2016
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Dominant EV Dominant PV
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Total system costs were assessed
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Costs Benefits
More flexibility for energy markets
Reduction Low Voltage Grid costs
Reduction Medium Voltage Grid costs
Reduction Transmission
Costs
Less flexibility for energy market
Costs of flexibility
Costs of Smart Grid technology
Grid losses
Local flexibility
Infrastructure
Generation
Tax optimization
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Congestion management might increase generation costs…
27/10/2016 Timme van Melle
Costs Benefits
More flexibility for energy markets
Reduction Low Voltage Grid costs
Reduction Medium Voltage Grid costs
Reduction Transmission
Costs
Less flexibility for energy market
Costs of flexibility
Costs of Smart Grid technology
Grid losses
Local flexibility
Infrastructure
Generation
Tax optimization
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© ECOFYS | |
…but flexibility can also be used to decrease them.
27/10/2016 Timme van Melle
Costs Benefits
More flexibility for energy markets
Reduction Low Voltage Grid costs
Reduction Medium Voltage Grid costs
Reduction Transmission
Costs
Less flexibility for energy market
Costs of flexibility
Costs of Smart Grid technology
Grid losses
Local flexibility
Infrastructure
Generation
Tax optimization
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Cost analysis therefore includes generation costs
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ScenarioMaximum residual load(GW)
Avoidedcosts(million €/yr)
OPEX(million €/yr)
Total generationcosts dispatchablepower stations(€/MWh)
1) Without congestionmanagement
2) With congestion management
3) With additional system level optimisation
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Cost analysis
02/11/2016 Name9
0
50
100
150
200
250
300
350
400
450
500
With congestion
management
Without congestion
management
-47%Flexibility
Distribution LV
Distribution MV
Grid losses MV
Transmission
Generation
-31%
-3%-3%
Dominant EV Dominant HP Dominant PV
Yearly additional costs per household (€)
Without congestion
management
With congestion
management
Without congestion
management
With congestion
management
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Generation without congestion management
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Source: Ecofys 2016, PowerFys
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© ECOFYS | |
Generation with congestion management
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Source: Ecofys 2016, PowerFys
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© ECOFYS | |
Generation costs
27/10/2016 Timme van Melle
ScenarioMaximum residual load(GW)
Avoidedcosts(million €/yr)
OPEX(million €/yr)
Total generationcosts dispatchablepower stations(€/MWh)
1) Without congestionmanagement
20,85 2092 122,3
2) With congestion management 17,05 258,3 2046 113,1
3) With additional system level optimisation
16,99 4,3 2012 112,7
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Source: Ecofys 2016
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New mechanisms must ensure optimisation of network
capacity
> Results mean that the optimal network capacity is not always at the level of
the maximum uncontrolled peak – adding flexibility can reduce costs
> This means there must be a regulatory mechanism that helps to reach this
optimum
> This is a dynamic process
27/10/2016 Timme van Melle
Framework for overall
optimisation must be
established.
Optimum between network extension and use of flexibility
Cost
Capacity
Network
extensionFlexibilities
Total cost
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Source: Ecofys 2016
© ECOFYS | |
Impact of our outcomes on the regulatory framework
Flexibility provider
Markets (energy and
services)
DSOs
Services for congestion
management
Revenues
Ancillary services &
Energy
Revenues
Congestion management can be an
effective way to lower system costs
– it should be an option for DSOs
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Markets (energy and
services)
Flexibility provider
DSOs
Services for congestion
management
Revenues
Services & Energy
Revenues
Double revenues can increase
viability of business case
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Impact of our outcomes on the regulatory framework
© ECOFYS | |
Impact of our outcomes on the regulatory framework
Flexibility provider
Markets (energy and
services)
DSOs
Services for congestion
management
Revenues
Services & Energy
Revenues
This means however that flexibility
must be controlled by an entity
that can tap into both revenue
streams – and choose the optimal
deployment at any time
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Conclusions
> Congestion management reduces the overall system costs
> It reduces generation costs
> To realise the lower system costs the regulatory framework must be
designed so that congestion management services are rewarded and these
revenues can be combined with other – system related – revenues
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More information
> For further information, please contact
Timme van Melle
Senior Consultant Power Market Design
+31 6 31 013 756
Ecofys Netherlands
Kanaalweg 15-G
3526 KL-Utrecht
The Netherlands
www.ecofys.com
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