balancing€¦ · • balancing actions by tsos are reflected in imbalance tariffs! balancing...

Balancing

09/12/2013ULG ELEC0018-1 - Marché de l'énergie

Elia ENMAN

CustomerRelations

(CURE)

EnergyManagement

(ENMAN)

GridDevelopment

(GD)

NationalControlCentre(NCC)

Energy & System Management

EU MarketIntegration

(EMI)

Settlement,Metering, Data &Business Analysis

(SMDBA)

Implementation& Contracting

ArchitectureOperations

Anna TsiokanosArchitectureVilvoordselaan, 126B - 1000 Brussels

Energy Management within Elia

• AS quality & budget monitoring• AS settlement• ENTSOE LFC monitoring

• Contracts• Contracting & tendering

procedure• Implementation of changes/

project management

• Reserve sizing & product dvpt• Market design (AS, balancing,

imbalance tariffs)• XB cooperation for AS• R&D• NCs Balancing, LFC&R

•09/12/2013 •2

Agenda:

• Introduction• Who is Elia• Principles and roles in a liberalized market

• Balancing• General Principles• Roles and responsibilities• Nominations• Imbalance of BRP• Balancing mechanism = 2 time frames

• Ancillary Services• Primary Reserve• Secondary Reserve• Tertiary Reserve

• Needs for diversification• Context and challenges• Different axis for solutions

• Integration of demand in balancing• 2 ways• Challenges in integrating DSM• Demand products

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 3

Agenda:



• Ancillary Services• Primary Reserve• Secondary Reserve• Teriary Reserve



09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 4

Elia

OwnershipElia•100% of 380-150kV network•94% of high voltage network (70-30kV)

50Hertz•100% of 380-220kV network

-34% of the German 380kV network-19% owner of the German 220kV network

Age of networks

Elia•Less than 10 years for 50% of underground cables•Less than 20 years for 50% of lines & substations

50Hertz•Around 10 years for 90% of the network (refurbishedafter German reunification in 1989)

50Hertz

Who is the Elia Group

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 5

Liberalisation is an European initiative:• Creation of one European market• Free market …

• Producers• Supply• System operator

• Natural monopoly• Independent system operator• Strong regulation

Regulatory framework

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 6

Operating the transmission system, including monitoring energy flowsand organising support services.Managing balance injection and offtake on the system around theclock (7 days a week; 24 hours a day).

Maintenance of the transmission system and making the necessaryinvestments.

Market design & Balancing rules (approved by CREG);Development of tools and systems to promote the correct operation ofthe market. (Belpex, nominations, auctions of transmission capacityat the borders, etc.)

Marketfacilitator

Operating thehigh-voltage

infrastructure

Elia’s MissionThe tasks of the transmission system operator

Operating theelectricalsystem

•09/12/2013 •7

Principles & RolesConnection - Grid User

• The Grid User is entitled to : a reserved connection power the use and maintenance of the connection a stable and secure grid (power quality)

• The grid user owes connection costs

Access - Access Holder• The Access Holder:

has the right to inject or take off the energy appoints an Access Responsible Party and a Supplier announces the previsions of injection or offtake (subscriptions)

• The Access Holder owes the tariff for access to the grid

Balancing - ARP/BRP• The ARP is responsible for the balance of its portfolio :

Sum of Injections/Offtakes of all points belonging to its perimeter Trading exchanges (Hub/Belpex) Import/Exports

• Introduces nominations (including Import/Export and Hub Deals)• The ARP responsible for the injection of each PU > 25MW concludes a CIPU-contract• Has the right to offer ancillary services (Subject to CIPU)• The ARP owes Imbalance tariffs in function of its own imbalance and the imbalance of the zone

Supplier• is the company that sells electricity to its customers, who may be companies or individuals. It makes a commitment

to its customers to supply them with electricity to meet their needs. It can buy the electricity from a generator inBelgium or abroad, or on the energy exchange to meet this commitment.

Trader•09/12/2013 •8

~

ARPcontract

Injection

Offtake

Connection contractAccess contract

Access contract

Connection contract

Import / Export

Capacity rights C

apac

ity R

ight

s

Import / Export

Collaboration agreement

Distribution system operator

Elia Grid~ ~CIPU contract

Summary

09/12/2013 9

Agenda:






09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 10

Electrical energy (electricity) cannot be stored in large quantities by conventional means:

• For this reason, at any given point in time, the amount of electricity produced must correspondprecisely to the amount being used;

• This balance guarantees the secure operation of the electricity grid at a constant frequency of 50 Hz;• Unforeseen fluctuations between the feed-in and/or feed-out of electrical energy in the network must be

balanced out at short notice by rapidly increasing or reducing the power output of the suppliers of the so-called control reserves.

• Solutions:• Limit imbalances at the source role of BRP• Resolve global residual imbalances Ancillarry services

Balancing - General principles► Why is balance needed between electricity generation and consumption?

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 11

Balance between electricityconsumption and generation:coordination between TSOs

Federal Grid Code (Article 157(1)):

The BRP will provide and deploy allreasonable resources in order to maintain ona quarter-hourly basis the balance betweentotal injections and total offtakes within itsperimeter.

TSO ensures balance in its control area

General principles of balance management

Injection 0fftake

Condition for ARP1

•09/12/2013 •12

Every ARP is responsible for maintaining ¼ h balance between totalinjections and total offtakes in its portfolio and within its perimeter.

In order to achieve this golden rule, the ARP:

• is entitled to sell/purchase electricity on the HUB/Belpex• is entitled to import/export electricity and purchase capacity rights• should send day-ahead nominations for load, production, import/export and hub

deals.

The Balance Responsible Party signs an ARP contract with Elia.

RTE: Balance Responsible Party (BRP)

TenneT: Programme Manager (PM)

Amprion: Bilanzkreisvertrag

Golden rule: ARP Balance

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 13

Offtake

Offtake

Injection

The balancing perimeter of a BRPconsists of: Sum of Injections/Offtakes of all points

belonging to its perimeter((TSO or DSO grid) Trading exchanges (Hub/Belpex) Import/Exports

Import/exportExchanges

BRP ABRP B

BRP (ARP) is responsible to balance its perimeter on a 15’ basis• Day-ahead nominations of BRP must be balanced• BRP pays an imbalance tariff if the final position of its perimeter is not balanced• BRPs react on real-time imbalance tariffs to restore their perimeter balance• BRP has the right to offer Ancillary Services to Elia (via CIPU contract)

In real time, the TSO resolves residual imbalances caused byunpredictable events or forecast errors remaining near real-time

• by activation of Balancing Services• Balancing actions by TSOs are reflected in imbalance tariffs

Ad

equ

ate

ince

nti

ves!

Balancing Mechanism and responsibilities

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 14

1) HUB (DA + ID)- OTC market or Power Exchange

2) Cross-border (DA + ID)- after capacity allocation (≤obtained capacity)

3) Load (DA)- Per acces point (EAN) for GU directly connected to transmission grid- Global (per DGO) for consumption in distribution grid

4) Generation (DA + ID)- DA, Per acces point (EAN) for GU directly connected to transmission grid- DA, Global (per DGO) for injection in distribution grid- (DA + ID) Through TOPAZ for generation units under CIPU contract

ARP1 ARP2I/E I/E

Elia grid

HUBCross-Border

Generation

Load

Nominations► 4 types

quantity

price

quantity

price

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 15

The Imbalance of a given BRP is the quarter-hourly difference between:

its total injections within its balance perimeter, namely- Injections

- Metered at all injection points within the Elia Grid- distribution offtake positions allocated to the ARP if the result is a net injection

- Imports as nominated and executed by BRP- Purchases from other BRPs (HUB and Belpex) as nominated

&

its total offtakes within its balance perimeter, namely- Offtakes:

- Metered at all offtake points within the Elia grid- distribution offtake positions allocated to the ARP if the result is a net offtake- losses: 1% of all physical offtakes

- Exports nominated and executed by the ARP- Sales to other BRPs (HUB and Belpex) as nominated

& Corrections of its perimeter due to activation of balancing services

(see further in presentation)

ImbalanceOfftake

Offtake

Injection

Import/export Exchanges

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 16

Balancing Mechanism2 Timeframes

Adequate price signals by imbalance tariffs are an important tool for giving necessary incentivesto market parties to:

Good forecasting and continuous monitoring of the non dispatchable assets

Exploit full system flexibility within their perimeter : LT-DA programs, ID and RT re-despatching, (as from2014 BRP-contract will allow BRPs to deviate in real time from their balanced position in order tosupport the restoration of the system imbalance)

be pro-active in the balancing market (exchanges with other parties): LT contracts, participation to DA/IDmarkets

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 17

Balancing MechanismIn real time, the residual imbalance of the zone issolved by the TSO

2. TSO activates flexibility at it’s disposal:- Ancillary Services (precontracted reserves)- Balancing energy products (Free Bids)

Residual flexibility offorward ID Energymarkets

Pre-contractedreserves

Emergencyreserve with noguarantee

ord

er o

fac

tiva

tion

Pre-contractedreserves

Product & Description Capacitycomponent

Energy component

R2• Automaticallyactivated

• 30’’ – 15’• Up/down

Yearlyreservation

• Day Ahead bids• Activation price is ≈ fuel costbased

FreeBids

• Manually activated• 15’• Up/down

-obligation to bidresidual margin

for power plants ≥75MW

• Day Ahead and Intraday energybids

• No price limitation ≈ free prices

R3• Manually activated• 15’• Up

Yearlyreservation

• Day Ahead bids• Price limited by CAP ≈ fuel costbased

ICH• Manually activated• 15’• Up• <industrial load

Yearlyreservation

• Limited activations• Fixed price formula

InterTSO

• Manually activated• 15’• Up/Down

-agreement withRTE/TenneT for

mutual assistance

• Price defined in contracts• Additional incentive in tariffsunder certain circumstances

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 18

General principles of balancing► TSO balancing actions are reflected in imbalance tariffs

Reminder: objectives of imbalance tariffs:

Incentive to avoid imbalances and not to source on real time market (MP >>) Incentive to favour imbalances which are helping to resolve the system imbalance (important

for demand side management) Incentives to execute requested control power (MP > activation price) Transparency; real time publication

ARP Elia Elia ARP

Price ranking of activated volumes:

MIP

MDP

GUVGDV Elia ARP

ARP Elia

NRV = GUV-GDV = net regulation volumeMP= marginal price

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 19

Agenda:





• Integration of demand in balancing• 2 ways• Challenges in integrating DSM• Demand products•

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 20

Ancillary Services► How are TSOs organised to maintain balance?

• Technically this is achieved within the synchronous electricity grid of the UCTE in Europe by a three-stage regulationprocedure (primary, secondary, and tertiary control).

• Example: Power station failure in France. In the entire region, primary control is activated directly. After 30 sec,secondary control power is automatically called up in France, and replaced after 15 min by tertiary control, provided bypower stations in France and Spain.

•09/12/2013 •21

Ancillaryservice

Response time Characteristics

Primarycontrol

R1

+++Automatic

Decentralised

(local)

• Must be activated within seconds to maintain a continuous balance betweenGENERATION and consumption (DEMAND) for the complete SYNCHRONOUS AREA.

• Remains activated until secondary reserve power in the imbalanced CONTROL AREAhas taken over.

• Limited volumes which are determined at ENTSO-E level (Elia: 91 MW)

Secondarycontrol

R2

++

Automatic

Centralised

• Full activation in one direction must be possible in 7.5 min.• Remains activated until tertiary reserve power or ARP corrective actions have taken

over.• Pro rata activation - So far only performed by flexible production units in operation.• Elia sources yearly 140 MW• Participants should have appropriate control and communication equipment because the

secondary control signal (Delta P) is calculated by Elia and sent to participants forexecution.

Free Bids,Tertiarycontrol

R3

+

Manual activationby operator

Centralised

• Is activated manually in order to relieve secondary control and remains activated untilARP corrective actions have taken over.

• Free bids (CIPU): Units with a nominal power >25MW must offer their free capacity toElia

• The tertiary reserves are set out:• power generating plants (400MW)• power available from interruptible customers, min 1 activation/year (261

MW)• emergency contract with neighbouring TSO

Primary, secondary and tertiary reserves► Characteristics

•09/12/2013 •22

Primary reserves:► Principle

Objective: to maintain a balance between GENERATION and consumption (DEMAND) withinthe SYNCHRONOUS AREA, using “primary controllers”

Mandatory common reserve of 3000 MW for the whole synchronous area, distribution of this volume overall TSOs pro rata produced energy in Y-2: For Belgium ~91MW

Some ENTSO-E requirements: Must react within seconds ! (0 30 seconds) and be able to remain active for at least 15 minutes Full reaction on a frequency deviation of 200 mHz: 49.8 Hz – 50.2 Hz Insensitivity of controllers of ± 10mHz Primary control must be proportionally adjusted to follow frequency deviations.

In undisturbed situation, primary controller must be available without interruption. In case of a frequency deviation, the supplier must activate automatically (without intervention) the

primary control power required as defined in the contracts

•09/12/2013 •23

Objective: SECONDARY CONTROL maintains a balance between GENERATION and consumption (DEMAND)within each CONTROL AREA

SECONDARY CONTROL makes use of a centralised AUTOMATIC GENERATION CONTROL.

Via continuous set points, Elia asks to modify the active power of GENERATION SETS within a time-frame ranging from seconds to typically 15 minutes.

There are two types of regulation: Upward regulation: Elia can ask to produce more electricity than scheduled Downward regulation: Elia can ask to produce less electricity than scheduled.

In case of multiple suppliers, all suppliers are activated simultaneously and pro rata based on the totalvolume secondary that can be activated.

Contracted capacity: Elia contracts 140 MW of secondary reserves on a yearly basis from different suppliers. The contracted capacity must be available 100% of the time (possibility of exchange via a secondary market). Suppliers may also offer non contracted “free” bids on the top of the reserved power

Elia transmits a dynamic and continuous “set point” that represents the volume by which the suppliermust increase/decrease its production.

Secondary reserves:► Principles

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 24

Objective: Reserve power with which ELIA can restore the balance between the supply of anddemand for active power within the control area.

Specifically: “A third line of reserve to resolve major imbalances”• Cope with a major or systematic imbalance in ELIA control zone• Offset a significant frequency variation• Resolve major congestion problems

Only upward

Activated manually

To be activated within 15 minutes

400 MW from generation units

Activations of tertiary reserves are based on a technical and economic merit order:• First activation of free bids, merit order• When all free bids are used, activation of R3, merit order• When R3 exhausted inter TSO Import

Tertiary reserves

•09/12/2013 •25

Agenda:






09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 26

Context and challenges for balancing

Belgian Production park:Limited flexible fossil plants• 5500MW inflexible Nuclear (biggest 1076 MW)• 3700MW CCGTs but non-spinning• Green energy high entry cost due to subsidy

schemes (€/MWh)

+ Massive integration of renewable

Installed capacitywind and PVBelgium [MW]

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Wind [MW] Total

Solar [MW] Total

•Atrias Flex - Elia EnMan - Anna Tsiokanos•09/12/2013 •27

Evolution of System Imbalance towards larger and bigger(positive and negative) imbalances…

Context and challenges for balancing


Context and challenges for balancing:► Solutions for Elia = working on different axis

Improve System Imbalances @ the source (BRP):•Single marginal imbalance tariff since 01/01/2012•Enhance balancing publications: eg Wind and Solar forecastings•Continued market integration (NWE intraday, …)•Etc …

Diversify the assets providing balancing services:•Load participating to supply of primary control (2013)•Participation of aggregators in the supply of interruptible load (2013)•Participation of decentralized production through APP (current)•and new bid ladder platform (future) for R3 bids•2014: Short term procurement of reserves (monthly, weekly….)•Etc

Realize XB-synergies:•Participation of BE to iGCC (imbalance netting with 6 countries incl DE)•Intensive participation in the Network code drafting team•Study on the potential BE-NL XB synergies (with Tennet NL)•Participation in 2 European pilot projects for cross-border balancing•Etc …


Diversify the assets providing balancing services:

In the past generation units were built to follow consumption.

Generation

CentralizedPredictableDispatchable

DemandInelasticFlexibility


Diversify the assets providing balancing services:

…in the future, parts of our load will have to follow (unpredictable)generation.

Generation

DeCentralizedLess PredictableLess Dispatchable

DemandFlexibleFlexibility

Flexibility


Agenda:






09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 32

Integration of demand in balancing markets:► 2 possible ways, 2 different buyers

1. Participation in Forward ID and RT, Energy Markets in order tobalance BRP’s position

• Through specific contracts between BRPs-Suppliers and Grid Users• Flexibility contracts (Demand Side Management)

• Price-reflective supply contracts (Demand Response)

• Bringing demand-side flexibility to energy markets will reduce the need for AS andimprove long-term adequacy

• Some owners of decentralized production with pass-through contracts deviate inreal time from their D-1 nominations in function of imbalance prices using ELIAwebsite info

• Currently +/-300 MW of decentralized production participating to DSR

2. Ancillary Services offered directly to TSO• Through a BSP (grid user, aggregator or the BRP itself)• Entry in AS markets needs to be sustainable• Contribution of load: gradual evolution expected as feasibility gets demonstrated

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 33

Challenges: (1)

Technical constraints linked to industrial GUs• Availability (through year and or after one activation)• Smaller available volumes

Product DesignThe effectively activated energy is defined as the difference between the real profile andwhat would have been that profile if there was no activation use of a reference curve

Use of a nomination but limited to transmission grid Other (compiled) reference:

• last 15’ metering• an average ?• another day curve?• Miror consumer? ….

Impact on grid security (congestion)• Participation of Demand to energy markets will modify the “statistical

consumption profile” of grid users impact on security

• Grid security• Ex ante prequalification• Dynamic grid management

• Availability of product ~100%• BSP need to know where they are

allowed to use flexibility• Non discriminatory acces to balancing

market

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 34

Challenges: (2)

Market design and impact on BRP & Supplier

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 35

Zoom :Correction of BRP’s perimeter (1)

Correcting the perimeter of the BRP during an activation with the requested energy is a powerfulelement as it incentivizes the BRP to effectively deploy this energy:

Example 1: TSO requests 100MW – BRP activates 100MW

Example 2: TSO requests 100MW – BRP activates only 80MW

No additional control/penalty for the activation of Energy necessary

Activation settlement : 100MW @BidpriceImbalance settlement : 0MW

Activation settlement : 100MW @BidpriceImbalance settlement : - 20 MW @ MIPWith MIP ≥ Bid price

BRP

Initial Position:0MW

BRP

New Position:0MW -100MW

Request : 100 MWCorrection: -100 MW

BRP

Final Position:-100MW -0MW

Real activation : 100 MW

BRP



BRP

Final Position:-100MW -

20MW

Real activation : 80 MW

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 36

Zoom :Correction of BRP’s perimeter (2)

Activation settlement :100MW @ BidpriceImbalance settlement :0MW

BRP 2

Initial Position:0MW

BRP 2



BRP 2

Final Position:-100MW 0MW

BRP 1

Initial Position:-100MW

Zone is short:-100 MW

Zone is balanced 0 MWMIP = max bidprice

BRP 1

Position:-100MW

Imbalance settlement :-100 MW @MIP

Result:

Thanks to correction ofperimeter, activation costsare recovered by balancing

tariffs

Adjustment of the imbalance volume of the corresponding BRP is required in order to recover allactivation costs for balancing purposes by the imbalance settlement

Example 1: BRP 1 causes imbalance; BRP 2 is activated

BRP 1 -100 invoiced @ MIP

BRP 2 0 invoiced @ MIP

BRP 2 +100 Paid @ Bidprice

Total 0 009/12/2013 ELEC00180-1 - Lesson 11 - ELIA 37

Zoom:Implications when BSP is not BRP (1)

Elia investigated how to create a product that allows new players to bid energy asindependently as possible from the ARP. Therefore the impact that an energy bid comingfrom a GU could have on the BRP and on the supplier was analysed.

• Issue n° 1:GU sells the (40 MW of) activated energy to Elia but does not buy that energy as he

reduces his consumptionSupplier (buys 100MW, sells 60) has to be remunerated for the activated energy

BRP 2

Initial Position: +100 – 100 = 0MW

GU (Load)

offtake=100MW

ProdInjection=100MW

supplierBuys

Sells

BRP 2

New Position: +100 - 60 -40 = 0 MW

GU (Load)

offtake=100MW60MW

ProdInjection=100MW

supplierBuys

Sells

Request to GU : 40 MWCorrection BRP: -40 MW

Activation settlement : 40MW @Bidprice for BSP GU

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 38

Zoom:Implications when BSP is not BRP (2)

What if the GU activates less energy than requested (15 instead of 40)?

• Issue n° 2:• BRP’s perimeter is adjusted with the quantity of energy requested (40MW)• the BRP is penalized for the discrepancy between the requested and

effectively activated energy (40-15) BRP will be invoiced for the resultingimbalance at MIP

• Remark: When the BSP is also BRP there is no need to control and penalizediscrepancy as this is automatically done trough the tariffs

BRP 2


GU (Load)

offtake=100MW

ProdInjection=100MW

supplierBuys

Sells

BRP 2

New Position: +100 - 85 -40 = -25 MW

GU (Load)

offtake=100MW85MW

ProdInjection=100MW

supplierBuys

Sells

Request to GU : 40 MWCorrection BRP: -40 MW

Activation settlement : 40MW @ Bidprice for BSP GU

Imbalance settlement : - 25 MW @ MIP for BRP

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 39

Challenges: (2)

Market design and impact on BRP & Supplier• Solutions aiming at independency of BSP towards BRP should keep main principles

(1.a & 1.b) but mitigate any damage to BRP nor Supplier (2 & 3)

• Several explored models with pro’s and con’s

Related issues are analyzed in depth in collaboration with stakeholders (BSPs,BRPs ( Ah TF balancing & Expert WG AS by DER)

Correction of BRP’s perimetera. incentiveb. covering of activation costs

Requestedenergy

Activatedenergy

Discrepancyimbalance in BRP’s perimeter Penalty Perimeter has to be readjusted

Supplier has to beremunerated for the Energy

BSP has to be remunerated forthe service

1

2

3

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 40

Challenges: (3) Data flow complexity

Depending on the market model ( which party needs which metering, and information) ,Different data will be used for settlement, control of activation, impact on BRP/supplier Roles and responsibilities in terms of data ownership, data validity and data flows

have to be clarified

EliaRequests abloc of energy

BSP

Splits therequest intoEANs

DSO

Owns• Validated metering per EAN• Register EAN-BRP-Supplier

BRP1-Supplier 1

BRP1-Supplier 1

BRP 1-Supplier 2

BRP 2-Supplier 3

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 41

Demand Side ManagementR1 load: primary reserves through load on TSO grid

Elia developed a combination of asymmetric and symmetric primary reservesproducts in order to allow a demand side participation.Currently Elia has contracted 30,5MW of R1 load.

R1load = tailored to industrial consumers + compliant with Entso-Erequirements Activated for only deviations > 100mHz leads to a limited number of activations per

year = limited impact on the industrial processes. Linear modulation of the off-take on the frequency with a max activation time of

30seconds for the entire volume. Grid users or a pool of grid users (aggregator) connected to the ELIA grid can

participate in the yearly tendering. The supplier receives capacity fee. No remuneration for the activation.

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 42

Demand Side Management:Interruptible load on TSO Grid - ICH

Elia has contracted 261MW tertiary reserves via ICH product. This ancillary service is directly provided by industrial consumers with flexible

processes and/or aggregators The impact on the perimeter of the BRP is neutralized by replacing per client the

metering data by the nomination in case of activation.

Highly flexible and fast product Elia activates this reserve by remote control Grid user’s offtake must drop below shedding limit within 3 minutes No notification prior to activation

This product is the most efficient solution to deal with sudden outages of big powerplants: requires limited number of quick reactions per year.

Product is adapted to load constraints: Max 4 activations per year and at least 24 hours

between 2 interruptions Limited total duration of interruption over the

contractual period (16 or 24hrs) Use of a predefined load floor = shedding limit

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 43

Demand Side Management:R3 Dynamic Profile (as from 2014)

Elia is procuring currently 10MW of tertiary reserves sourced from large DSOcustomers as a pilot project. Based on this experimentation and supported byCREG, ELIA has contracted for 2014 50MW of R3 Dynamic Profile.

This ancillary service is directly providedby aggregators; aggregation is allowed overdifferent DSOs and different BRPs/supplierscovering both load and generation with 100%availability.

A pragmatic solution was elaborated in close cooperation with stakeholders(Expert WG) avoiding a negative impact on the concerned stakeholders

Further enhancements under analysis, in close cooperation with stakeholders.

Additional complexity when developing aDSO- oriented product: Really activated energy Several BRPs/suppliers Several DSOs

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 44

As from 2013, ELIA allows BRPs to sign a contract for an “Aggregated PowerPlant” which is constituted by a portfolio of different flexible generation unitsand loads connected to TSO and/or DSO grid that are part of the concernedBRP portfolio.

Elia can activate this extra flexibility in itsdaily balancing activations when available

The provider is remunerated for the activation atthe offered price. These free (negative) pricesallow RES to recuperate their opportunity costsin case of output reduction.

Demand Side Management:Free bids via APP (Aggregated Power Plant)

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 45

Bidladder platform= platform where market players can bid in all

available flexibility via explicit portfolio biddingwith locational information.

allow free bids from load and RES flexibility; flexibility connected to the distribution grid.

“block”-products which do not reflect necessarily the physicalconstraints of underlying resources. Differences between the productand physical reality need to be considered in the price when bidding toElia.

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 46

Demand Side Management @ ELIAOverview

DSM contracted ProductR1 Load Instant load modulation in case of

large frequency dips (<49,9Hz)ICH Fast decrease of load to a predefined

off-take level, within 3 minsFRR – R3 Dynamic Profile(from 2014)

decrease of load with a predefinedvolume, within 15 mins

30MW

261MW

Max 50MW

DSM free bids ProductCurrently via APP… Up/down wards regulationIn future via Bidladder Block bids of up/downwards regulation,

with possibility of 15 mins delay andmax 45 mins activation duration

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 47

Questions?

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 48

Elia Transmission SystemOperator

Elia local/regionalTransmission SystemOperator (Wallonia/Brussels) Local transmission system(Flanders)

Distribution systems

380 kV

0,4 kV

150 kV70 kV

30/26 kV 30/26 kV

~

~

Regulatory framework

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 49

Back up slides

09/12/2013 ELEC00180-1 - Lesson 11 - ELIA 50

Stage 2a = Execution phase:

Offtake at DSO level

Infeed/TS

Distribution/ARP

Elia > DSOs: infeed by substation

DSOs > Elia: Distribution of global

infeed among BalanceResponsible PartiesSum of ARPs = Total infeed

Meting

Meting Meting Meting

Meting

General principles of balance management► Balance: 2 stages

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Demand side managementOverview

Product Product Sourcing Supplied by Load connected to

FCR - R1 Load Load modulation in case of largeFrequency dips (as from Freq <49,900Hz)

YearlyContractedCapacity

BSP, open foraggregation

Transmission Grid only

FRR – ICH Decrease of Off-take to a predefined off-take level, within 3 minutes


BSP, open foraggregation

Transmission Grid

FRR – APP Increase/Decrease of Off-take/generationwithin 15minutes.

Day ahead,free bids at freeprice per 15min

BRP Transmission &distribution Grid

FRR – R3 DynamicProfile (from 2014)

Decrease of Off-take with a predefinedvolume. within 15minutes


BSP Transmission &distribution Grid

FCR: Frequency Containment Reserves: modulation of generation/load in order to stabalize frequency deviations, locally activated based on frequency measurementsFRR: Frequency Restoration Reserves: increase/decrease generation/load in order to restore frequency deviations, activated by the Elia National Control CenterBSP: Balance Supplier Party: anyone who can offer a FCR an/or FRR product to EliaBRP: Balance Responsible Party: Party who has signed an ARP contract and thus is responsible for the balance of a portoflio of generation/load

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• Elia is procuring currently 261MW of R3 reserves from Industrial Customers connected to theTransmission Grid (ICH)

• Grid users or a pool of grid users (aggregator) connected to the transmission grid can participate inthe yearly tendering

• The Supplier is remunerated for the capacity he makes available and for the activated energy

• Highly flexible product to deal with outages• Elia activates this reserve by remote control• Grid user’s offtake must drop below shedding limit within 3

minutes

• Product is adapted to load constraints:• Limited number of activations per year (2-4)• At least 24 hours between 2 interruptions• Duration of the activation between 15 minutes and 2-8hours

(depending on the contract)

DSM products :FRR though Interruptible load on TSO Grid - ICH

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• In the framework of an experimentation, Elia is procuring currently 10MW of R3 reserves sourcedfrom large DSO consumers. Based on this experimentation Elia is developing a new product “R3Dynamic Profile for 2014.

• Product similar to R3 Production• 100% availability required• Elia activates this reserve by remote control• Fixed quantity of upward reserves: The supplier must decrease offtake or increase local production with a fixed amount

within 15minutes.

• Product allows DSO connected flexibility to participate• Limited number of activations per year (~40)• At least 12 hours between 2 activations• Duration of the activation between 15 minutes and 2hours

• This ancillary service is directly provided by aggregators; aggregation is allowed over differentDSOs and different BRPs/suppliers

• A pragmatic solution which is avoiding a negative impact is being discussed with the concerned parties:

• The Supplier is remunerated for the capacity he makes available.• No remuneration for the activation

Demand side managementR3 Dynamic Profile: FRR on DSO Grid

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• Elia uses the current CIPU framework in order to allow generation and load to offer their flexibility toElia, by means of an aggregation into an “virtual power plant”

• CIPU: Coordination Injection Production Units• A framework used to manage and plan the major generation units (>25MW) in cooperation with the producers in order to

assure a secure exploitation of the Transmission Grid• In this framework all units who are technically able to alter their production program, must offer their flexibility to Elia

• Elia can activate extra flexibility within an existing framework• Elia activates this flexibility by remote control• Both upward as downward flexibility• The supplier must decrease offtake or increase production with the asked amount by Elia

within 15minutes.

• A Pool can offer flexibility to Elia:• Offered volumes for each 15minutes• Possibility to alter the offered volume during the day, allowing wind to participate

• Only to be offered by Suppliers who have signed an ARP Contract by Eliafor load/production that is a part of their portfolio

• The Supplier is remunerated for the activation at the offered price.• Free prices, which allows Green energy to recuperate the loss of GSC

Demand side managementAPP: aggregated power plant

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Model used for R3 DP – main characteristics

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Nominations► HUB (OTC) Power Exchange

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Main characteristics of most adequate model for DER (1)

1. NO correction of BRPs perimeter:

• BRPs position is raised with the effectively activated energy BRP (and through him Supplier) is remunerated by the tariffs BRP is not penalized for the discrepancy

• A specific control of the activation is necessary as there is no incentivizing correction• This works under the assumption that the final position of the BRP is favourable towards

the position of the zone NRV must have the same sign during the whole activationperiod duration of activation has to be limited (and recovery time as well) activation must happen after R3 production and volume has to be limited

BRP 2


GU (Load)

offtake=100MW

ProdInjection=100MW

supplierBuys

Sells

BRP 2

New Position: +100 - 60 -0 = +40 MW

GU (Load)

offtake=100MW60MW

ProdInjection=100MW

supplierBuys

Sells

Request to GU : 40 MWNo correction

Activation settlement : 40MW for BSP GUImbalance settlement : + 40 MW @ MIP

Main characteristics of most adequate model for DER (2)

2. Capacity Only product:

Result:

BRP 1 -100 invoiced @ MIP

BRP 2 +100 paid @ MIP

GU +100 Paid @ Bid price

Total +100 Bid price

Activation settlement fur GUImbalance settlement : +100 MW for BRP

BRP 2Initial Position:

0MW

Request : 100 MWNO correction

BRP 1

Initial Position:-100MW

Zone is short:-100 MW

Zone isbalanced

BRP 1

Position:-100MW

Imbalance settlement : -100 MW @MIP

GU100MW

Prod100MW

BRP 2NewPosition:

+100MWGU

100MW0MW

Prod100MW

BRP 2NewPosition:

+100MW

• As there is no correction of BRP’s perimeter, activation costs are not covered by tariffs• Activation costs have to be = 0 €/activation & entire remuneration provided on capacity fee # and duration of activations have to be contractually fixed

• Such product cannot be price maker out of merit order (at the end of ) Tariff signals have to be adapted when such product is activated

Roles and Responsibilities

Resource Adequacy

Energy Balancing

Ancillaryservice

Responsibility: government/marketTools:• Measurement/ forecasts• Capacity remuneration schemes

Responsibility: energy market actors/ TSO (residual)Tools:• Direct control (dispatchable load)• Response to price signals (non-dispatchable load)

Responsibility: TSO as buyer - generation&load as providerTools:• Direct control (dispatchable load) options (pre-contracted)• DSOs involved, especially when Distribution grid congestion

issues

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Demand side managementR1 load: FCR through load on TSO grid

• Elia developed a combination of asymmetric and symmetric FCR products in order to allow a demandside participation. Currently Elia has contracted 30,5MW of R1 load.

• R1load = tailored to industrial consumers + compliant with Entso-e requirements• Activated for only deviations > 100mHz leads to a limited number of activations per year = limited impact on the Industrial

Processes• Linear modulation of the off-take on the frequency with a max activation time of 30seconds for the entire volume

• Grid users or a pool of grid users (aggregator) connected to the transmission grid can participate inthe yearly tendering

• The Supplier is remunerated for the capacity he makes available.• No remuneration for the activation

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DERIGEcoGrid EU (FP7): Large-scale demonstration of real-time market-

base integration of DER and demand response. Elia leads the

assessment of the replicability of the EcoGrid model in EU.

GREDOR (Walloon gov.): Economic & technical aspect of new

processes (LT to RT) to be redesigned with DSOs and market actors.

Elia brings expertise in market development & grid operations.

SLIM (NER300): Large-scale demonstration of aggregation of

production of RES and consumer consumption in the Lommel region.

Elia participates in the design of interfaces to get AS from DER.

PROBA (internal): Elia and ULB develop new methodology for long-

term grid planning using risk-based reliability criteria to securely allow

the active management of DER.

Waasland (internal): Minimisation of the curtailed renewable energy

as a consequence of congestion on the local MV-grid by means of a

forecasting tool.

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balancing€¦ · • balancing actions by tsos are reflected in imbalance tariffs! balancing...

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