end-to-end power system operation under the transactive energy · pdf file ·...
TRANSCRIPT
End-to-End Power System
Operation under the
Transactive Energy Paradigm
GWAC Meeting at PJM
March 11-12, 2014
Farrokh Rahimi, Ph.D.
Vice President
Market Design and Consulting
Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2014 Open Access Technology International, Inc. 3
• Emerging Paradigm Shift Closing the Gap
Between Bulk Power and Distribution System
Operations
• Possibilities and Limitations of Extending
Wholesale/Bulk Power Transactive Techniques to
Retail/Distribution Operations
• Classification of Prosumer-to-Grid Transactive
Energy Products and Services
• Distribution System Operator (DSO) as Market
Agent and Transactive Energy Facilitator
• A New Transactive Node Technology Completing
the End-to-End Missing Link
Topics
Proprietary and confidential. Do not copy or distribute without permission from OATI. © 2012 Open Access Technology International, Inc. 4
Background • Electricity Industry Restructuring (mid-1990s)
– Transmission Open Access
• Transmission Reservation and Scheduling
• Tagging
– Market-based Pricing
• Energy
• Contingency Reserves
• Regulation
– Demand Participation
• Very limited price-responsive demand
• Measures against supply market power due to inadequate demand elasticity
• Emerging Paradigm Shift – Enabling technologies: Advanced Metering Infrastructure, Smart Devices
– Demand-side participation
– Impact on Distribution Utility Business Model
– Possibility to extend transactive techniques from wholesale to retail
Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2014 Open Access Technology International, Inc. 5
Transactions for the End-to-End Operation
Wholesale Markets
Transmission System
Residential Load
4kV – 13kV
600/480/240/120 V
34kV
Secondary
Distribution
Primary
Distribution
Residential
Commercial
69kV /132 kV
Industrial
Sub-
Transmission
PHEV DG
DG
P-Node
Wholesale
Prices
&
Settlement
Charges
ISO and Wholesale
Markets • Energy
• Ancillary Services
• Capacity
• Day-Ahead
• Real-Time
Transmission System
Retail
Prices
Trans.
Constraints
DR Info. &
Dist. constraints
Supply
Distribution System
Customers
Direct
Load
Control
DR,
Ancillary
Services
Supply &
Demand
Response
Data
Pricing
Electricity
Legend
©2014 OATI, Inc.
Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2014 Open Access Technology International, Inc. 6
• Wholesale transactive tools and techniques have
been developed the last two decades for
management of bulk power operations in bilateral
and centralized markets including:
– Physical and financial deals
– Bidding and Scheduling
– Bid-matching/market-clearing/pricing
– Transmission capacity reservations and auctions
– Congestion management
Wholesale vs. Retail Transactive Techniques
Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2014 Open Access Technology International, Inc. 7
• Lessons learned from bulk power operations and wholesale energy markets can be applied to distributed resources, Demand Response (DR), retail markets, and distribution system operations. These include: – Scheduling and dispatch of demand-side resources with
economic and reliability based objectives
– Distribution congestion management and capacity reservations
– Distribution capacity auction to hedge against limited distribution capacity
– Variable Generation balancing using demand-side resources – scheduling and operational considerations
• Except for Energy, products transacted in wholesale markets and used for bulk power operation do not have a corresponding counterpart in retail markets and distribution operations
Wholesale vs. Retail Transactive Techniques (Continued)
Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2014 Open Access Technology International, Inc.
Tradable Market Products
• Existing Market Products
— Capacity (forward markets)
— Energy (forward; Day-Ahead (DA); Real-Time (RT)
— Ancillary Services (forward; DA; RT)
• Contingency Reserves
— Spinning Reserve/Responsive Reserve/Synchronized
Reserve
— Supplemental Reserve/Non-Spinning Reserve
• Regulation (Symmetrical; Upward/Downward)
• Emerging Market Products (Flexibility Reserves)
— Flexible ramping
— Load following
— Balancing Energy
Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2014 Open Access Technology International, Inc.
Comparison of Load Following, Ramping,
Balancing Energy, and Regulation
• Flexible Ramping
— May have two components (procured and priced
separately)
• Capacity (MW) or Ramp Rate (MW/min)
• Energy (deployment)
— May be directional (Ramp up; Ramp Down as
separate products)
• Load Following
— May have two components (procured and priced
separately)
• Capacity (reservation)
• Energy (deployment)
— Generally bi-directional
Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2014 Open Access Technology International, Inc.
Comparison of Load Following, Ramping,
Balancing Energy, and Regulation (Continued)
• Balancing Energy
— May or may not have a capacity component
— Generally bi-directional
• Regulation
— Generally bidirectional; however in some jurisdictions
(CAISO, ERCOT, SPP IM) two products are procured and
priced separately, namely Regulation Up and Regulation
Down
— May have up to three components
• Capacity (reservation)
• Mileage (based on FERC Order 755 issued October 20, 2011)
• Energy (considered in co-optimization, but generally paid
either as bid or as price taker)
Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2014 Open Access Technology International, Inc.
Comparison of Regulation and Load Following
• Time Frame
– Regulation: Seconds (usually four seconds)
– Load Following: Minutes (usually five minutes)
• Pattern
– Regulation: Random (little or no inter-temporal correlation)
– Load Following: Somewhat predictable (inter-temporal correlation)
• Swing MW Magnitude
– Regulation: Small (~1% Peak Load)
– Load Following: Large (~5%-10% of Peak load)
• Sign Reversal
– Regulation: Frequent (several times during a 5-minute dispatch interval)
– Load Following: Generally same sign during a 5-minute dispatch interval
• Net Energy Generation
– Regulation: Zero net hourly instructed energy deviation
– Load Following: Non-zero energy service
Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2014 Open Access Technology International, Inc.
Product Differentiation • Retail/Distribution Operation
– Energy Differentiated by
• Speed of response
• Minimum size
• Directional change
• Automatic vs. manual control
• Need to map Retail Capabilities to Bulk Power Operations
Services
– Energy
– Capacity (Forward Market-based Auctions; Resource Adequacy
Requirements)
– Ancillary Services
• Non-Spinning/Supplemental Reserve (10 minutes; 30 minutes)
• Spinning Reserve (10 minutes)
• Regulation (five to ten minute ramp; four-second response)
– Emerging Flexibility Reserves (five to 15 minute: Ramping; Load
Following)
Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2014 Open Access Technology International, Inc.
Firm
Commit-
ment
Noti-
fication
Conventional Maybe Yes Yes Yes Yes Yes Yes Yes
Flexible Maybe Maybe Yes Yes Yes Yes Yes Yes
Day Ahead Maybe Maybe Maybe Yes Yes Yes Yes Yes
Real-time Maybe Yes Yes Yes Yes
30 Min Non-Spin Maybe Yes Yes Yes Yes
10 Min Non-Spin Maybe Maybe Yes Yes Yes
10 Min Spin Yes Yes Yes
Regulation Maybe Yes Maybe
Ramping Maybe Yes Maybe
Flexibility Reserve Maybe Yes Maybe
Wh
ole
sale
Pro
du
cts
Demand-Side ProgramsNon-Dispatchable Dispatchable
VoluntaryDemand-limiting
Control
Direct Load Control
(DLC)Conservation
Voltage
RegulationNotification
Eco
no
mic
Re
lia
bil
ity
Capacity
Energy
Ancillary
Services
Balancing(New)
Demand-Side Programs and Wholesale
Products
©2014 OATI, Inc.
Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2014 Open Access Technology International, Inc.
Technical Requirements
©2014 OATI, Inc.
Individual
AssetAggregate
Conventional Contract No No Yes Yes
Flexible Various No No Yes Yes
Day Ahead Hourly No No Yes Yes
Real-time 5 Minutes No No Yes Yes
30 Min Non-Spin 30 Minutes No Yes Yes Maybe
10 Min Non-Spin 10 Minutes No Yes Yes Maybe
10 Min Spin 10 Minutes Maybe Yes Yes Maybe
Regulation 4 Sec to 5 Min Yes Yes No No
Ramping 5 Minutes Maybe Yes Yes Maybe
Balancing Energy 5-15 Minutes Maybe Yes Yes Maybe
Telemetry Interval
Metering (Aggregate)
Baseline
Estimation (Aggregate)
Bal
anci
ngRe
liab
ilit
y
ProductsResponse
Time
Cap
acit
yA
nci
llary
Serv
ices
Ener
gy
Eco
no
mic
Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2014 Open Access Technology International, Inc.
Demand-side Asset Modeling
Aggre
gati
on Dis
patc
h
Resources/VPPs
DR Programs ∑
5 Min 10 Min 30 Min 1 Hr DA
Contracts
1 Min
• Modeling Assets and Aggregating them into Dispatchable Resources
©2014 OATI, Inc.
Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2014 Open Access Technology International, Inc. 16
Linking Demand-Side Capabilities to Wholesale
Operations – Virtual Power Plant (VPP) Construct
Retail Tariff • Direct Load Control
• Time of Use
• Critical Peak Price
• Dynamic Pricing
• Commercial and Industrial Curtailment Contracts
• Etc.
Transmission
OperatorBalancing
Authority
Bulk Power
Markets
Virtual Power Plant
Dispatch & Operations
Substation
Substation
SubstationSubstation
Bulk Power Products
• Hour-Ahead Firm
• Non Spin
• Spinning Reserves
• Market-Based Prices
Virtual Power Plant • Grid Location
• PMAX , PMIN
• Ramp Rate
• Min/Max Up and Down Time
• Incremental Cost Curve
Capability Data
Telemetry
Dispatch
Instructions
©2014 OATI, Inc.
Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2013 Open Access Technology International, Inc. 17
DSO as TE Facilitator
Balancing Authority (ISO/RTO/Market Operator)
DSO
µGrid
µGrid
µGrid
TX Substation TX Substation
BEMS
HEMP
BEMS
HEMP
Bids & Offers; Forecasts
Dispatch Instructions
Balancing Authority (Transmission Operator)
Availability; Forecasts
Deployment Instructions
DSO
µGrid
µGrid
µGrid
TX Substation TX Substation
BEMS
HEMP
BEMS
HEMP
©2014 OATI, Inc.
Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2013 Open Access Technology International, Inc. 18
• A New Transactive Node Technology from OATI
– Low cost
– User-programmable
– Highly flexible
– Suitable for both pier-to-pier and hierarchical
transactive exchanges
– User ability to enable/disable automatic control triggers
based on a variety of stimuli: price, ambient conditions,
predefined events, manual triggers, etc.
• Demonstration Project Underway
Completing the End-to-End Missing Link
Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2013 Open Access Technology International, Inc. 19
End-to-End Transactive Solution Example
Balancing Authority/
Wholesale Market Operator
DSO
µGrid
OATI webSmartEnergy
Suite
OATI webTrader
OATI webSmartView
©2014 OATI, Inc.
Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2014 Open Access Technology International, Inc.
Concluding Remarks
• Opportunities for Prosumer Participation: – Win-win framework for consumers, utilities, and system
operators
– Provision of new products and services
– Environmentally friendly solutions
– Improved system operational reliability and economics
– Low cost versatile Transactive Node technology available
• Barriers to DR Participation: – Operator Dependability Concerns (potential solution: DSO
concept)
– Regulatory Barriers. Example: Lack or ambiguity of regulatory provisions for demand-side tariffs, compensations to utilities, curtailment service providers, etc.
– Technical Barriers. Examples • WECC frequency responsiveness requirement for provision of
spinning reserves
• Minimum size or telemetry requirements