flexible grid management solutions in uk and switzerland
DESCRIPTION
by Martin Eschle, Head of Market Western Europe, Alpiq SATRANSCRIPT
Alpiq AG 1
BAF/27.05.12Martin Eschle, Head of Markets Western Europe, Alpiq AG
Flexible grid management solutions in UK and CH
smart energy, 05.09.2014 in Sion
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Overview UK and CH (2013)
CHProduction:-Thermal and Others (Renewables) 3.90-Nuclear 24.90-Hydro 39.60
-Imports 38.60-Exports 36.20
Final Consumption 60.00 Per Capita 7.5 kWh
Peak load 12 GW
gCO2/kWh < 100
NTC in MW-Import 7000 -Export 11000
UKProduction:-Coal 130.80-Oil 2.20-Gas 95.60-Nuclear 70.60-Hydro 4.70-Wind & Solar 30.50-Bioenergy 18.50-Imports 17.50-Exports 3.10
Final Consumption 314.90Per Capita 5.5 kWh
Peak load 56 GW
gCO2/kWh > 400(Target 2030 < 100)
NTC in MW-UK <> FR 2000-UK <> NL 1000-UK > IRL/NI 1000
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UK Electricity Distribution Areas
Source: Energy Network Association
- The local networks are connected to National Grid’s transmission network.
- The „customers‟ are the suppliers who rent out the network to pass electricity to their customers.
- Each DNO is a regional monopoly
- The system is regulated by the UK’s Office of Gas and Electricity market
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Top 5 negative Events in 2013- average duration 195 minutes
Source: Energy Network Association
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Price Control Reviews and Guaranteed Standards
- All 14 DNOs submit detailed business plans on the same cycle (currently 5 years transitioning to 8 years).
- Ofgem evaluates the DNOs plans and revenue requests against each
other and against other efficiency benchmarks.
- The outcome of the price control review is a set of allowed revenues (not rates) on a forward looking basis.
Supply restoration incentives:
£ 54 per household if outage is longer than 18 hours.
(additional £ 27 for each 12 hours)
£ 50 for 4 or more cuts each longer than 3 hours in a 12
month period.
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Triad: National Peak Load Reduction
Source: Ofgem
Incentives to reduce peak load on national grid level
Triad warning as a service Less than 30 hours of operation per
year for triad management
Tarif for three half-ours that have
the highest peak on national grid
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TSO’s in UK
Source: Energy Network Association
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Balancing market products in UK
(2800 MW)
(1200 MW)
(800 MW)
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Minimum criteria for DSM accaptance
Response Time
Minimum Duration
Minimum Power
2s 30s 2min 240min
30min 10min 15min 2h
3MW 10MW 50MW 3MW
Frequency Response
Fast
ReserveSTOR Product
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Balancing cost in UK
Total ~ 800 million
Total ~ 860 million
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Electricity Market Reform UK
Investment in secure and low carbon electricity generation
Estimated investment of £ 250 billion and 250 000 jobs
The four phases of EMR:
- 1 (to 2017): Contracts for Differences and first capacity auctions for winter
2018/19
- 2 (to 2020): Capacity Market is fully operational
- 3 ( 2020s): Maturity of technologies (neutral auctions), DSR, storage and
interconnection
- 4 (late 2020s): Carbon price is high, end of intervention
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Key differences between electricity, capacity and balancing services markets in UK
Electricity market:
Generators sell electricity (£/MWh) to suppliers for particular periods of time
Hedging price risk
Capacity market:
National Grid will buy capacity (£/kW/yr) on behalf of suppliers
Sufficient investment and reliability (4 years ahead, demand- or supply-side)
Balancing services market:
National Grid pays capacity providers (£/kW) for an option to buy energy at an agreed price (£/MWh)
Sufficient capacity at least cost to consumers
value for capacity in particular locations or particular flexibility
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Balancing market products in CH
Source: Swissgrid
+/- 71 MW +/- 400 MW
(~65% of total cost)
+ 450 MW
- 390 MW
Yearly cost ~ 200 Mio CHF
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DNO’s in CH
• More than 700 DNO’s
• Most DNO’s linked to TSO via «RNO’s»
• DNO’s customers are endcustomers
• Low constraints/ outages
• Regulation by StromVG and ElCom
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Energiestrategie 2050
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Overview of Flexitricity’s smart grid
high demand
TSO needs STOR services
TSO signal to aggregators
TSO signal to aggregators
Less thermal powerplants in standby
Balacing new
renewable energy
Industry is opting out
Supermarktes switch of air-condition
CHP units produce more electricity Activation of
standby generator
Cold storage has reduced consumption
Off-Grid with own generation
Delay of non critical process
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Some products
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Some products
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Revenue expectations with Capacity Market from 2018
Capacity
- Estimate £20k-£60k/MW pa
– Timescale: years
Headroom
– £15k-£35k/MW pa
– Timescale: hours/minutes/seconds
Footroom
– Estimate £15k-£35k/MW pa
– Timescale: hours
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Some facts
4,000 demand response calls
More than 200 MW
Market leader UK
24-hour operations
CHP, diesel, hydro, UPS, load
Fully automated
1s to 30 minute response
International experience
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Starting Position in CHScope of Benefits (only Xamax-Case)
• Distribution grid operators mostly charge maximum peak prices in the grid access (partly also in the energy price).
• Peak-Prices (Distribution grid): 25’000-120’000 CHF/MW/year
• Identification of rough potential due to historical load data
• Detailed on-site analysis
• Installation load management system and integration of the suitable
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Typical installation of Xamax
Payback less than 3 years on grid cost
Engineering and installation by Xamax
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From peak load reduction to secondary control power
From discrete steps to continous signals
Technology developed by Alpiq
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Demo
set value / actual value
Switches / Channels
Status by site (actual load, nominal values for poweralliance and local loadmanagement)
Control / Monitoring tolerance
Switched load by customers site
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Demo
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Some facts
More than 1500 existing systems
Market leader CH for load management
85 % load
15 % CHP, diesel, UPS
Objective: secondary control
<< 1s response
Open for Swiss partners (DNO’s)
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Backup