smartnet project : tso-dso interaction architectures to ... · the smartnet project 4 architectures...
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This project has received funding from the European Union’s Horizon 2020research and innovation programme under grant agreement No 691405
Smart TSO-DSO interaction schemes, market architectures and ICT Solutions for the integration of ancillary services from demand side
management and distributed generation
SmartNet project: TSO-DSO interaction architectures to enable DER participation in ancillary services markets
Ivana Kockar (University of Strathclyde)
ENA Open Networks Advisory Board Meeting - London, 20th December 2017
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Agenda
SmartNet project
o Motivation
o Outline
o Overall project layout
Five coordination schemes
Market architecture design
The simulation platform
Cost Benefit Analysis (CBA)
Some (preliminary) regulatory remarks
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Winter package assigns a role to DSOs for local congestion management, but not for balancing
• Increased reserve needs due to significant increase of variable RES
• Opportunities from new DER in distribution?
• Five key questions:
Which ancillary services could be provided from entities
located in distribution networks
Which optimized modalities for managing the network at the
TSO-DSO interface
How the architectures of dispatching services markets
should be consequently revised
What ICT on distribution-trans-mission border to guarantee
observability and control
Which implications on the on-going market coupling process
Motivations
“Some actions can have a negative cross-network effect. For instance, TSO use of distributed resources for balancing purposes has the potential to exacerbate DSO constraints. Equally, whilst DSO use of innovative solutions, such as active network management, can deliver benefits to customers, if not managed properly they may in some cases counteract actions taken by the TSO” (CEER Position Paper on the Future DSO and TSO Relationship – Ref. C16-DS-26-04 – 21.09.2016)
EC (2016) Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on common rules for the internal market in electricity
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The SmartNet project
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architectures for optimized interaction between TSOs and DSOs in managing the purchase of ancillary services from subjects located in distribution.
three national cases (Italy, Denmark, Spain);
ad hoc simulation platform (physical network, market and ICT)
CBA to assess which TSO-DSO coordination scheme is optimal for the three countries.
Use of full replica lab to test performance of real controller devices.
Three physical pilots are also developed to demonstrate capability to monitoring and control distribution by the TSO and flexibility services that can be offered by distribution (thermal inertia of indoor swimming pools, distributed storage of radio-base stations).
http://SmartNet-Project.eu
https://vimeo.com/220969294/73d98edde6
Project video:
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Overall project layout
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Comparison of the national cases in a simulation environment and laboratory testing
Lab implementation of the simulation environment
Cost Benefit Analysis
Development of simulation software
Definition of the reference scenario
Simulation
Analysis of TSO-DSO coordination schemes
Definition of flexible devices profiles
Country-specific aspects and regulation
Network planning and operation
ICT specification and planning
Physical layer
Aggregation and bidding
Market layer
database
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TSO-DSO coordination schemes
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5 possible coordination schemes TSOs & DSOs for AS by distributed flexibility resourcesA. Centralized AS market model
B. Local AS market model
C. Shared balancing responsibility model
D. Common TSO-DSO AS market model
E. Integrated flexibility market model
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Five possible TSO-DSO coordination schemes:1- Centralized AS market model
1 common ancillary
services market managed
by TSO
Separate DSO process for
checking distribution
constraints (e.g.
prequalification)
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Five possible TSO-DSO coordination schemes:2- Local AS market model
Separate local market
managed by DSO for local
issues
Transfer remaining
flexibility to TSO ancillary
services market level
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Five possible TSO-DSO coordination schemes:3- Shared balancing responsibility model
Ancillary services market for transmission grid-connected resources managed by TSO
Local market for distribution grid-connected resources
Agreed pre-defined TSO-DSO scheduled profile
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Five possible TSO-DSO coordination schemes:4- Common TSO-DSO AS market model
Common flexibility market managed jointly by TSO & DSO
Variants:
o One optimization with all grid constraints
o Two optimizations: distribution & transmission constraints
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Five possible TSO-DSO coordination schemes:5- Integrated flexibility market model
Common flexibility
market managed by an
independent / neutral
market operator
No priority for TSO, DSO
or commercial market
player
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Summary coordination schemes
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Coordination scheme Role of the DSO Market organization(market operator)
Allocation principle of flexibility from the distribution grid
Centralized AS market modelLimited to possible process of
prequalificationCommon market (TSO) Priority for the TSO
Local AS market model
Organization of local market
Buyer of flexibility for local
congestion management
Aggregation of resources to
central market
Central market (TSO)Local market (DSO) Priority for the DSO
Shared Balancing Responsibility model
Organization of local market
Buyer of flexibility for local
congestion management and
balancing
Central market (TSO)Local market (DSO) Exclusive use for the DSO
Common TSO-DSO AS market model
Organization of flexibility
market in cooperation with
TSO
Buyer of flexibility for local
congestion management
Common market (TSO and DSO)
Minimization of total costs of TSO and DSOCentral market (TSO)
Local market (DSO)
Integrated Flexibility market model
Buyer of flexibility for local
congestion management
Common market (independent market operator) Highest willingness to pay
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Objectives of proposed Market Design
Distribution grid 1
Balancing services
Congestion management o At the transmission grid level
o At the distribution grid level (medium voltage)
In addition, the goal is also to avoid
creating voltage problems in the distribution grid (medium voltage)
Requirement for transmission and distribution grid models in the market clearing algorithm
Need for network observability and ability to forecast the near future network state
High Voltage
Medium Voltage
GL
GL
LV
GL
Distribution grid 2
Transmission grid
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How the simulator works
time time step k time step k+1 time step k+2
Market layer
Physical layer
Bidding and dispatching layer
Simulation based on three layers
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Market layer
Physical layer
Bidding and dispatching layer
How the simulator works
time
Network simulation
Automatic Frequency RestorationaFRR
Low-level operations on network asset
Physics simulation of controllable devices
time step k
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Market layer
Physical layer
Bidding and dispatching layer
Consideration of different markets
How the simulator worksHow the bidding process is simulated
time time step k
Evaluation of the available flexibility
Development of the flexibility bid
Measurement of the devices status
time step k
time step k+1 time step k+2
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Market layer
Physical layer
Bidding and dispatching layer
Collection of the bids from market players
Market clearing process
Estimation of the network state at k+1
time step k
How the simulator works
time time step k time step k+1 time step k+2
How the market process is simulated
Communication of the market clearing outcome
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Market layer
Physical layer
Bidding and dispatching layer
How the simulator worksHow the dispatching process is simulated
time time step k
time step k+1
time step k+1 time step k+2
Optimal repartition of the activation signal
Evaluation of the available flexibility
Measurement of the devices status
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Market layer
Physical layer
Bidding and dispatching layer
How the simulator worksHow the physical layer is simulated
time time step k
Network simulation
Automatic Frequency RestorationaFRR
Low-level operations on network asset
Physics simulation of controllable devices
time step k+1
time step k+1 time step k+2
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Key Market Design Considerations
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BiddingDimension
ClearingDimension
NetworkDimension
PricingDimension
How market actors can bid ? What market products are proposed?
What are the the market clearing frequency, time granularity and horizon ?
Which mathematical models for the distribution and transmission grids in the market clearing algorithm ?
What price is paid to the activated bids ?
TimingDimension
What are the objectives of the market clearing ?
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CBA among TSO-DSO coordination schemes
• Macro-level: system perspective• Micro-level: actors’ business case
• Literature review:o EPRI/JRCo REALISEGRIDo e-Highway2050
• Proposed indicators:o Enhanced provision of ancillary
services: total balancing cost (vs social welfare)
o Cost due to network limitations: comparing costs by taking network into account with Ideal situation (bus bar)
o Reduction of unwanted measures : unexpected congestions solved with curtailment of load/generation, etc. Monetized at imbalance price or associated resource costs
o Reduced network losseso Emissions savings: with standard
emission rates for each generation technology and CO2 prices forecasted at studied horizon.
ICT costs include communication, market clearing software)…. Steps :1. Comparison of the coordination
schemes in terms of functionalities and ICT
2. Convert each ICT system into a cost at target year
Main focus on issues that can differ between coordination schemes.
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Some regulatory (preliminary) remarks
• TSOs could need to share with DSOs part of responsibility for the provision of ancillary services if the contribution from entities in distribution will grow.
• a balance has to be sought for between local optimality and the implementation of a harmonized pan-European design.
• smaller DSOs have to integrate their efforts in order to be fit for the new responsibilities.
• real-time market architecture must to take into account the characteristics of the potential flexibility providers connected to distribution grids
• aggregators must be able to provide a simplified interface towards the market, hiding details of flexibility providers, and deliver efficient price signals to incentivize participation from distribution.
• viable business models must be available for all market participants, including DERs, aggregators and other customers.
• network planning will also have to facilitate better utilization of RES exploiting flexibility.
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SmartNet-project webpage
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http://SmartNet-Project.eu
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SmartNet-Project.eu
This presentation reflects only the author’s view and the Innovation and Networks Executive Agency (INEA) is not responsible for any use that may be made of the
information it contains.
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Thank You
Ivana Kockar
Contact Information
Affiliation: University of Strathclyde
Phone: +44 (0)141 548 3110Email: [email protected]