Upload
maude-morgan
View
215
Download
2
Tags:
Embed Size (px)
Citation preview
June 11th/ Amount and cost of losses. Florence School of Regulation. 2 de 16
AN INTRODUCTION TO RED ELÉCTRICAFirst transmission and system operator company in the world
Operates the Spanish power system and guarantees
continuity of supply
Designs, builds, owns and maintains the Spanish transmission network
Independence from market players and transparency as system operator
Commitment with society and environment and excellence in
managment
Red Eléctrica guarantees the appropriate operation of the Spanish power system: Efficient management at the service of the society
June 11th/ Amount and cost of losses. Florence School of Regulation. 3 de 16
ENERGY EFFICIENCY ROLE
Energy efficiency is a valuable tool to address these challenges
EU facing big challenges due to increased dependence, scarce energy resources, the need to limit climate change and to overcome economic crisis
Sustainability Competitiveness Security of supply
June 11th/ Amount and cost of losses. Florence School of Regulation. 4 de 16
CURRENT SITUATION IN EUROPE
EU’s efforts should focus on this pending issue
Current estimates show EU is not on track to achieve its target of energy consumption reduction
Reduce greenhousegas levels by 20%
Increase share of renewables to 20%
Reduce energyconsumption by 20%
Current trend to 2020
20%
20%
Current trend to 2020
10%
June 11th/ Amount and cost of losses. Florence School of Regulation. 5 de 16
ELECTRICITY NETWORKS AND EFFICIENCYElectricity network losses involve a significant component of electricity demand, and therefore represent an improvement area
Source: Euroelectric
EU network losses vs. total electricity demand
The treatment of losses is a key topic to be addressed:• in order to achieve energy efficiency improvements• requires a proper economic and regulatory approach
June 11th/ Amount and cost of losses. Florence School of Regulation. 6 de 16
Losses= energy generated - energy delivered to customers
“NETWORK LOSSES” FOR POWER SYSTEMS
Energy generated
Energy delivered
Technical losses Non technical losses
power dissipation in electricity system components such as transmission and
distribution lines, transformers, and measurement systems
Caused by actions external to the power system and consist primarily
of electricity theft, non-payment by customers, and errors in accounting
and record-keeping
Power losses in transmission and distribution networks may account for up to 8-15% of the total amount of electricity produced1
There is not a standard definition of network losses within the EU
June 11th/ Amount and cost of losses. Florence School of Regulation. 7 de 16
There are no standard procedures neither for the allocation of network losses among market participants
Who should be responsible for losses costs?
LOSSES COSTS ALLOCATION
June 11th/ Amount and cost of losses. Florence School of Regulation. 8 de 16
MAIN COMPONENTSTechnical losses are the main part of network losses which include both transmission and distribution losses
1-2%
2- 4%
1- 2%
4- 6%
Step-up transformer from generator to Transmission line
Transmission line
Step-down transformer from Transmission to Distribution network
Distribution network transformers and cables
Source: Schneider Electric
June 11th/ Amount and cost of losses. Florence School of Regulation. 9 de 16
LOSSES TREATMENTIn many Member States, TSO’s are responsible for the procurement of energy losses in transmission through market mechanisms
“Transmission system operators shall
procure the energy they use to cover
energy losses and reserve capacity in
their systems according to
transparent, non discriminatory and
market based procedures, whenever
they have such a function.”
Average costs of losses are accepted by the regulator and used in the tariff calculation
Directive 2009/72 Art. 15-6
Energy generated
Energy delivered
TSO procurement
• Power exchanges
• Bilaterally
• By action/tenders
June 11th/ Amount and cost of losses. Florence School of Regulation. 10 de 16
LOSSES TREATMENTHowever there are alternative models for losses management such as Spain, where consumers pay for all losses (transmission and distribution)
Regardless of the chosen scheme, incentives for network operators can be set into place for losses reduction
Energy generated
Energy delivered
100 GWh 90 GWh
Consumer billed for 100 GWh
• Consumers have to pay the 100%
of the cost.
• Losses are calculated through a
coefficient associated to their
tariff.
• Losses are priced at the same
market price than the energy
consumed
June 11th/ Amount and cost of losses. Florence School of Regulation. 11 de 16
TSO’S ROLELosses in the T&D system depends greatly on the physical characteristics of the system
Joule effect: P=I2R
R=ρL/S Losses increase with distance, network load
and decrease with voltage
How can TSO’s improve network losses?
June 11th/ Amount and cost of losses. Florence School of Regulation. 12 de 16
TSO’S ROLETSO are responsible for several activities that play a significant role in the determination of losses
Network
design
Network operation
1 2
Network and equipment
maintenance
3
Nonetheless the room for improvement in these activities for losses reduction is quite limited
June 11th/ Amount and cost of losses. Florence School of Regulation. 13 de 16
TSO’S ROLE
Geographical size of the market, number and dispersion of costumers and generation are important driving factors which can not be modified
There are a number of external factors beyond TSO’s responsibilities with a significant influence on the level of losses
Average demandAverage generation Generation-demand
June 11th/ Amount and cost of losses. Florence School of Regulation. 14 de 16
INCENTIVESEffectiveness of incentives depend on the real capability of TSOs to control losses
Incentives for TSO must be tailored to the manageable part of technical losses
Incentive associated to losses purchase
Incentive= Losses procured – Losses accepted by regulator
• Volume of losses
• Unit cost of losses
Incentive associated to a reference value
Parameters
Incentive= +/- (Loss energy target - Real energy lost) * % Revenue
Do they consider external factors to fix a target?
• Volume of lossesParameters
June 11th/ Amount and cost of losses. Florence School of Regulation. 15 de 16
CONCLUSIONS
No standard definition for energy losses
As part of electricity demand, network losses represent an efficiency improvement area
Main losses drivers are not manageable by TSO’s
The design of incentives is thus best left to subsidiarity
12
3
4