Overview of current services from DSR and future challenges Vandenbroucke_Elia.pdf · Overview of current services from DSR and future challenges Febeliec, 15/6/2015 ... The different

Overview of current services from

DSR and future challenges

Febeliec, 15/6/2015

Hans Vandenbroucke

2

DR potential and realized efforts

Source: Febeliec, 15/6/2015 - Hans Vandenbroucke

A changing context…

3

Energy system is changing rapidly and need for flexibility is urging!

New players active in the market facilitating DSR: aggregators

Suppliers offering price and/or volume flex to their larger customers (dynamic supply contracts)

ELIA addresses this need by conceiving specific products in close cooperation with stakeholders (RES,

generators, consumers, DSOs, regulators and aggregators)

Demand Side Response and Demand Side Management are important tools

for ELIA & DSOs in managing the system security (residual balancing & congestion)

for BRPs in self-balancing.

With development of flexibility, existing market models and processes are impacted !

Source: EG3 REPORT SMART GRID TASK FORCE

DSR products

Febeliec, 15/6/2015 - Hans Vandenbroucke

Overview current load products @ELIA

4

Product Type Correction Sourcing Payment Availability Provider

R1 load(FCR)

linear decrease of offtake when the frequency is between 49,9-

49,8Hz

NO Monthly

Reservationprice,

no activationremuneration

100% qhavailaibility

+ continuouslyautomatic activation

large Industrial TSO gridusers (via aggregator)

ICH(mFRR)

DROP TO

Target is fixed = Shedding Limit

YES, using

NominationYearly

Reservationprice +

activationremuneration

100% avgavailability

large Industrial TSO gridusers (via aggregator)

R3DP(mFRR)

DROP BYTarget is

variable = Baseline – fixed

capacity(deltaP)

NO(last qh as reference

value)

YearlyReservation

price, no activationremuneration

100% qhAvailability

industrial T/DSO grid usersand/or emergency

generators (via aggregator)

SDR2015-2016

DROP BY/TO @ELIA

YES, using

Nomination YearlyReservation

price + activation

remuneration

Remuneration based on available capacity

(No obligation to consume nopenalty when

available capacity is <Rref

industrial TSO grid users(via aggregator)

DROP BY only@DSO NO

industrial DSO grid users(via aggregator)


Overview current load products @ELIA (2)

5

Product Activation

parameters

Activation

Price

Volume

2015

Avg Reservation

Price in 2015

R1 load

half of the reserve must be deployed within 15’’

max reaction time for complete activation: 30 ‘’

must be able to be activated minimum 15’

NO

Avg 23MWTotal R1: 83MW

27MW in 2014

4,85€/MW per h

In 2014: 5-6€/MW per h

ICH

within 3’ max duration 2 - 4 - 8 hours max # : 12 - 4 - 4 /year minimum 24hours

between activations

YES261MW

Total R3: 661MW

Idem in 2014

1,41€/MW per h

Idem in 2014

R3DP

within 15’ max duration 2 hours max # : 40 /year minimum 12hours between

activations prequalification process

NO60MW

Total R3: 661MW

50MW in 2014

3,07€/MW per h

3,38€/MW per h in 2014

SDR2015-2016

YES SDR 2014-2015:

~100MW

NA

MW €/MW per h

jan/15 23 5,6

feb/15 21 5,8

mar/15 22 4,93

apr/15 23 4,17

may/15 26 3,79


The different product characteristics are taken into account when defining the constraints R3 portfolio.

R3 Production is available 100% of time and will be used (in combination with R2) to cover

imbalances, especially forced outages of units (loss of max ~440MW)

R3 DP will be used in addition to R3 Prod and R2 to cover most of imbalances due to outages but

also forecasting errors of renewables and load.

ICH will be mainly used to cover imbalances resulting from outages of nuclear units

Inter-TSO will be used as last resort activation in exceptional cases only

All products will be in competition respecting the following constraints:

• Min 300MW R3 Production

• Min 470MW R3 Production + R3 DP (corresponding to max 300MW ICH)

The proposed limits for R3 products allow Elia to ensure a secure operation of the network.

Determination mFRR (R3) portfolio in 2016

6Febeliec, 15/6/2015 - Hans Vandenbroucke

As European trends is to move towards short term sourcing and this could increase liquidity in the

balancing market, the goal is to move to short term sourcing for balancing products in the next

years.

After consultation of the market, Elia will start with partial monthly sourcing in 2016:

Volumes contracted in the yearly tendering = 700MW

Minimum 300MW R3 Prod

Minimum 400MW R3 Prod + R3DP

Volumes contracted in the monthly tendering = 70MW

Full competition between R3 Production and R3 Dynamic Profile

R3 2016: yearly & monthly auctions


R3DP

- Capping (100MW) removed

- Cap # providers/volume removed

- Submetering (TSO and DSO Delivery Points)

- Binding Bidding Obligations as part of General

Framework Agreement

Evolutions for 2016 : R3DP & ICH

Febeliec, 15/6/2015 - Hans Vandenbroucke 8

ICH:

- Workshop planned on 24/6

- Binding Bidding Obligations as

part of ICH-Contract

Eligibility - SDR: introduction of 3 new „segments“:

• SDR DSO: access points to the distribution grid

• SDR Submetering : delivery point within the installations of GU connected to ELIA grid

• SDR CDS: delivery point within a CDS connected to ELIA grid

Evolution of Certification process for SDR in order to better valorize flexibility:

• Elia calculates the maximum power that can be contracted (Rref, and not anymore the candidate)

• Valorization of “usefull” consumption even when lower than Rref

• Minimum Availability rate reduced from 85% to 80%

Product design

Choice among DROP TO and DROP BY (for SDR DSO only DROP BY)

No correction of BRPs perimeter for 3 new segments

Baseline methodology developed in order to verify the activation

of SDR for 3 new segments (for SDR TSO baseline = Nomination )

Additional limit on the #hours of activations : max 60h per sliding

window of 30 days

Tender Design: Selection of offers

Total Cost (based on reservation & activation prices) will differ depending on final decision on volumes( 30/6)

o 20 activations/130 hours if volume ≥ 1500MW

o 4 activations/13 hours if volume <1500MW

Evolutions for SDR 2015 - 2016


Challenges ahead…


Evolution to short term sourcing of reserve products

How to develop effective DSR participation while preserving an efficient market?

Throughout Europe different market models for DSR participation have

emerged, acknowledging the variety in prevailing market design both in

retail and wholesale markets.

However, there is a clear demand from stakeholders to provide a stable

enduring market model.

There is a push by European and national policy makers towards a market

model facilitating DSR-participation.

Elia has already contributed to include direct DSR-participation in its product

portfolio by developing specific products. This has led to a specific

product design build on a consensus with market actors, including CREG.

What are the criteria to participate in the wholesale energy market and what are

the implications for the BRP concept as a whole?

Focus on participation of load via Standard Products but…

ICH/R3DP is not a standard product given limited # activations and avg availability (ICH)

Qualification as a specific product? Strict criteria applicable:

1. only possible for flex that cannot partake to balancing market via normal standard

products

2. CREG needs to assess this on a yearly basis

3. European reporting to regulatory authorities every 2 years on the costs and benefits, and

the possible inefficiencies and distortions of having Specific Products in terms of

competition and market fragmentation

4. By default all specific reserve products should be shared on a Common Merit Order (and

hence can be activated by other TSOs if their activation price is cheaper than other bids)

unless other TSOs of the CoBA agree that these bids can be set a s unavailable for

activation by other TSOs = unshared bids.

Standardization/simplification of ELIA product portfolio

Challenges ahead… (2)


Network Code on Balancing

Many thanks for your attention!

ELIA SYSTEM OPERATOR

Boulevard de l'Empereur 20

1000 Brussels

+32 2 546 70 11

info@ elia.be

www.elia.be

An Elia Group company

Hans Vandenbroucke

Brussels, 15/6/2015

Documents

Overview of current services from DSR and future challenges Vandenbroucke_Elia.pdf · Overview of current services from DSR and future challenges Febeliec, 15/6/2015 ... The different