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  • Smart TSO-DSO interaction schemes, market architectures and ICT Solutions for the integration of

    ancillary services from demand side management and distributed generation

    Ancillary service provision by RES and DSM

    connected at distribution level in the future

    power system

    D1.1

    Authors:

    Julia Merino (TECNALIA), Inés Gómez (TECNALIA), Elena Turienzo (TECNALIA), Carlos Madina

    (TECNALIA), Iñigo Cobelo (TECNALIA), Andrei Morch (SINTEF), Hanne Saele (SINTEF), Koen Verpoorten

    (KU Leuven/EnergyVille), Enrique Rivero Puente (VITO/EnergyVille), Seppo Häninnen (VTT), Pekka

    Koponen (VTT), Corentin Evens (VTT), Niina Helistö (VTT), Alessandro Zani (RSE) and Dario Siface (RSE).

    Distribution Level PU

    Responsible Partner TECNALIA

    Checked by WP leader Date: 21/12/2016 – Daan Six (VITO)

    Verified by the appointed

    Reviewers

    Date: 12/12/2016 – Loui Algren (Energinet)

    Date: 14/12/2016 – Marco Rossi (RSE)

    Approved by Project

    Coordinator

    Date: 21/12/2016 – Gianluigi Migliavacca (RSE)

    This project has received funding from the European Union’s

    Horizon 2020 research and innovation programme under

    grant agreement No 691405

  • Issue Record

    Planned delivery date 30/09/2016

    Actual date of delivery 21/12/2016

    Status and version Final

    Version Date Author(s) Notes

    1.0 10/11/2016 TECNALIA/T1.1. partners First version for internal review

    1.1 13/12/2016 TECNALIA Reviewed version with comments from Loui Algren addressed

    1.2 20/12/2016 TECNALIA Reviewed version with comments from Marco Rossi addressed

  • Copyright 2016 SmartNetD1.1 - Ancillary service provision by RES and DSM connected at distribution level in the future power system

    Page 1

    About SmartNet

    The project SmartNet (http://smartnet-project.eu) aims at providing architectures for optimized interaction between TSOs and

    DSOs in managing the exchange of information for monitoring, acquiring and operating ancillary services (frequency

    control, frequency restoration, congestion management and voltage regulation) both at local and national level, taking into account

    the European context. Local needs for ancillary services in distribution systems should be able to co-exist with system needs for

    balancing and congestion management. Resources located in distribution systems, like demand side management and distributed

    generation, are supposed to participate to the provision of ancillary services both locally and for the entire power system in the

    context of competitive ancillary services markets.

    Within SmartNet, answers are sought for to the following questions:

    • Which ancillary services could be provided from distribution grid level to the whole power system?

    • How should the coordination between TSOs and DSOs be organized to optimize the processes of procurement and

    activation of flexibility by system operators?

    • How should the architectures of the real time markets (in particular the markets for frequency restoration and

    congestion management) be consequently revised?

    • What information has to be exchanged between system operators and how should the communication (ICT) be

    organized to guarantee observability and control of distributed generation, flexible demand and storage systems?

    The objective is to develop an ad hoc simulation platform able to model physical network, market and ICT in order to analyse

    three national cases (Italy, Denmark, Spain). Different TSO-DSO coordination schemes are compared with reference to three

    selected national cases (Italian, Danish, Spanish).

    The simulation platform is then scaled up to a full replica lab, where the performance of real controller devices is tested.

    In addition, three physical pilots are developed for the same national cases testing specific technological solutions regarding:

    • monitoring of generators in distribution networks while enabling them to participate to frequency and voltage

    regulation,

    • capability of flexible demand to provide ancillary services for the system (thermal inertia of indoor swimming pools,

    distributed storage of base stations for telecommunication).

    Partners

  • Copyright 2016 SmartNetD1.1 - Ancillary service provision by RES and DSM connected at distribution level in the future power system

    Page 2

    Table of Contents

    About SmartNet ....................................................................................................................................................................................... 1

    Table of Contents ..................................................................................................................................................................................... 2

    List of Abbreviations and Acronyms .............................................................................................................................................. 5

    Executive Summary ................................................................................................................................................................................ 7

    1 Introduction ........................................................................................................................................................................................ 11

    1.1 Scope of the document ......................................................................................................................................... 11

    1.2 Deliverable structure ............................................................................................................................................ 11

    2 Review of existing ancillary services and market structures ....................................................................................... 13

    2.1 Overview of ancillary services .......................................................................................................................... 13

    Ancillary services for frequency control ................................................................................................ 14 2.1.1

    Ancillary services for voltage control ...................................................................................................... 16 2.1.2

    Other ancillary services .................................................................................................................................. 18 2.1.3

    Comparative analysis among several EU-countries .......................................................................... 19 2.1.4

    2.2 Overview of electricity markets ....................................................................................................................... 24

    2.2.1 Market rules ........................................................................................................................................................ 26

    2.2.2 Electricity market – Denmark ..................................................................................................................... 26

    2.2.3 Electricity market – Italy ............................................................................................................................... 29

    2.2.4 Electricity market – Spain ............................................................................................................................. 33

    3 Identification of future needs of ancillary services ........................................................................................................... 37

    3.1 The SmartNet framework: expected trends in power systems up to 2030 .................................. 37

    3.1.1 Electricity generation mix ............................................................................................................................. 37

    3.1.2 Electricity consumption mix ........................................................................................................................ 38

    3.1.3 Energy storage ................................................................................................................................................... 41

    3.1.4 Inertia reduction and increase of frequency deviations .................................................................. 43

    3.1.5 Increased flexibility.......................................................................................................................................... 45

    3.1.6 Demand response ............................................................................................................................................. 46

    3.1.7 Enhancement of cross-border interconnections ................................................................................ 48

    3.2 SmartNet high-level scenario ............................................................................................................................ 51

    3.2.1 Introduction to scenario design ................................................................................................................. 51

    3.2.2 Generation of SmartNet high-level scenarios ...................................................................