SmartNet project : TSO-DSO interaction architectures to ... The SmartNet project 4 architectures for

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  • This project has received funding from the European Union’s Horizon 2020 research 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

  • 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

    2

  • 3

    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

  • The SmartNet project

    4

    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:

  • Overall project layout

    5

  • 6

    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

  • TSO-DSO coordination schemes

    7

    5 possible coordination schemes TSOs & DSOs for AS by distributed flexibility resources A. 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

  • 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)

    8

  • 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

    9

  • 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

    10

  • 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

    11

  • 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

    12

  • Summary coordination schemes

    13

    Coordination scheme Role of the DSO Market organization(market operator) Allocation principle of flexibility

    from the distribution grid

    Centralized AS market model Limited to possible process of

    prequalification Common 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

  • 14

    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

    G L

    LV

    G L

    Distribution grid 2

    Transmission grid

  • 15

    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

  • 16

    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

  • 17

    Market layer

    Physical layer

    Bidding and dispatching layer

    Consideration of different markets

    How the simulator works How 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

  • 18

    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

  • 19

    Market layer

    Physical layer

    Bidding and dispatching layer

    How the simulator works How 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

  • 20

    Market layer

    Physical layer

    Bidding and dispatching layer