Transcript
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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]


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