Energy Cork - 3rd October 2018

John Young

DS3 - RES Integration and System Services

EirGrid – An All-Island Energy Company

EirGrid – An All-Island Energy Company

* Note: In Ireland ESB owns the transmission and distribution system

So why is Ireland relevant…?

* Based on analysis of National Renewable Action Plans (NREAPs) as submitted by Member States

EirGrid is seeing the impacts first…

* Based on analysis of National Renewable

Energy Action Plans (NREAPs) as submitted by EU

Member States

which if not solved lead to operational limits…

Wind Curtailment LevelsMaximum Allowable Real Time Wind Level

SNSP = Wind + Imports

Demand + Exports

Change in System Performance

which is incentivised by

System Services

Changes in System Policies

which leads to increases in

renewables

DS3 delivers transformational change

System Tools enabling operational change in the Control Centre

Electricity Industry in Transition…

Renewable Integration

Demand Side Management

Consumer Engagement

Electrification of Vehicles

What is Demand Side Management

System Operator

Demand Side Unit

Dispatch Instruction

Dispatch notification

System Benefit

• Greater

accommodation of

variable RES

• Enhanced capacity

adequacy

• Avoided / deferred

network investment

Industry Customer

Dispatch notification

Reduces Load

ConsumerBenefit

• Reduced bills

• Greater control over and

engagement with the

energy they produce

and consume

The Evolution of Demand Side Management in Ireland…

Medium-scale DSU, increased number of demand sites & site complexity

Demand Side Units (DSU), low number of demand sites

Large-scale Demand Side participation across all demand, including residential level

…In Numbers….

250

300

350

400

450

DS

U M

W C

ap

aci

ty -

All

Isl

an

d

DSU MW Capacity - All Island

0

50

100

150

200

2012 2013 2014 2015 2016 2017

DS

U M

W C

ap

aci

ty

• National & European Policy signalling changes

• Energy Efficiency Directive

• Energy White Paper

….Expecting big change in domestic capabilities…

Technology Advancements Future Energy Policy

Electricity Industry in Transition…

Consumer Engagement

…So we are trialing residential services

Demand Side Management

Changing the Market Design for investment

• Financial Mix will move to

higher capital lower variable

cost technologies

• Incentivise performance to

Ancillary Services

Capacity Payments

System Services

Capacity Payments

Ca

pit

al

cost

s +

re

turn

• Incentivise performance to

obtain the plant mix that

matches the system

requirements and achieves

the policy objectives

Energy Payments

Energy Payments

Va

ria

ble

Co

stC

ap

ita

l co

sts

+ r

etu

rn

Today Tomorrow

time

…with new products to meet system scarcities

• Synchronous Inertial Response

• Fast Frequency Response

• Fast Post-Fault Active Power

Recovery

• Ramping Margin

time

…and not just for frequency

• Dynamic Reactive Power • Steady-state Reactive Power

• 14 System Services designed to enable system with high levels of renewables integration

• Provided by existing Service Providers 50

100

150

200

250

55

60

65

70

75

Sys

tem

Se

rvic

es

(€

m)

SN

SP

System Services Expenditure

Service Providers&

new Service Providers -Storage-DSM-new technologies

0

50

50

55

2016-2017 2017-2018 2018-2019 2019-2020

System Services Cap SNSP

Increasing SNSP requires an increase in

the volume of System Services

System Services Procurement

Qualification System

Procurement Process

Service

Provider X

Service

Provider A

Service

Provider G

Service Service Service Service Service Service Service

Qualification System

Service Service Service Service Service Service Service Service Service Gate

SONI

TSO

Service

Provider

B

Service

Provider

B

Service

Provider

A

Service

Provider

C

Service

Provider

C

Service

Provider

D

Service

Provider

D

Service

Provider

A

Service

Provider

B

Service

Provider

B

Service

Provider

C

Service

Provider

C

Service

Provider

D

Service

Provider

D

Service

Provider

E

Service

Provider

E

Gate

refresh

Providing

contract

Providing

Unit E

contract

SSRP

RM1

SSRP

RM1

Providing

contract

Providing

Unit B

contract

POR

SOR

TOR1

TOR2

POR

SOR

TOR1

TOR2EirGrid

TSO

POR

SOR

TOR1

TOR2

FFR

POR

SOR

TOR1

TOR2

FFR

Phase 2

Base Tariff Rates

Service Name Unit of

Payment

Recommend

Rate

€

Synchronous Inertial Response (SIR) MWs2h 0.0050

Primary Operating Reserve (POR) MWh 3.24

Secondary Operating Reserve (SOR) MWh 1.96

Tertiary Operating Reserve (TOR1) MWh 1.55

Tertiary Operating Reserve (TOR2) MWh 1.24

Replacement Reserve – Synchronised (RRS) MWh 0.25

Replacement Reserve – Desynchronised (RRD) MWh 0.56

19

Ramping Margin 1 (RM1) MWh 0.12

Ramping Margin 3 (RM3) MWh 0.18

Ramping Margin 8 (RM8) MWh 0.16

Steady State Reactive Power (SSRP) MVArh 0.23

Fast Frequency Response (FFR) MWh 2.16

Fast Post Fault Active Power Recovery (FPFAPR) MWh 0.15

Dynamic Reactive Response (DRR) MWh 0.04

Payment based on availability

TariffTariff

ScalarsScalars

x = PaymentPaymentProductProduct

PerformancePerformance

x Available

Volume

Payment Structure

Volume

ScarcityScarcity

DS3 – Focus on services at times of scarcity

DS3 – Focus on reliable performance

Safe, Secure Operation up to 65% SNSP with wind generation in excess of 4 GW

What has DS3 delivered for us so far?

SNSP = Wind + Imports

Demand + Exports

But have we really been tested?

Hurricane Ophelia

• System demand similar to a Christmas Day profile

• Pre-emptive wind curtailment improved system stability & security

• Multiple 110 kV faults but no system stability issues

Wind generation helped stabilise system

EirGrid Conference

• Conference Theme: Innovative partnerships for a brighter tomorrow

• Date: 16th October’18

• Venue: Páirc Uí Chaoimh.• Venue: Páirc Uí Chaoimh.

• Link : https://www.eventbrite.ie/e/eirgrid-group-conference-innovative-partnerships-for-a-brighter-tomorrow-tickets-48199914241

Thank You