Laboratory School of Electrical Computer Engineering...

Smart Grid and European Energy Policyp gy y

Anastasios G. BakirtzisPower Systems Laboratory

School of Electrical & Computer EngineeringAristotle University of Thessaloniki GreeceAristotle University of Thessaloniki, Greece

1

Source: National Geographic

Symposium on Telecommunication, Energy, Environment & Development, Thessaloniki, Nov. 25, 2010

A. G. Bakirtzis “Smart Grid and the European Energy Policy”

Presentation Overview

European Energy Strategy

ese tat o O e e

European Energy Strategy

Electricity Markets

Renewable Integration Challenges

Smart Grid

ConclusionConclusion

• Introduction • Electricity Market Deregulation History • Electricity Market Objectives & Models

• Future Challenges • Effects of RES Integration ‐ Smart Grids • ConclusionsSymposium on Telecommunication, Energy, Environment & Development, Thessaloniki, Nov. 25, 2010 2/20


European Energy Strategyu opea e gy St ategyCommission Green Paper of 8 March 2006

• To actively combat climate change by promoting renewable energy sources and energy efficiency

Sustainabilityand energy efficiency

• To improve the efficiency of the European energy grid by creating a truly competitive internal energy market

Competitivenesscompetitive internal energy market

• To better coordinate the EU’s supply of and demand for energy within an international context

Security of Supply




Electricity Marketsect c ty a ets

Power Power Power

Retail Supply

UnbundlingPower

GenerationPower

TransmissionPower

Distribution

Regulatory

Competitive ServicesMarket System Distribution

g yAuthority

Services

Regulated Services

Operatory

Operator Operator

Generators ConsumersSuppliersTraders



Generators ConsumersSuppliersTraders


Electricity Marketsect c ty a etsProducts and Services Unbundling

Energy

Generation Capacity

Transport Capacity

Ancillary Services

R (S d T ti S i i & N S i i )Reserves (Secondary, Tertiary Spinning & Non‐Spinning)

Voltage support

Black Start Capability




Electricity Marketsect c ty a etsPower Pool

(C t li d M k t)Bilateral Contracts(D t li d M k t)

Market Design

Generator Generator Generator Generator Generator Generator

(Centralized Market) (Decentralized Market)

VoluntaryPowerPower

BilateralContracts

PowerExchangePool

Supplier/ Consumer

Supplier/ Consumer

Supplier/ Consumer

Supplier/ Consumer

Supplier/ Consumer

Supplier/ Consumer

• Britain (until 2001), California (new), Chile, Argentina, Colombia, Korea, GreecePJM (Bif t d)

• Britain (since 2001), California (Old),Scandinavian, Netherlands, France, Germany, Poland, Cyprus, Australia



• PJM (Bifurcated) Ge a y, o a d, Cyp us, ust a a


Electricity Markets

Demand Function

Price[€/MWh]

ect c ty a etsPrice Formation

Demand FunctionSupply Function3000

SMP 150

100

5060

25

Quantity4 000 11.0008.000



Cleared Volume [MWh]Quantity[MWh]

4.000 11.0008.000


Electricity Marketsect c ty a etsMarkets Time‐line

Long‐term/ Mid‐term(M years to N days ahead) Day D‐1 Days D‐1 / D Real Time

Uncoordinated Trading(Bilateral Contracts)

Real‐Time Market(Centralized Control)

Day‐Ahead Market

Intra‐DayMarket

Hedge against price volatility

Supply / Demand Balance

Power Exchange– Simple, transparent

Power Pool– Co‐optimization of Energy, A/S, Transmission (LMP)p , p

– Ignores unit‐commitment & network– No side paymentsSelf scheduling of generators

Co optimization of Energy, A/S, Transmission (LMP)– Centralized Security Constrained Unit Commitment– “Make‐whole” side payments



– Self scheduling of generators


Large RES Integration Challengesa ge S teg at o C a e gesCharacteristics of intermittent renewable generation (wind, solar)

Uncertain (Unpredictable )Uncertain (Unpredictable )Variable (Intermittent )Subsidized (feed‐in tariffs, quota mechanisms, tax credits)Non‐Dispatchable / Dispatch Priority (zero marginal cost) Far from Load Centers (transmission reinforcement, loop flows)Energy Resource, not Capacity ResourceAggregation Benefit: Aggregation smoothes out total RES production

Effects on marketLoad net RES generation uncertain and highly variable (no regular pattern)Increased needs for Ancillary ServicesIncreased needs for Ancillary ServicesElectricity spot prices lower on average and highly volatile (negative prices)

Incentivize investment in flexible generation, storage and demand



g , gresponse


Large RES Integration Challengesa ge S teg at o C a e ges

80,0

Day‐Ahead SMPs for the Spanish SystemZero Prices

30,040,050,060,070,0

010,020,0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

2010 ‐ 1 March ‐Monday 2008 ‐ 3 march ‐Monday

40

ERCOT Balancing Market Prices ‐ 5 March 2009

0

10

20

30

40

‐40

‐30

‐20

‐10

0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Negative Prices



North Zone Price South Zone Price West Zone Price Houston Zone Price


Large RES Integration Challengesa ge S teg at o C a e ges

Market Requirements in order to incorporate large amounts of RESMarket Requirements in order to incorporate large amounts of RESMarket Integration (to take advantage of the RES aggregation benefit)Regional Transmission Systemg yDemand responseStorageEnhancement of intra‐day and real‐time markets

Smart GridProvides the infrastructure for all above




What is a Smart Grid?at s a S a t G d?A Smart Grid is an electricity network that can intelligentlyintegrate the actions of all users connected to it - generators,

o e d tho e th t do both i o de to effi ie tlconsumers and those that do both – in order to efficientlydeliver sustainable, economic and secure electricity supplies

A Smart Grid employs innovative products and services together withA Smart Grid employs innovative products and services together withintelligent monitoring, control, communication, and self-healingtechnologies to:

better facilitate the connection and operation of generators of all sizes andtechnologies;

ll t l t i ti i i th ti f th t allow consumers to play a part in optimizing the operation of the system;

provide consumers with greater information and choice of supply;

significantly reduce the environmental impact of the whole electricity supplysignificantly reduce the environmental impact of the whole electricity supplysystem;

deliver enhanced levels of reliability and security of supply.




Smart Grid

Transmission Distribution Customer

S a t G d

Transmission

• HVDC, FACTS• Substation

Distribution

• Distribution Automation

Customer

• Smart Buildings• Smart Meters• Substation

Automation• PhasorM t U it

Automation• DMS• Active Distribution N t k

• Smart Meters• Smart Appliances• PEVs

Measurement Units (PMUs)

• EMS, SCADA

Networks• Automatic Fault Detection

• Distributed Resources (G & S)

• Demand Response• Wide‐Area Monitoring (WAM)

• Wide‐Area

• Loss Minimization• Micro‐Grids• Virtual Power Plants

p• Real‐Time Pricing• Active Customers• Retail CompetitionProtection (WAP)

• Condition‐Based Maintenance (CBM)

tua o e a ts(VPPs)

• Retail Competition



( )


Smart GridEnd user real timeInformation &Multi‐directional

S a t G d

Seamless integration

Information & participation

Multi directional ‘flows’

Central & dispersedi t lli

Seamless integrationof new applications Plug & Play

intelligence

Smart materialsCentral & dispersed sources

Smart materials and power electronics

‘automatic’ payments



along the value chain


Demand Response e a d espo seDemand Response Curtailment of electrical loads at peak times

Demand Dispatch Aggregate and control individual loads on demand

Di h bl L d [L L ]

Smart Metering, Smart Appliances (e.g. smart dish‐washer)

Dispatchable Loads: [Lmin, Lmax]

Load Aggregator

Follow generation (e.g. wind)Provide ancillary services (regulation)Loads Provide ancillary services (regulation)Respond quickly to locally sensed changes in grid frequency

Loads




Electric Vehiclesect c e c es

Can be aggregated to provide a dispatchable load resource

Smart charging

Aggregator has control of the vehicle while charging

Methods for optimizing the charging processMethods for optimizing the charging process

Provision of ancillary services (e.g. regulation)




Distributed Generation and Micro‐Gridsst buted Ge e at o a d c o G ds

Micro‐Grid (μG)Micro Grid (μG)Distributed Generation (DG)

Wind Turbines PV Micro Hydro Micro Turbines Fuel CellsWind Turbines, PV, Micro Hydro, Micro Turbines, Fuel Cells, …

Distributed Storage (DS)Demand response (DR)Demand response (DR)

Virtual Power Plants (VPPs)Virtual Power Plants (VPPs)Aggregator of DG, storage and DSM




Conclusion

Smart Grids provide the necessary

Co c us o

Smart Grids provide the necessary infrastructure for meeting the European g pEnergy strategy goals:

L R bl (RES) I t tiLarge Renewable (RES) Integration

Creation of the Internal Energy Market

Operational Security of Supply




http://smartgrid.ieee.org/



Thank you for your attention!


European Energy Strategy ‐ Competitivenessu opea e gy St ategy Co pet t e ess• Directive 96/92/EC•Gradual and partial opening of the electricity markets of Member States, minimum

1st Energy Package

p p g y ,harmonization•Thresholds for market opening, Introduction of Eligible Customers•National liberalized markets emerged instead of one internal electricity market

• Directive 2003/54/EC•Introduces full market opening, One level playing field for all statesN h h ld t li ibl f J l 2004 All t li ibl f J l 20072nd Energy

Package

•Non‐household customers eligible from July 2004 ‐ All customers eligible from July 2007• Regulation (EC) No 1228/2003•Cross‐border transmission (congestion management, allocation, charges)

• Directive 2009/72/EC•Improvement & integration of competitive electricity markets in EU•Unbundling of transmission systems & transmission system operators (TSOs)

3rd Energy Package

g y y p• Regulations (EC) No 713/2009, No 714/2009•Agency for the Cooperation of Energy Regulators (ACER), European Network for Transmission System Operators for Electricity (ENTSO‐E) by 3 March 2011




European Energy Strategy ‐ Sustainabilityu opea e gy St ategy Susta ab ty20/20/20 EU Target

EU Renewable targets by 2020 (Directive 2009/28/EC)20% reduction in greenhouse gas emissions (wrt 1990 levels)g g ( )20% reduction in primary energy use – energy efficiency20% of EU total energy consumption to come from RES

Expected share of RES in electricity production ≈ 30 – 35%

Change in Future Generation MixIn favor of RES (major part intermittent)Against “dirty” coal base‐load plant

Partially replaced by nuclear and clean coal technologies (CCS)




Electricity Markets of the Futureect c ty a ets o t e utu e

Internal Electricity Market

Market IntegrationEuropean Target: te a ect c ty a et

NorthernCreation of the Internal Electricity Market (IEM)

Intermediate Step: FUI

(France, UK & Ireland)Baltic

pEuropean Countries grouped in 7 Regions(9th ‐10th Florence forum, 2002‐2003)

Central West

Central East

3rd Energy Package, Art. 6 (June 2009) → New impetus to foster regional cooperation

South WestSouth EastOil‐spread model:

Neighboring regions and countries link‐up d ll t th CWE N di k t

C t l S thA pan European market will emerge

gradually to the CWE‐Nordic core market



Central SouthA pan‐European market will emerge


Electricity Markets of the Futureect c ty a ets o t e utu eRoadmap to European Market Integration

The Oil‐spread Model

400 TWh≈ 450 TWh

2010

2011

The Oil spread Model

25 TWh400 TWh

2011

2012

600 TWh

40 TWh

150 TWh25 TWh

2013

2014

650 TWh

100 TWh

1250 TWh≈ 2500 TWh≈ 3000 TWh≈ 3100 TWh≈ 3300 TWh≈ 3500 TWh

55 TWh

2015

onwards

300 TWh 350 TWh

55 TWh

≈ 200 TWh



Laboratory School of Electrical Computer Engineering...

Documents

Transcript of Laboratory School of Electrical Computer Engineering...