Putting Science into Standards: Power-to-Hydrogen and HCNG … · 2016-06-03 · HCNG (Hydrogen &...
Transcript of Putting Science into Standards: Power-to-Hydrogen and HCNG … · 2016-06-03 · HCNG (Hydrogen &...
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1
Workshop
Putting Science into Standards: Power-to-Hydrogen and HCNG
Session 4: Standardization aspects for provision of ancillary services
Industry: John Newton Managing Director ITM Motive, ITM Power
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Contents
• Grid stability
• Grid Balancing / Ancillary Services
• Rapid Response
• The need for standardization / harmonisation
• Power-to-Gas: Grid Balancing tool
• Summary
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Requirement for grid balancing
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4
• Wind curtailment is a growing problem for TSOs
• Priority of dispatch: merit order effect (MOE)
• High curtailment payments available in the UK
• An increasing problem across Europe
• Problems start at 20% capacity; UK hit this threshold at the end of 2013
• Solved by energy storage: Power-to-Hydrogen and HCNG (Hydrogen & Compressed Natural Gas)
THE NEED FOR ENERGY STORAGE
RES curtailment increasingly common
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UK Monthly Data
Year Month Events Periods Payment MWh Ave
Price
2010
5 1 4 £12,699 70 181.41
6-9 - - - - -
10 2 17 £161,429 907 177.98
11-12 - - - - -
2011
1-3 - - - - -
4 8 85 £899,451 3,998 224.98
5 16 351 £2,612,189 15,077 173.26
6 3 57 £677,930 3,825 177.24
7 1 8 £21,545 145 148.59
8 6 28 £99,150 505 196.34
9 22 335 £4,968,896 19,520 254.55
10 23 317 £2,388,077 10,434 228.87
11 6 63 £339,589 1,698 199.99
12 4 60 £819,994 3,941 208.07
2012
1 12 172 £1,330,543 6,908 192.61
2 9 77 £272,043 1,649 164.95
3 9 103 £333,204 2,075 160.61
4 1 47 £330,951 2,062 160.53
5 2 18 £42,943 288 149.17
6 4 93 £439,001 2,514 174.59
7 1 10 £11,185 119 94.20
8 5 51 £282,454 2,381 118.64
9 24 208 £1,043,122 8,887 117.38
10 2 15 £38,042 404 94.21
11 15 237 £914,086 8,349 109.49
12 10 131 £876,757 9,847 89.04
• £5m spent in UK in Sept 2011 alone in aftermath of Hurricane Katia
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Grid Balancing/Ancillary Services
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POWER GRID OPERATION
Mechanical Inertia | Dynamic Coupling
• 3000 rpm | 50Hz
• Power | Frequency shedding
• Max 4% swing 48Hz|52Hz
• UK obligation average 50Hz in 1hour
Grid Balancing | Ancillary Services
• Used by utilities and TSO to improve reliability, increase economic efficiency & integrate RES
• Increase reliance on intermittent RES requires additional balancing resources to address any inconsistencies
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ENERGY STORAGE | CLEAN FUEL
BALANCING SUPPLY AND DEMAND IN THE UK:
• A total of £725m paid for balancing services in 2010-11
• Estimates in 2020 are: circa £1.9bn - £5.9bn p.a.
• Tariffs already operational in the UK: FCDM response <2 seconds
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Rapid Reserve
PRIMARY SECONDARY RESERVE
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Primary v’s secondary response
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ENERGY STORAGE | CLEAN FUEL
UK TSO (NATIONAL GRID): PAYMENT STRUCTURE
Four Grid Balancing Payment Tariffs:
• Short Term Operating Reserve (STOR)
• Fast Reserve
• Firm Frequency Response
• Frequency Control by Demand Management
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Uk Grid balancing Pricing
2010-11 2011-12 2012-13 2015-16 2020-21
STOR Unit price Availability £9.08/MW/h £9.13/MW/h
Utilisation £251.70/MWh £232.37/MWh £544/MWh £685/MWh
Total payments
Availability £74.8m £70.4m
Utilisation £19.4m £32.3m
Frequency Response
Unit Price Availability
Primary £3.72/MW/h £4.42/MW/h
Secondary £1.75/MW/h £1.51/MW/h
High £5.13/MW/h £5.80/MW/h
Total payments
Availability Mandatory £58.14m £68.02m
Commercial £80.9m £65.43m
Utilisation £3.95m £3.09m
BM Constraints Total payments £225m £102m
Balancing Services Total payments £725m £601m
National Grid: Short Term Operating Reserve: Annual Market Report (2010-11, 2011-12) National Grid: Procurement Guidelines Report (2011-12, 2012-13) National Grid: Operating the Electricity Transmission Networks in 2020 (2011)
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Grid balancing & Ancillary services • Standardization
• Harmonisation
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Grid Balancing | Ancillary Services | Demand Response
• Efficient balancing markets ensure security of supply at least cost and can deliver environmental benefits: reduce back-up generation, support RES implementation
• Ancillary services address short-term imbalances in electricity markets by dispatching resources within seconds or minutes of an unacceptable imbalance:
• Frequency control: primary, secondary, tertiary
• Voltage support / Reactive power
• Compensation of active power losses
• Demand response can act as an ancillary service that responds just as quickly as an ancillary power plant would, in under a second or within minutes, depending on the type of service required
• Demand response practitioners have a role to play in helping to balance the system on a short-term basis
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Grid Balancing
• The European Commission has stated strong support for Demand Response
• Energy Efficient Directive (Art. 15.8) requires that:
“Member States shall promote access to and participation of Demand Response in balancing services and other systems services markets inter alia by requiring national regulatory authorities […] in close cooperation with demand service providers and consumers, to define technical modalities for participation in these markets”
• Fewer than 5 of the EU 27 member States have created regulatory and contractual structures that support aggregated Demand Response
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Demand response market development
Source: Smart Energy Demand Coalition http://sedc-coalition.eu/
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Harmonisation of ancillary services
• ENTSOE: European Network of Transmission System Operators for Electricity
• Network Code establishes common rules
for Electricity Balancing including the establishment of common principles for procurement and settlement of Frequency Containment Reserves, Frequency Restoration Reserves and Replacement Reserves and common methodology for the activation of Frequency Restoration Reserves and Replacement Reserves
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Power To Gas
• Grid Balancing Tool
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EU Hydrogen Limits for Injection into the HP Gas Grid • Covered by a range of local laws and EU Directives
• Note: interpretation of these rules is complex
Limit falls to 2% if there is a
CNG station downstream
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UK opportunity: Hydrogen fraction v’s excess wind levels • Capturing 2.8 TWh p.a. of excess wind (i.e. 4% of 2020 output)
• Requiring 978MW of electrolysis at 30% utilisation
• Results in average national hydrogen content of 0.5%, reducing carbon footprint by 0.2%
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Excess wind (TWh pa)
725 TWh p.a. natural gas consumption, 30 GW wind capacity (2020)
Hydrogen fraction
Curtailment
Source: ITM Power plc
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ENERGY STORAGE | CLEAN FUEL
Value to the Power Grid
•Avoided wind curtailment
•Avoided infrastructure upgrades
•Reduced reserve power
•Reduce CO2 from open cycle GTs
•Absorbing reactive power
Value to the Gas Grid
•Decarbonising gas
•Providing renewable heat
•Reducing GHG emissions from gas transportation
Value to the Economy
•Reducing fuel imports
• Improved energy security
•Creating jobs in manufacturing
• Value to the power grid / TSO
• Value to the gas grid
• Value to the economy
POWER-TO-GAS: ELEMENTS OF VALUE
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Summary:
• Established and growing need for Grid Balancing due to implementation of RES
• Grid Balancing / Ancillary Services / Demand Response markets starting to emerge in EU
• Standardization & harmonisation required
• Power-to-Gas is an ideal tool for Grid Balancing
• What next steps are required?