ZJU Demonstration of Friendly Interactive Grid Under the Background of Electricity Market Reform in China Hongxun Hui, Xing Jiang, Yi Ding*, Yonghua Song College of Electrical Engineering, Zhejiang University Li Guo State Grid Jiangsu Electric Power Company June 2017 Zhejiang University College of Electrical Engineering
ZJU ZJU CONTENTS 1 Introduction 2 Pilot policies of demand response in China 3 Demonstration of friendly interactive grid 4 Conclusions and discussions 2 College of Electrical Engineering, Zhejiang University
ZJU Background Two big challenges: Energy consumption, Environmental pollution Fig.1. Growing increase of Energy Consumption [1] Fig.2 Environmental Pollution [1] Worldwide, B. P. "BP Energy Outlook 2035." (2015). 3 College of Electrical Engineering, Zhejiang University
ZJU The increasing share of renewables in the power system Fig.3 Renewable Energies (e.g. wind & photovoltaic) Extra pressure of power system secure operation: Less predictable and controllable; High fluctuations and intermittence. 4 College of Electrical Engineering, Zhejiang University
ZJU ZJU Demand Response Residual demand Overflow Fig.4 EcoGrid EU-assumed wind power capacity in 2025 [2] [2] Ding Y, Nyeng P, Ostergaard J, et al. Ecogrid EU-a large scale smart grids demonstration of real time market- based integration of numerous small DER and DR Fig.5 Smart house Fig.6 Conventional generating units 5 College of Electrical Engineering, Zhejiang University
ZJU ZJU CONTENTS 1 Introduction 2 Pilot policies of demand response in China 3 Demonstration of friendly interactive grid 4 Conclusions and discussions 6 College of Electrical Engineering, Zhejiang University
ZJU The business model of demand response in Jiangsu Province Maintaining the electric power system s operation and No income in the market. Electricity Government providing technical platform Making price policies Company for demand response providers Market Operation Market Management Spike Pricing Policy Response Loads Capital Pool Government Subsidy Income specific funds Benefits Demand Response Providers Fig.7 Business model of demand response in Jiangsu Province The business model includes three entities: Government, Electricity • Company and Demand Response Providers (DRP). 7 College of Electrical Engineering, Zhejiang University
ZJU The spike pricing policy Yuan/kWh Peak Peak Electricity Price Most of the provinces in • Flat Flat China. Valley 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 Time/h (1) Original peak-valley price policy Spike The spike price is based Yuan/kWh • 0.1 Yuan/kWh on the original peak valley price. It increases 0.1 Electricity Price Yuan/kWh for the large industrial customers. The spike price policy will • be carried out when the outside temperature is 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 Time/h (2) Pilot spike price policy over 35 degrees Celsius in summer (July and August). Fig.8 Electricity price policy in Jiangsu Province 8 College of Electrical Engineering, Zhejiang University
ZJU The Effect of Demand Response Around 56,000 large industrial customers were implemented the spike price • policy. Compared with the original peak-valley price policy, the income of electricity • increase 32 million Yuan and 45.51 million Yuan in 2015 and 2016, respectively. All the increased income were used to subsidize the customers or aggregators • who successfully implemented DR. 9 College of Electrical Engineering, Zhejiang University
ZJU ZJU CONTENTS 1 Introduction 2 Pilot policies of demand response 3 Demonstration of friendly interactive grid 4 Conclusions and discussions 10 College of Electrical Engineering, Zhejiang University
ZJU Demonstration —— Friendly Interactive System of Supply and Demand (FISSD) It is approved and supported by Ministry of Science and Technology of the People’s Republic of China .(2016-2020) Demonstration area in Suzhou Demonstration area in Changzhou Administrative region: 78 km 2 Administrative region: 182 km 2 Resident population: 780,000 Resident population: 1,600,000 Large industry customers ： 1420 Large industry customers ： 590 Commercial customers ： 32437 Commercial customers ： 21755 Residential customers: 352,600 Residential customers: 530,000 Load aggregators: 5 Load aggregators: 3 11 College of Electrical Engineering, Zhejiang University
ZJU Demonstration —— Friendly Interactive System of Supply and Demand (FISSD) It is approved and supported by Ministry of Science and Technology of the People’s Republic of China .(2016-2020) Large industrial customers: more than 1,000 enterprises. 10000 9500 Case 1 Case 2 9000 Operating power (kW) 8500 Commercial customers: 8000 Interaction platform 250 malls, 300 hotels, 150 7500 7000 office buildings and so on. 6500 6000 5500 5000 0 2 4 6 8 10 12 14 16 18 20 22 24 Residential customers: Time (hour) 110,000 houses and 22 Two main objectives: aggregators Energy management system (1) Peak-valley difference of loads decrease by 5.8%. Distributed generations: wind power and (2) Comprehensive energy photovoltaic power Income Subsidy consumption of residential customers decrease by 5.5%. System benefit Charging stations: covering 30,000 houses Business model 12 College of Electrical Engineering, Zhejiang University
ZJU Demonstration —— Friendly Interactive System of Supply and Demand (FISSD) It is approved and supported by Ministry of Science and Technology of the People’s Republic of China .(2016-2020) Large industrial customers: more than 1,000 enterprises. 10000 9500 Case 1 Case 2 9000 Operating power (kW) 8500 Commercial customers: 8000 Interaction platform 250 malls, 300 hotels, 150 7500 7000 office buildings and so on. 6500 6000 5500 5000 0 2 4 6 8 10 12 14 16 18 20 22 24 Residential customers: Time (hour) 110,000 houses and 22 Two main objectives: aggregators Energy management system (1) Peak-valley difference of loads decrease by 5.8%. Distributed generations: wind power and (2) Comprehensive energy photovoltaic power Income Subsidy consumption of residential customers decrease by 5.5%. System benefit Charging stations: covering 30,000 houses Business model 13 College of Electrical Engineering, Zhejiang University
ZJU Demonstration —— Friendly Interactive System of Supply and Demand (FISSD) It is approved and supported by Ministry of Science and Technology of the People’s Republic of China .(2016-2020) Large industrial customers: more than 1,000 enterprises. 10000 9500 Case 1 Case 2 9000 Operating power (kW) 8500 Commercial customers: 8000 Interaction platform 250 malls, 300 hotels, 150 7500 7000 office buildings and so on. 6500 6000 5500 5000 0 2 4 6 8 10 12 14 16 18 20 22 24 Residential customers: Time (hour) 110,000 houses and 22 Two main objectives: aggregators Energy management system (1) Peak-valley difference of loads decrease by 5.8%. Distributed generations: wind power and (2) Comprehensive energy photovoltaic power Income Subsidy consumption of residential customers decrease by 5.5%. System benefit Charging stations: covering 30,000 houses Business model 14 College of Electrical Engineering, Zhejiang University
ZJU ZJU CONTENTS 1 Introduction 2 Pilot policies of demand response 3 Demonstration of friendly interactive grid 4 Conclusions and discussions 15 College of Electrical Engineering, Zhejiang University
ZJU Conclusions and discussions • Challenges: – The future power system will be more fluctuating due to the high penetration of RES. • The pilot policy of demand response: – The reduction of peak-valley difference can reach 18.47% and the average response capacity of residential customers can reach 590W. • Demonstration —— Friendly Interactive System of Supply and Demand (FISSD): – In order to do further study on DR, a demonstration project was implemented in Suzhou and Changzhou. – The FISSD will be one of the largest DR project in the world and make significant progress toward DR’s study. – The demand response will make greater contributions to the future power system. 16 College of Electrical Engineering, Zhejiang University
ZJU Thank you for your attention! Zhejiang University College of Electrical Engineering
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