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Gerard del Rosario Catalonia Institute for Energy Research (IREC) DAY 1: SMART GRIDS TABLE 2: REGULATORY CHALLENGES AND BUSINESS OPPORTUNITIES ASSOCIATED WITH THE DIGITIZATION PROCESS, DEMAND SIDE RESPONSE (DSR) AND RES INTEGRATION


  1. Gerard del Rosario Catalonia Institute for Energy Research (IREC) DAY 1: SMART GRIDS TABLE 2: REGULATORY CHALLENGES AND BUSINESS OPPORTUNITIES ASSOCIATED WITH THE DIGITIZATION PROCESS, DEMAND SIDE RESPONSE (DSR) AND RES INTEGRATION INTERNATIONAL SUMMER SCHOOL “SMART GRIDS AND SMART CITIES” Barcelona, 6-8 June 2017

  2. • The growing share of variable generation in Europe is increasing the need for flexibility in the electricity system. • In this context, aggregation offers the opportunity to exploit the flexibility potential of smaller customers connected to distribution networks. Map of Explicit Demand Response development in Europe 2017 (Source: SEDC)

  3. Aggregator: key enabler of flexibility from small customers FLEXIBILITY SERVICES FLEXIBILITY SERVICES FLEXIBILITY SERVICES AGGREGATOR PROSUMERS FLEXIBILITY SERVICES

  4. • Three possible market uses for the aggregator’s flexibility: Procurement of balancing services ( capacity ) and activation of 1. Balancing markets balancing energy by the TSO to balance demand and supply through the balancing energy market . 2. Constraints management Network constraints resolution in all timescales, maintaining reliability and quality of service at TSO and DSO levels. at transmission and Typical constraints refer to thermal ratings , voltage violations , fault distribution level levels and transient stability issues. Used by market players to meet their energy obligations 3. Portfolio optimization in the market at minimum costs by arbitrating between generation and demand response on all different time horizons. Real time Long term Day ahead Intra-day (grid planning and energy/capacity energy/capacity forward markets) markets markets

  5. Aggregator functionalities 1 Consumption Forecasting 5 The Commercial 3 Flexibility Forecast Tool Optimal Planning Tool Prosumers portfolio • Base Load Profile Simulates the behaviour of every • Modified Load Profile per request average consumer under different • Historical data • Optimal Incentive Policy per request price and volume signals . • Weather forecast • Market price Obtains the aggregated response for • Reliability of the clusters the whole clusters. Calculates the optimal incentive 2 Consumer Segmentation 4 Market forecasting and bidding policy in order to maximize the profits of the Commercial Aggregator. € Forecast the market price of sold and Divides the consumers Participates in the markets purchased electricity. to groups with similar consumption patterns Methodologies rely on statistical and financial analyses of the markets. Average consumer per cluster

  6. Aggregator concept and its interactions Market clearing Requests for Bilateral contracts Transmission System Other market flexibility activation Other market Other market Operator (TSO) participants participants participants Flexibility procurement for Market Purchase / balancing and transmission clearing Sale bids congestion management purposes Sale Purchase / flexibility TSO/DSO Balancing and Sale bids bids coordination for Congestion Commercial Commercial Wholesale Market flexibility validation Commercial Management Aggregator (CA) and activation Aggregator Aggregator flexibility market Market purposes clearing Flexibility procurement for distribution congestion management purposes Requests for Requests for flexibility activation flexibility (price and volume activation signals) Distribution System Consumers / Commercial Commercial Commercial Commercial Operator (DSO) Prosumers Aggregator Aggregator Aggregator Aggregator Flexibility activation validation request (when activation comes from TSO or third parties) Market clearing

  7. Day-ahead Aggregator algorithm interaction Market clearing Requests for Bilateral contracts Transmission System flexibility activation Other market Other market Other market Operator (TSO) participants participants participants Flexibility procurement for Market Purchase / balancing and transmission clearing Sale bids congestion management purposes Sale flexibility Purchase / TSO/DSO bids Balancing and Sale bids coordination for Congestion Commercial Commercial Wholesale Market flexibility validation Commercial Management Aggregator (CA) and activation Aggregator Aggregator flexibility market Market purposes Flexibility clearing Market Flexibility procurement for clearing distribution congestion management purposes Requests for Requests for flexibility activation flexibility (price and volume activation signals) Distribution System Consumers / Commercial Commercial Commercial Commercial Operator (DSO) Prosumers Aggregator Aggregator Aggregator Aggregator Flexibility activation validation request (when activation comes from TSO or third parties) Market clearing

  8. Real-time Aggregator algorithm interaction Market clearing Requests for Bilateral contracts Transmission System flexibility activation Other market Other market Other market Operator (TSO) participants participants participants Flexibility procurement for Market Purchase / balancing and transmission clearing Sale bids congestion management purposes Sale flexibility Purchase / TSO/DSO bids Balancing and Sale bids coordination for Congestion Commercial Commercial Wholesale Market flexibility validation Commercial Management Aggregator (CA) and activation Aggregator Aggregator flexibility market Market purposes Flexibility clearing Market Flexibility procurement for clearing distribution congestion management purposes Requests for Requests for flexibility activation flexibility (price and volume activation signals) Distribution System Consumers / Commercial Commercial Commercial Commercial Operator (DSO) Prosumers Aggregator Aggregator Aggregator Aggregator Flexibility activation validation request (when activation comes from TSO or third parties) Market clearing

  9. The research leading to these results has received funding from the European Union seventh framework program FP7-SMARTCITIES-2013 IDE4L project, under grant aggreement 608860. Goal: how does an Aggregator manage to allocate flexibility among DERs? Flexibility activation

  10. • Emulation of flexibility activation: • How does an Aggregator manage to allocate flexibility among DERs? • Challenge: make the most of performing DERs • DERs may fail in the delivery of flexibility to the power system  Some of them will under/over- perform • In case of under/over-performance of the aggregated flexibility, how can an Aggregator better adjust the energy delivered during the actual activation time slot?

  11. • For Aggregators  a better performance reduces economic losses caused by non-conformity with flexibility product specifications • For performing DERs  they keep being qualified for flexibility delivery and potentially may receive higher incomes from flexibility services • For DSOs  reliable demand side flexibility from aggregated customers adds to other existing flexibilities in the power system and enhances congestion management

  12. • 1: Order of flexibility activation • 2: Status request (baseline + available DSO flexibility) and operational status return • 3: Allocation of flexibility volume among 1 5 DERs proportional to their available amounts 2 3 7 • 4: DERs’ activation Aggregator • 5: Activation confirmation • 6: Energy measurements (request and return) 2 4 6 8 • 7: Modification of flexibility volume target for remaining activation period and re-allocation of set points among DERs DERs • 8: Sending of modified control set points

  13. • Flexibility activation order of -100kW • The algorithm adjustes flexibility delivery to the activated volume Modified flex. control set points

  14. Point of common coupling (emulated) Residential load and Photovoltaics (emulated) and Aggregator’s real-time algorithm (simulated) Lithium ion EV battery (second life)

  15. • Unareti Low Voltage and Medium Voltage grid, winter scenario, peak load, 19:00 (no Photovoltaics production) • Network reconfiguration causes overloading in network branch • DSO activates flexibility from Aggregator at congested load area (-0,1 MW; 15 min) • Emulated microgrid is connected to load area • (Baseline ; controllable power) available at microgrid’s Point of Common Coupling is (0kW; -1,68kW) • Aggregator sends initial -0,54kW flexibility control setpoint • Two cases are demonstrated: – Performing microgrid ( -0,53kW after flexibility reallocation) – Under-performing microgrid (wrong flexibility forecast, 0kW after flexibility reallocation)

  16. Modified flex. control set point

  17. Modified flex. control set point

  18. Thank you! Questions 

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