Towards a sustainable market design

Transcription

1 Towards a sustainable market design European Utility Week 2013 Klaas Hommes Amsterdam, 16 October 2013

2 Content! Introduction: TenneT TSO! Introduction: Dutch RES targets! Criteria ensuring a secure system! Deeper look into solar and wind As providers of ancillary services Load duration curve! TenneT view on market design 2

3 TenneT: Europe's first cross-border TSO TenneT monitors the continuity of electricity supplies in the Netherlands and Germany TenneT is responsible for maintaining the power balance between supply and demand TenneT is responsible for providing an adequate transmission grid TenneT takes care of efficient and safe transport and systems services TenneT facilitates the market 3

4 TenneT s strategy! Strenghten and Build! Investing in national and international grid infrastructure! Integration of renewable energy! Development of a North-West European market! From the 'periphery of Europe' to 'power hub' 4

5 Dutch RES targets A very large share of the RES targets will have to come from electricity This has to be realized in a very limited number of years Share of renewable energy (%) Share of renewable in electricity mix (%) Share of wind and solar in elektricity (%) 2012: realization 2020: target The Netherlands to catch up 2012: realization 2020: projection In x more electricity from renewables : realization 2020: projection In 2020 a very high share from intermittent sources % % % Germany The Netherlands 5

6 Criteria for a secure system! System requirement Adequate generation to meet demand at all times Sufficient inertia which is essential for a stable frequency Flexibility for balancing and ramp speed for compensating for fluctuating production Sufficient means of voltage control Controllability of generators in the event of major disturbances! Market instruments for providing system stability Market integration as a cost-efficient tool for successfully integrating renewables! Regulatory requirements More coherence between the regulatory regimes in Europe Planning: More coordination between grid and generation 6

7 Deeper look: ancillary services 7

8 Deeper look: the share of RES over the year! The Energy Agreement assumes the 8000 MW wind and 4800 MW solar capacity in % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% The share of wind and solar TenneT scenario Energieakkoord (2020) wind + solar PV (% of load) Hours in a year ranked from high to low share of contribution of wind and solar! Over the course of a year this capacity will deliver anything between 0% and 90% of demand, meaning: at times almost all system support has to be delivered by wind and solar; for other times full back up capacity from other sources remains needed 8

9 TenneT s view on market design 9

10 TenneT s view on market design Ø Strenghten the energy-only-market and complete European market integration Ø Integrate RES into the electricity market: no unlimited expansion of capacity responsive to price signals (commodity and balancing) actively participating delivering system support Ø European coordination to safeguard security of supply in each country: Taking into account reliable cross border supply can prevent the need for national measures Ø Monitor the functioning of the energy-only-market and its capacity to deliver the system requirements Ø Allow the market to develop and use all competitive sources of flexibility like storage and demand response and exchange flexibility over a large area. Ø Where possible use flexibility not only for national balancing but also for capacity management and voltage control in lower voltage grid in close TSO DNO cooperation. 10

11 TenneT is Europe s first cross-border grid operator for electricity. With approximately 20,000 kilometres of (Extra) High Voltage lines and 36 million end users in the Netherlands and Germany we rank among the top five grid operators in Europe. Our focus is to develop a north-west European energy market and to integrate renewable energy. Taking power further