Microgrid opportunities in Finland
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- Joshua Cummings
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2 Microgrid opportunities in Finland D.Sc. (tech.) Samuli Honkapuro Assoc. Prof. in Energy Markets LUT School of Energy Systems Lappeenranta University of Technology FINLAND
3 Contents of the presentation State-of-the-art and challenges of the power system and energy markets in Finland => Needs and possibilities for microgrids Microgrid demonstrations and related research activities
4 Restructured electricity markets in Finland Vertically integrated utilities Monopoly Generation Selling Deregulation In 1995 Competion Generation Selling Transmission Distribution Monopoly Transmission Distribution Key properties and actors One transmission system operator, TSO (Fingrid Oyj) 83 local distribution system operators, DSOs TSO and DSOs local regulated network monopolies Free competition in wholesale and retail electricity markets The Baltic Sea Region as market area in wholesale markets Interconnected network in Nordic area Source: Finnish Enegy Industries
5 Challenging environmental conditions Source: 5
6 Network and DSO structures Number of customers DSO (total number 83) Development of underground cabling in Finland Underground cabling rate Low voltage networks 2014: km (OH), km (UG) Source: Energy Market Authority Medium voltage networks 2014: km (OH), km (UG) Year
7 Length of interruptions vs. customer density >70 meters per customer Sources: CEER Benchmarking Report 5.2, on the Continuity of Electricity Supply, Data update, Ref: C14-EQS-62-03, 12 February, 2015 Eurelectric. Customer density decreases 7
8 Reliability drivers New Electricity Market Act in 2013 In 2011 and 2012, as a result of storms and heavy snowfall, several major disturbances occurred in the electricity supply in Finland à customers in total without electricity and over 60 M costs for DSOs. In new regulation, there is a limit for the maximum duration of an interruption for a customer: 6 h (urban areas) and 36 h (rural areas). These limits have to be met by the year 2028 In addition, there are customer compensations for interruptions > 12 hours (up to 200 % of annual distribution fee) Cost of energy not supplied has also an impact on the allowed revenues of the DSO through monopoly sector economic regulation 8
9 Challenges in flexibility - quality of frequency in Nordic power system Source: Fingrid
10 Annual and daily load variation Year MW One year MW hour
11 Existing demand response in Finland Source: Fingrid
12 Price of electricity day-ahead market prices in Nordic electricity wholesale markets /MWh
13 Prices of frequency controlled reserves in Finland (yearly market prices) FCR-N: Frequency controlled normal operation reserve 16 Price /MW,h FCR-D: Frequency controlled disturbance reserve Year
14 Smart meters in Europe enablers for dynamic pricing
15 Smart grid and interactive customer gateway In Finland, every customer has an AMR-meter (measurement of hourly energy consumption) and communication channel
16 LVDC migrogrid solution to improve the continuity of supply Based on our study of studied medium voltage AC branches can be renovated MOST ECONOMICALLY with LVDC
17 LVDC microgrid pilot installation Pilot installation by Suur-Savon Sähkö Oy (a Finnish DSO) and LUT, in operation since km long underground cabled bipolar ±750 V DC network Battery energy storage (2 x 30 kwh) and solar panels
18 Green Campus Our living lab concept Efficient use of resources Data collection services for research purposes Scalable Flexible loads and production 18
19 Some of ongoing research projects
20 Multi-objective role of battery energy storages in energy system Centralized BESS (primary substation) Helen Suvilahti 600 kwh, 1.2 MW Centralized BESS (secondary substation) LUT Green Campus 132 kwh, 188 kw Distributed BESS (customers) LVDC Suomenniemi 2x30 kwh, 2x30 kw Mobile BESS (customers) LUT Green Campus 1.3 kwh, 27 kw (NiMH) and 4.3 kwh,3 kw (LiFePO4) 1. How to optimize the stakeholder -specific utilization of an individual BESS for different purposes (e.g. peak-cutting, control of frequency and voltage, optimization of reactive power balance, electricity trade in day-ahead, intraday, and ancillary markets, back-up power for end-user / network, etc.)? 2. How to optimize the operation of a system with multiple battery energy storage systems with different sizes, locations, and owners?
21 Integrated business platform of distributed energy resources R&D and testing support Pilots and references New business models Development of new solutions Control hub Enhancing new energy businesses Quick iterativeproofingcycle for new products and services Integrated platform Interfacing facilities Access for companies Co-creationplatform Pilot data sharing Integrating R&D environments TUT laboratory and simulation environment VTT laboratory and simulation environment LUT laboratory and simulation environment Marjamäki Green Campus Further pilots
22 DOMINOES - Smart Distribution Grid: a Market Driven Approach for the Next Generation of Advanced Operation Models and Services The DOMINOES project aims to enable the discovery and development of new demand response, aggregation, grid management and peer-to-peer trading services by designing, developing and validating a transparent and scalable local energy market solution. 34 months (10/17-4/21), 8 partners from 4 countries, 3.4 M (630 k for LUT) The DOMINOES project will show that active consumers can truly and effectively play a considerable role in the energy markets. H2020 Grant Agreement Number: Copyright DOMINOES consortium
23 VISION Integration of distributed customer driven renewable based energy systems with centralized utility driven systems On-line management of millions of active energy resources in equipment, customer and µgrid level smart house National grid company, FG Local distribution companies,jse, HSV Energy suppliers, Fortum, Helen,.. Energy communities Aggregators, service Aggregators, providers A
24 Thank you! D.Sc. Samuli Honkapuro LUT Energy Lappeenranta University of Technology Lappeenranta, Finland Lappeenranta University of Technology (LUT)
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