INTEGRATION OF WINDPOWER IN THE ENERGY MARKET

Size: px

Start display at page:

Download "INTEGRATION OF WINDPOWER IN THE ENERGY MARKET"

Silas Strickland
6 years ago
Views:

1 INTEGRATION OF WINDPOWER IN THE ENERGY MARKET - The role for the DSO s Knud Pedersen, Chairman, Radius Frederiksberg, June 14 th 2017

2 Agenda 1 Radius and the customers 2 Situation, trends and challenges 3 Activities supporting flexible consumption 2

Radius serves many customers in Denmark and.

quality of supply and high costumer satisfaction in our touch points with costumers Customer

grid Meter installation with the customer Grid reinforcements when required Asset base (RAB)

value of DKK 10,8 Bn 1 Customer service regarding metering Collection and validation of

3 Radius serves many customers in Denmark and. Radius distributes power in the greater Copenhagen areas and parts of Zealand Secures high quality of supply and high costumer satisfaction in our touch points with costumers Customer service regarding connection Handling of outages Connection of customer installation to the grid Meter installation with the customer Grid reinforcements when required Asset base (RAB) with approx. value of DKK 10,8 Bn 1 Customer service regarding metering Collection and validation of production and consumption data Forwarding of data to the datahub ~ 1 million customers Approx km of cables Distribution area covers ~30% of the Danish population Distributes ~8.400 GWh per year 1. RAB: regulatory asset base as per end of

4 . is ready to support the green transformation Renewable energy is the driver for change Radius Smart Meter roll out % of total meter population Smart Meter Self-read meters 2% 7% 33% 30% of the total energy consumption must come from renewable energy resources in 2020 Independency from fossil fuels in fossil in % 93% 67% 68% 32% 100% Source: Danish Energy Association, Danish Energy Agency & Danish Energy Regulatory Authority Green energy increases the challenges for the grid Share of domestic supply, % of total Renewable Fossil Time differentiated tariffs stimulate load levelling KW Øre/kWh 16% 84% 27% 35% 73% 65% 53% 47% 24 h load Tariff C-winter (households) Tariff B winter (businesses) Time of day 4

The major challenges and possibilities are driven by market developments and more is expected Market trends DERs, micro grids and new players challenge the collective idea and a common grid Increased

5 The major challenges and possibilities are driven by market developments and more is expected Market trends DERs, micro grids and new players challenge the collective idea and a common grid Increased and volatile loads challenge quality of supply.. leads to increasing activity in the distribution grid Continued demand for cost reductions in the sector + CO

The DSO must fulfill its key role as a neutral market facilitator - innovate to catalyze value

knowledge to create value for society Enable value creating usage of current and future

a high-quality service to all customers TSO Regulator DSO Datahub Commercial co s The DSO must

barriers and possibilities for new technology and business models (Practice the future)

6 The DSO must fulfill its key role as a neutral market facilitator - innovate to catalyze value creation for market players The DSO plays a central role in the market and must utilize knowledge to create value for society Enable value creating usage of current and future infrastructure Producers Be a key player enabling a successful energy transition while providing a high-quality service to all customers TSO Regulator DSO Datahub Commercial co s The DSO must utilize it s central position to create value for all market participants Innovate to explore barriers and possibilities for new technology and business models (Practice the future) Consumers Regulators must recognise the DSO s as neutral market facilitators and encourage efficient technological innovation. 6

7 Radius activities regarding flexibility The project Flyt dig! - Test of the effects of time differentiated tariffs - 2 x 500 customers - In cooperation with SEAS-NVE (2015) Radius present time differentiated tariffs - Presently (PV-installations) - Increasing from Jan 1 st 2018 New tariff model Further Incentivize/reward intelligent use of power - Help coping with the challenges of the distribution grid Roll out of Smart Meters - Facilitate dynamic pricing - Implicit demand response - More detailed info regarding consumption - Smart home services Market Model 2.0 initiated by Energinet - Seminar on market models for flexibility next week Various national and international activities - Clean Energy for all the active customer - USEF defining the aggregator role (explicit demand response) ienergi - Market design for flexible consumption EnergyLab Nordhavn - Test of battery in different application set-up s Study on tariffs in EnergyLab Nordhavn - Tariffs based on the effect in stead of consumption? - Customer perception/adaption of different tariffs? - Customer interest for flexible products? 7

8 Flyt dig! major take-aways from testing consumer response - household customers Results: Flyt dig! had an effect on the consumption profile! The effect was visible but modest a reduction of approx. 2% The elasticity is -0,19 compared to the total price Learnings: Flyt Dig! shows a unused potential for load levelling Differentiated tariffs is a vehicle for flexible power consumption Perspectives: Total consumption in DK is approx. 32 TWh - Peak: 6,5 TWh - 2% equals 130 GWh Corresponding to the unintelligent charging of EV s The effect is not in-significant 8

9 Present time differentiated tariffs for household customers øre/kwh inkl. VAT 90,00 Grid tariff winter (April-October) 80,00 70,00 60,00 50,00 40,00 30,00 20,00 10, Hour of day Flat tariff Time differentiated 9

Radius as innovator integrating a battery into grid planning Purpose Practice for the future gain knowledge about new technology and inspire others to innovate on usage of batteries supporting the

10 Radius as innovator integrating a battery into grid planning Purpose Practice for the future gain knowledge about new technology and inspire others to innovate on usage of batteries supporting the balancing of renewable energy production Goals Batteries as part of grid planning and interaction with commercial electricity market Deferral of grid reinforcements Peak shaving Participating in the frequency market Gain knowledge from technical operation and reliability Facts Develop algorithms for operating the battery Gain insight from other use than Radius Evaluate battery performance and lifetime 460 kwh battery Can supply 60 households for 24 h 10

11 11 Thank you for your attention

Universal Smart Energy Framework

Universal Smart Energy Framework Seminar Future Grid Lab: Introduction to Flexibility 09-10-2018 A solid foundation for smart energy futures - 1 The Energy Transition the need for flexibility Energy transition