Transmission System Operators in the Interplay between Physics and Market

Transcription

1 Session 02: Large Scale Renewables Integration and the Changing Roles of TSO and DSO Companies Transmission System Operators in the Interplay between Physics and Market DI Mag.(FH) Gerhard Christiner Chief Technical Officer, Austrian Power Grid (APG) Vienna, 4 th November 2015

2 Foundations of security of supply in the European energy system System-bound grid-bound non-storable PRODUCTION CONSUMPTION Security of supply is national, regional and European-wide Christiner, APG: Transmission System Operators in the Interplay between Physics and Market

3 Today s energy system market-based power plant operation dictates power flows Trends Demand / Consumption Pan-European market development Offer / Production Achieved price Energy trader Amount End customer service / sales International Energy Market Total system view Fundamental transformation of the energy production sector Conventional power plants Industry, commerce, offices and warehouses Conventional power plants Hydro Power Pumped storage hydro power plants Households European Power Grid

4 energy price power demand Spatial divergence of generation and load causes grid congestions Decentralised infeed is usually not geographically close to demand Challenges Increasing amount of infeed depending on availability Merit order effect (standstills caused by price effects) Spatial divergence of infeed and demand Wide-ranging power flows achieved price with high RES infeed Hydro powerplants Risk: Regional supply problems due to lack of transmission capacity Nuclear powerplants Lignite powerplants (new) Hard coal powerplants (new) Lignite powerplants (old)! Hard coal powerplants (old)? Comb. cycl. power plants (CCPP) Gasturbine power plants capacity (accumulated) Grid congestions cause regional scarcity problems!

5 Future Base prices Time series for each future -year and day of trading Source: variable costs natural gas / CCPP variable costs hard coal variable costs lignite 5

6 energy price power demand System adequacy must be fulfilled at every moment! Threats to security of supply Generation adequacy Transmission adequacy System adequacy no sun, no wind Risk: Regional supply problems due to lack of transmission capacity or power plants Hard coal power plants (old)! capacity (accumulated) WINTER: Grid Security Reserves for GE For congestion management: contracted, short-term usable power plants necessary (system stability) SUMMER: Grid Security Reserves for AT 6

7 Current Bidding Zone Configuration in Continental Europe European comparison of wholesale prices (Year Base 2016) (all prices in ) 62,39 39,45 41,31 42,00 31,80 31,55 34,08 39,15 37,10 31,80 41,50 46,88 42,10 Market restrictions due to limited network transfer capacity 45,25 What will the Bidding Zone Configuration look like in 5 years? Market volumes are expected to increase, but

8 the transmission grid can t meet market expectations Trade path (according to schedules) Physical path 62,39 62,39 39,45 41,31 39,45 41,31 42,00 31,80 31,55 42,00 31,80 31,55 34,08 34,08 39,15 37,10 31,80 41,50 39,15 37,10 31,80 41,50 46,88 42,10 46,88 42,10 45,25 Market restrictions due to limited network transfer capacity Possible line overloads Possible line overloads require remedial actions to preserve security of supply 8

9 Costs for integrating market results into transmission grid increased dramatically Costs regional partners APG - share ~ 130 MEUR? Energy: ~ 1350 GWh > yearly consumption of Graz 2015 values as of includes estimated values Christiner, APG: Transmission System Operators in the Interplay between Physics and Market

10 Timely divergence of generation and consumption Discrepancy!! Smart quality management by the TSO 24:00 Wind power production 24:00 Demand characteristics 12:00 12:00 00: Completely different infeed characteristics < > 00: :00 Solar energy production Explanation demand and production - power as % of maximum value % % % % % 12:00 00: APG is responsible for the forecast process of available renewable energy infeed Christiner, APG: Transmission System Operators in the Interplay between Physics and Market

11 Increasing volatilities in the system cause huge gradients in infeed and more short-term market-activities Day-ahead / intraday market Intraday-share increasing Day-ahead-share decreasing 1130 MW in 45 Min ~ 1,5 GW/h! In total already more than 430 schedules per day to be processed 11 (day ahead + intraday)

12 Development of binding European standards Network Codes and Guidelines System Operation Related Codes Operational Security Operational Planning & Scheduling Load Frequency Control & Reserves Emergency and Restoration (OS) (OPS) (LFCR) (ER) Grid Connection Related Codes Requirements for Generators Demand Connection Code HVDC Connection Code (RfG) (DCC) (HVDC) Market Related Guidelines Capacity Allocation & Congestion Management Forward Capacity Allocation Balancing Network Code (CACM) (FCA) (EB) Transmission System Operators responsible for development and monitoring Christiner, APG: Transmission System Operators in the Interplay between Physics and Market

13 Development of Regional Security Cooperation Initiatives CORESO = COoRdination of Electricity System Operators Operational security & largescale renewables integration Development of the EU IEM Off-shore wind farms on the Channel and North Sea DC cables across the Channel and the North Sea (UK, NL, BE) TSC = TSO Security Cooperation Exchange of experiences on inter-tso remedial actions using state-of-the-art data flows Share knowledge and expertise gleaned through system monitoring Develop and implement new multilateral procedures and remedial actions, and thus maintain high system security levels Develop proposals for improving the functionality of the new, shared IT platform Christiner, APG: Transmission System Operators in the Interplay between Physics and Market

14 Network development is most effective measure for market development and renewable integration Total Investment AT ~ est. 2 bill. Planning horizon: New lines: est. 370 km* Upgrade of lines: est. 440 km* New projects and extensions/upgrades of many substations: est. 160 new bays on 380-/220-/110-kV est. 40 new transformers In line with pan European Ten Year Network development Plan Salzburgleitung Geographical overview of NDP-projects Salzburg line German line Grid extension Weinviertel Approval process is delaying realization! * Corridor AUSTRIAN length POWER GRID AG Christiner, APG: Transmission System Operators in the Interplay between Physics and Market

15 System length km in % Maintenance of lines and substations is also highly necessary Example: Mix of power lines in Austria 60.0% 50.0% 40.0% 30.0% 20.0% Summe 110 von kv 110-kV Summe 220 von kv 220-kV Summe 380 von kv 380-kV Summe Total Sum von Gesamt 10.0% 0.0% Year of commissioning 1/3 of entire line infrastructure is older than 50 years Christiner, APG: Transmission System Operators in the Interplay between Physics and Market

16 Smart Grids Super Grids Photovoltaics Environment and CO 2 Offshore Wind E-Mobility Storing and balancing energy For mastering the challenges of the energy change and to meet the targets of energy politics an adequate transmission grid and Christiner, APG: Transmission System Operators in the Interplay between Physics and Market effective grid management are essential

17 Front view Austrian Power Grid Wagramer Straße 19, IZD-Tower 1220 Wien Tel.: +43 AUSTRIAN (0) POWER GRID AG 17