Microgrid opportunities in Finland D.Sc. (tech.) Samuli Honkapuro Assoc. Prof. in Energy Markets LUT School of Energy Systems Lappeenranta University of Technology FINLAND Samuli.Honkapuro@lut.fi
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 6.12.2017
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
Challenging environmental conditions Source: www.eea.europa.eu/data-and-maps/figures/forest-map-of-europe-1 5
Network and DSO structures 500 000 450 000 400 000 Number of customers 350 000 300 000 250 000 200 000 150 000 100 000 50 000 0 DSO (total number 83) Development of underground cabling in Finland Underground cabling rate Low voltage networks 2014: 142 000 km (OH), 98 000 km (UG) Source: Energy Market Authority https://www.energiavirasto.fi/en/home Medium voltage networks 2014: 118 000 km (OH), 23 000 km (UG) Year
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. http://www.eurelectric.org/media/113155/dso_report-web_final-2013-030-0764-01-e.pdf Customer density decreases 7
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 570 000 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
Challenges in flexibility - quality of frequency in Nordic power system Source: Fingrid
Annual and daily load variation 16 000 14 000 Year 2016 12 000 10 000 MW 8 000 6 000 4 000 2 000 0 One year 15 500 15 000 14 500 14 000 MW 13 500 13 000 12 500 12 000 11 500 7.1.2016 1 6 11 16 21 hour
Existing demand response in Finland Source: Fingrid
Price of electricity day-ahead market prices in Nordic electricity wholesale markets 70 60 50 /MWh 40 30 20 10 0 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Prices of frequency controlled reserves in Finland (yearly market prices) 20 18 FCR-N: Frequency controlled normal operation reserve 16 Price /MW,h 14 12 10 8 6 FCR-D: Frequency controlled disturbance reserve 4 2 0 2011 2012 2013 2014 2015 2016 2017 Year
Smart meters in Europe enablers for dynamic pricing http://www.usmartconsumer.eu
Smart grid and interactive customer gateway In Finland, every customer has an AMR-meter (measurement of hourly energy consumption) and communication channel
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
LVDC microgrid pilot installation Pilot installation by Suur-Savon Sähkö Oy (a Finnish DSO) and LUT, in operation since 2012 1.7 km long underground cabled bipolar ±750 V DC network Battery energy storage (2 x 30 kwh) and solar panels
Green Campus Our living lab concept Efficient use of resources Data collection services for research purposes Scalable Flexible loads and production 18
Some of ongoing research projects
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?
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
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: 771066 Copyright DOMINOES consortium
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
Thank you! D.Sc. Samuli Honkapuro LUT Energy Lappeenranta University of Technology Lappeenranta, Finland Samuli.Honkapuro@lut.fi Lappeenranta University of Technology (LUT)