1 / 37

Tutorial on Demand Response In Deregulated Electricity Markets: International Experience

Tutorial on Demand Response In Deregulated Electricity Markets: International Experience. Nuria Encinas Redondo Instituto Ingeniería Energética Universidad Politécnica de Valencia. Table of contents. Introduction Actual Status USA DR programs England and Wales NETA Rest of Europe

vahe
Télécharger la présentation

Tutorial on Demand Response In Deregulated Electricity Markets: International Experience

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Tutorial on Demand Response In Deregulated Electricity Markets: International Experience Nuria Encinas Redondo Instituto Ingeniería Energética Universidad Politécnica de Valencia

  2. Table of contents • Introduction • Actual Status • USA • DR programs • England and Wales • NETA • Rest of Europe • Current Research Efforts • EUDEEP • IEA DSM, Task XIII, Task XV • Conclusions CLEARWATER, FL

  3. World wide efforts are being done to achieve a massive deployment of DR • Actual status • Research efforts 1.- Introduction • Agents are interested in Demand Response: • Policy Makers And Regulators • Market Operators • Transmission System Operators • Local Network Operators • Traders And Retailers • Customers • There are still barriers to overcome: • Economical • Technical • Structural and Legal • Ignorance • Tradition • Financial CLEARWATER, FL

  4. 2.- Actual status 2.1.- USA FERC: RECOMMENDED ROLE OF ISOS AND RTOS • ISOs should facilitate both emergency load management actions and economic curtailments until market structures and signals are clear. • Many current programs provide subsidies (by necessity) • These indicate barriers or muted incentives to participation • Tools to achieve the goal should include: • Forward contracts for reliability interruptions • Meaningful reward/penalty features • Proper valuation of the capacity represented by interruptions • ISOs/RTOs must work with FERC and state regulators to ensure: • Demand response is a part of the standard market design • Standardized customer baselining practices • Consistent payment approaches CLEARWATER, FL

  5. I- Special pricing options • Provide hourly information to enable customer to modify their consumption according to prices • Small modification from traditional structures • Based on Real Time Pricing • Special Time of Use • Examples • Two part tariff: • usage at the margin=billed at RT price • Encouraging of RT Pricing through incentives: • Technical assistance • Caps during first months • TOU+especial peak days pricing CLEARWATER, FL

  6. II- Programs offering payments for load reductions • Payments credits in exchange of load reductions in particular periods of time • Different types: • Request criteria decided by Program Administrator needs (usually for emergency) • Voluntary load reductions (without penalizations) • Mandatory load reductions (with penalizations) • Tailored programs (for large consumers) • Request criteria by market price • triggered when market price reaches a limit • Day-ahead market • Forecast of Real Time price • Programs without notification • Scheduled event days • total monthly reductions CLEARWATER, FL

  7. III- Payments for DG productions • Payments or services in exchange of generation or load reduction using a separately metered self-generator. • Triggering • Usually for administrators needs • With or without penalizations according to capacity payments • Examples • Rolling Blackout protection • Capacity Incentives • Interruptible service for Stand-by generation CLEARWATER, FL

  8. IV- Programs offering services for participation • Special services for load reductions instead of payments • Technical assistance • Blackout protection • Examples • Optional Bidding Mandatory curtailment • Technical assistance incentives CLEARWATER, FL

  9. V- Programs that promote direct market participation • Interface for customers to present their offers of reduction to markets • Administratos acts as tradding agent in markets: • Energy market (day-ahead, hour-ahead) • Balancing market • Reserves market • Usually designed for large customers • Examples • Participating load program • Balancing up load • Replacement Reserve • Day-ahead Demand Response • Economic Load Response • Hourly ahead Dispachable load CLEARWATER, FL

  10. V- Other Programs • Remote controlled thermostats but with possibility of customer overriding • Energy Smart Thermostat Program • Profiled responses • as market one for aggregators • direct load control for final consumer • Example: • Real-time profiled response CLEARWATER, FL

  11. Participation on programs (I) • Enrollments by type of consumers • Enrollments by consumer size CLEARWATER, FL

  12. Participation on programs (II) CLEARWATER, FL

  13. Participation on programs (III) CLEARWATER, FL

  14. 2.2.- England and Wales: NETA Futures contracts OTC between parties OTC with SO Long-Term Spot Markets Short-term Final Program + Adjustment bids and offers 1 hour ahead Balancing Mechanism After delivery time Settlement Mechanism CLEARWATER, FL

  15. BILATERAL CONTRACTS • Power Exchanges: • Futures contract • Spot Markets • Over-the-counter • Forward markets • Direct contracts • The Most Important Power Exchanges: • UK Power Exchange (UKPX) • Futures Contracts • Spot Market • Automatic Power Exchange (UK APX) • Spot Market • Planned: future contracts • International Petroleum Exchange • Futures Contracts the same group CLEARWATER, FL

  16. Trading evolution (OTC) CLEARWATER, FL

  17. Trading Volumes (Power Exchanges) • During first 2 years only 2% of energy in the spot market CLEARWATER, FL

  18. CLEARWATER, FL

  19. BALANCING Volumes • During first years only 5% of energy in the the balancing market CLEARWATER, FL

  20. SETTLEMENT MECHANISM • System imbalance REAL S. Sell Price FP FP S. Buy Price REAL MW CLEARWATER, FL

  21. SETTLEMENT MECHANISM Prices CLEARWATER, FL

  22. Possibilities for the demand • Power Exchanges and OTC • Direct participation in the Short, medium and long term trading • Balancing markets • Direct Offers and bids • Contract with the SO • Frequency Response: • Commercial • Primary response • Secondary response • Reserves: • Fast Reserve (<2min) • Standing Reserve (<20min) • Reactive Power: • Enhance Reactive Power CLEARWATER, FL

  23. Participation • Offers and bids in balancing market:small participation <1% • Ancillary services: CLEARWATER, FL

  24. 2.3.- Rest of Europe Nordic countries(I) • Market structure • Involved Countries: • Norway, Sweden, Finland and Denmark • Structure: • Financial markets • Bilateral contracts (OTC) • Nord Pool • Elspot: Day-Ahead market • Elbas: Hour market • Regulating power market CLEARWATER, FL

  25. Nordic countries (II) • DR possibilities and participation • Day-ahead bids: Elspot • Hour-ahead bids: Elbas • Balancing offers and bids: regulating market • Reserves: regulating market • Fast active disturbance reserve (controllable loads) • Slow active disturbance reserve • Frequency control (with automatic disconnection of loads) • Frequency controlled disturbance reserve CLEARWATER, FL

  26. 3.- Research efforts 3.1.- International Energy Agency • Agency objective: • Seek to promote the effective operation of international energy markets and encourage dialogue with all participants • Initially focused on strategic oil reserves • Currently includes: • Fossil fuels • Electricity • 26 Member countries CLEARWATER, FL

  27. IEA Demand-side Management Program • Tasks: • Task I: International Database on DSM Technologies and Programs • Task II: Communications Technologies for DSM • Task III: Co-operative Procurement of Innovative Technologies for Demand • Task IV: Development of Improved Methods for Integrating Demand • Task V: Investigation of Techniques for Implementation of DSM Technology in the Market Place • Task VI: Mechanisms for Promoting DSM and Energy Efficiency in Changing Electricity Businesses • Task VII: International Collaboration on Market Transformation • Task VIII: Demand-Side Bidding in a Competitive Electricity Market • Task IX: The Role of Municipalities in a Liberalized System CLEARWATER, FL

  28. IEA Demand-side Management Program • Tasks(II): • Task X: Performance Contracting • Task XI: Time of Use Pricing and Energy Use for Demand Management Delivery • Task XII: Cooperation on Energy Standards • Task XIII: Demand Response Resources • Task XIV: Market Mechanisms for White Certificates Trading • Task XV: Network Driven DSM CLEARWATER, FL

  29. IEA dsm TASK XIII • Goals • Define and build turn-key DRR infrastructure model including Business Model, Business Rules, Enabling Technology, Standards and Implementation Plan • Deliver DRR into “any” emerging or existing liberalized electricity market • Subtask • Finalize global and country-specific objectives • Define the DR resource base and market characterization • Market potential of DRR • Demand response valuation • Role and value of enabling technologies • Characterize priorities and barriers, and develop solutions and recommendations • Develop DRR network of methods, tools and applications • Deliver products and Intellectual Property to IEA DSM program and project participants CLEARWATER, FL

  30. 3.2.- EU-DEEP • The birth of a European Distributed EnErgy Partnership that will help the large-scale implementation of distributed energy resources in Europe • A European Project supported within the Sixth Framework Programme for Research and Technological Developement • 39 partners and 15 countries • Project begining: January 2004 • Finishing: 2007 CLEARWATER, FL

  31. DR within EUDEEP (I) • In WP1 • Market segmentation. • From the customer point of view • Three levels of segmentation: • First level: Residential, Commercial & Industrial • Second level: economic activity • Third level: Considering uses of energy • Segments potential evaluation (ranking) • Ranking combination of three different rankings: • Distributed Generation • Distributed Storage • Demand Response • Characterization of segments also considering DR: • Energy supply, end uses, Demand flexibility, storage options, etc. Examples Factors: size, attitude, demand flexibility, load patterns, etc. CLEARWATER, FL

  32. DR within EUDEEP (II) • In WP3 • Evaluation of Local Trading Strategies • Impact of DR applications in load curves • economic apraisal • Market possibilities Through modelling of characteristic customersand simulating combinations of strategies: DG+DS+DR CLEARWATER, FL

  33. 3.3. EFFLOCOM Energy eFFiciency and Load curve impacts of COMercial development in competitive markets • A EU SAVE program • 6 partners, 5 countries • SINTEF Energy Research, Norway • ECO-Tech, Norway • EDF, France • Energy Piano, Denmark • Electricity Association, England • VTT, Finland • Project period: July 2002-August 2004 CLEARWATER, FL

  34. 3.4. Busmod BUSiness MODels in a world characterised by distributed generation • EU-EESD project • Objectives: • Analysis of current methodologies and distributed generation characteristics. • Definition of different business scenarios in a deregulated distributed generation electrical power market. • Anticipation of future actors participating in deregualted electricity markets. • Design of a methodology allowing feasibility studies related to distributed generation, through a systematic procedure. • 7 partners, 5 countries • IBERDROLA (Spain) • LABEIN (Spain) • VUA (The Netherlands) • ECN (The Netherlands) • UMIST (United Kingdom), • SINTEF Energy Research (Norway), • EnerSearch (Sweden). CLEARWATER, FL

  35. 3.5. PIER Demand Response Research Center • Promoted by the California Energy Commission • Led by Lawrence Berkeley National Laboratory • Main objective: • Develop, prioritize, conduct, and disseminate research that develops broad knowledge that facilitates DR • Activities: • Create a research roadmap for DR in California • Establish multi-institutional partnerships • Foster connections with stakeholders through outreach efforts • Sustain long-term attention to DR research topics • Conduct research, development, demonstrations, and technology transfer Research Categories: Policies, programs, and tariffs Utility markets, technology, and systems Customer and end-use technology and systems Consumer and institutional behavior CLEARWATER, FL

  36. 3.7. Demand-Side Working Group (DSWG) • Created and Chaired by Ofgem, UK • Objective: • identify and assess any practical and/or commercial obstacles to demand side participation in the wholesale electricity trading arrangements • Activities • Reviews and assesses options and potential opportunities for the demand to participate in wholesale market. • Identifies practical and/or commercial obstacles inhibiting effective demand side participation in the wholesale market; • Determines measures for the removal of these obstacles • Evaluates and proposes a timescale over which the necessary improvements to demand side participation in the wholesale electricity tradingarrangements can be addressed. CLEARWATER, FL

  37. 4. Conclusions • Demand Response is an active subject in the energy industry • Stakeholders have been interested and developed DR structures • World wide research efforts try to overcome actual obstacles to reach a massive deployment • Research efforts are focused in the demand-pull approach: • The customer is the cornerstone of DR • IEA, EU Commission CLEARWATER, FL

More Related