Smart Distribution Management. The evolution of regulatory tasks and business models Manuel Sánchez, Ph.D Team Leader Smart Grids European Commission, DG ENER Brussels, 13 May 2013 Energy European Smart Grids Task Force 2012 - 2013 EG1: Standards Mandate M/490 and validation of work programme 1st of standards by 2012 and 2nd set by 2014 Interoperability and Conformance Testing Map Coordination with other mandates, e.g. M441 and M468 Cooperation with other regions, e.g. NIST EG2: Data Protection and Security DPIA template Cyber security assessment framework Consultation minimum security requirements EG3: Regulation Identification of data handling options and actors Implications for regulatory framework EG4: Infrastructure Identification process for "Project of Common Interest" Organisation of structures and procedures EG5: Industrial Policy Identification of conditions for investment and speeding up technology deployment Dr. Manuel Sánchez Jiménez © European Commission manuel.sanchez–jimenez@ec.europa.eu 2/11 1 Present regulation of electricity distribution activity European legislation 2009/72/EC is the common understanding Task of the DSO Unbundling requirements of DSO in terms of legal form, organization and decision-making for other activities not related to distribution DSO revenues and distribution grid tariffs (+ in EED) Retail market: DSO is a neutral market facilitator carry on the switch of supplier and roll-out of smart metering in many MS Dr. Manuel Sánchez Jiménez © European Commission manuel.sanchez–jimenez@ec.europa.eu 3/11 Present organisation of EU distribution sector* Dr. Manuel Sánchez Jiménez © European Commission manuel.sanchez–jimenez@ec.europa.eu 4/11 2 Present organisation of distribution sector in the EU Existing EU regulation leaves room for national implementation and countryspecific approaches to DSO regulation > 3500 DSOs > 1.500.00 km Ref. Eurelectric Dr. Manuel Sánchez Jiménez © European Commission manuel.sanchez–jimenez@ec.europa.eu 5/11 Investments in Smart Grid projects (excl. metering) Dr. Manuel Sánchez Jiménez © European Commission manuel.sanchez–jimenez@ec.europa.eu 6/11 3 Smart Integration Key messages from 1st Workshop, 17 October 2012 Key ‘Smart Integration' Messages • There is the need for the right market conditions and cooperation with regulators • Smart integration brings benefits for different stakeholders, but not always for grid operators. There is a clear need to clarify the sharing cost and benefits among stakeholders and throughout the value chain • Third parties might build new peaks or load flows • Demonstration and deployment means that we are discussing real projects • DSOs need incentives to invest in other network solutions than 'iron and copper' Dr. Manuel Sánchez Jiménez © European Commission manuel.sanchez–jimenez@ec.europa.eu 7/11 Smart Customer Key messages from 2nd Workshop, 22 January 2013 Key ‘Smart Customer’ Messages • ‘Developing’ smart options for active customers requires efforts from several market players (DSO, retailer/aggregator, regulators and policy makers) and thus also multi-dimensional incentive schemes • Smart customer services will mainly be delivered by the retailer/aggregator based on the different markets; however the role of the DSO as an independent facilitator neutral from the retailer/aggregators is crucial. Among the services that shall be facilitated by the DSO electricity distribution with relevant power quality and providing meter values for settlement and extended services • The most efficient smart customer services will evolve over time based on the customer values, it is therefore necessary to continuously invest in pilots to identify what is attractive for the customer and at the same time financially and technically feasible • Customer information plays an important role. Evolution is not only there for smart grids, but also for active customers • Multi-dimensional incentive schemes are important, but customer behaviour is not always rational; DSOs, together with aggregators, must invest in pilots to: - Prove that aggregation is technologically feasible - Test which services can be delivered by aggregators to DSOs • Finally, DSOs (as system operators) need active customers, but they are only one part of the puzzle. DSOs have to further investigate possible features, carry out pilots and undertake actions that can be used as incubators for new business models. Dr. Manuel Sánchez Jiménez © European Commission manuel.sanchez–jimenez@ec.europa.eu 8/11 4 Evolution of data processing and business models 9 Dr. Manuel Sánchez Jiménez © European Commission manuel.sanchez–jimenez@ec.europa.eu 9/11 Rethinking the regulation of European DSOs Proposed topics for discussion Revise the roles and responsibilities of DSOs (IEM, incl. electro-mobility) Define the minimum level of consumer data availability Define DSO-TSO interaction in compliance with network codes Guidelines for remuneration and network charges for DSO Guidelines on measures to reinforce Chinese walls (or unbundling) between any DSO and DER-related business under the same holding Dr. Manuel Sánchez Jiménez © European Commission manuel.sanchez–jimenez@ec.europa.eu 10/11 5 manuel.sanchez-jimenez@ec.europa.eu http://ec.europa.eu/energy/index_en.htm http://ec.europa.eu/energy/gas_electricity/smartgrids/taskforce_en.htm Energy 6 ESB Networks Smart Automation Ellen Diskin, ESB Networks Eurelectric Smart Grid Academy 13 May 2013 Table of Contents 1. Smart Automation: What and why? 3 2. ESB Networks Smart Green Circuits 4 3. ESB Networks R&D for future automation 6 4. Developing the underlying infrastructures 5. Challenges and risks 2 12 Document Title esb.ie Smart Automation: What & why? What & why? ● Sensing & control based operation ● Local automation and/or centralised control ● Improves – power quality (voltage performance) – continuity ● Automation & associated infrastructure can be used to deliver new services (energy efficiency, variable DG access, demand response systems) ● Improves operational efficiency – improved information to aid fault location – Remote switching rather than operator travelling to location to operate switch manually ● Improves safety – Quicker fault location – less or no pole climbing – Avoid full reclosing on faults 4 esb.ie ESBN Smart Green Circuits Continuity technology trials Smart Networks: The Operations Jig Saw Loop Automation Tripsaver ASC FPI 6 esb.ie Drivers for new solutions Irish MV network characteristics Fault Characteristics ● Total overhead line length 82,596 km (4 times EU average per capita) ● 70-80% of faults are transient ● 67% single-phase ● Earth faults account for 70-80% of all faults ● 55% 10kV, 45% 20kV (51% : 49% for OH networks) ● ESBN measured results ● Continued 20kV conversion ● 80 earth faults per station per annum ● MV overhead rural outlets = 1086 ● 83.5% of earth faults on MV networks are transient ● Spurs over 30 subs = 879 ● Spurs over 50 subs = 216 ● Largest spur = 123 substations ● 10kV system has isolated neutral, patented Faulty Phase Earthing system allows continued supply in case of earth faults ● 20kV networks are low resistance earthed with sensitive earth fault tripping 7 ● Historically 20kV continuity far below that of 10kV – aggressive tree cutting programme adopted, but increases Opex. Automation may be longer term solution ● 5 year regulated allowance of € 22.3m for continuity improvement measures (MV automation) esb.ie Single Phase reclosers Initial Pilot S&C Tripsaver ● Characteristics – Vacuum recloser – Self powered, no battery – No settings or maintenance – No communications or coordination ● Installation & operation – Fit by live line crews – Manual operation by “load buster” tool – Blocker device available for work on spur ● Units installed on both 10kV and 20kV networks ● Measured improvement of – 18.59% reduction in customer interruptions – 14.32% reduction in customer minutes lost 8 esb.ie Single Phase reclosers – further development Differentiating characteristics Siemens Fusesaver ● First phase – 2 shot reclosing then drop-out – no fuse – No data storage / memory – No communications ● Second phase – New supplier & device => new installation and commissioning procedures to be developed, new physical challenges – Single shot reclosing, in series with fuse – data storage / memory allows post-analysis Current data download via short range radio – Short range radio link allows data download near installation site – GPRS & 4G communications modules being developed 9 Document Title esb.ie Distribution automation Rural automation schemes ESBN remotely controlled devices ● 2.5 remotely controllable devices per outlet ● independent reclosing, clearing transient faults with not outage ● pre-set coordination of time-current characteristics ● Remote network re-configuration for operational purposes (planned load transfers, fault isolation) ● Transducers being developed to connect existing downline switches without communications ● 1,950 devices by 2015 ● Based on fault records, network stat, planning & operational procedures – 64% (20kV) 69% (10kV) reduction in customer interruptions – 43% (20kV) 39% (10kV) reduction in customer minutes lost 10 esb.ie Loop automation F Loop Automation Timers No Voltage CB CB F Feeder Recloser M1 Midpoint Recloser T Tie Recloser F No Voltage A B M1 Grading Grading M1 A B Grading M2 A B No NoCommunications! Communications! No Voltage A B No NoOperator OperatorIntervention! Intervention! M2 Grading No Voltage Grading T 11 esb.ie Loop automation Feeder Recloser F CB CB F M1 Midpoint Recloser T Tie Recloser F No Voltage A B M1 Grading Grading M1 A B M2 Grading Grading M2 A B No Voltage A B T No Voltage 12 esb.ie Advanced MV Arc Suppression ● ASC-C Arc Suppression Coil Controller ● PAW Power Auxiliary Winding ● CIF Current Injection by Frequencies ● DR Damping Resistor ● ER Earth Resistor ● PLC Pulsing Controller ● EOR-D Earth Fault Detection 13 esb.ie Advanced MV Arc Suppression System features Control Interface ● Dual tuning mechanisms movement of the coil across the resonant point of the Network avoided CIF Current Injection by Frequencies ● Senses variation in neutral current and varies inductive current to suppress arcs, avoiding transient fault occurrence ● during earth fault, system tunes to resonant position to maximise safety at the fault site ● In the event of a loss of Feeder, during an earth fault, system tunes by the measured quantity in [A] of that Feeder to maximise safety at the fault site. 14 Document Title esb.ie Advanced MV Arc Suppression Results & Development Result characteristics ● 74.73% reduction in CI ● 65.76% reduction in CML ● 70.26% reduction total outage cost/km ● 8 sites: 2 live, 2 almost fully commissioned, 2 in construction & 2 more planned ● Developments – Integration with embedded wind generation, COMPLETE – Integration with existing 10kV FPE systems, ONGOING FIELD DEMO – Active Current Injection, GOING LIVE MAY 2013 – Advanced fault location system, >75% REDUCTION IN FAULT LOCATION TIME 15 Document Title esb.ie Smart Fault Passage Indicators ● Alert to network operator’s smart phone ● High resolution current traces in online monitoring system Fault location – hunting time reduced from up to 8 hrs to average 1.5 hrs when combined with ASC and Pathfinder device! 16 esb.ie ESBN R&D for future automation Continuity technology trials Automation required for energy efficiency EU Energy Efficiency Directive: “ ESBN smart energy efficiency measures Each member state: …may allow energy savings achieved in the energy transformation, distribution be counted towards the energy savings required shall ensure that national energy regulatory authorities pay due regard to energy efficiency Low loss amorphous core transformers 40,000 km 20kV conversions, reducing losses 75% but smart automation required for continuity at 20kV shall ensure an assessment is undertaken of the energy efficiency potentials of electricity infrastructure concrete measures & investments are identified for the introduction of cost-effective energy efficiency improvements in the network infrastructure Conservation voltage reduction: ” But rural implementation requires remote control & automation of downline voltage regulators ↓3% voltage kW ↓3% kVAr ↓>21% esb.ie Developing the underlying infrastructures Continuity technology trials Telecoms 20 Footer esb.ie SCADA interfaces & control Ongoing development of SCADA interfaces for MV Voltage regulators Bulk regulator control facility to be developed through SCADA scripting 6 pilot deployments – 2 regulators deployed under backfeed and embedded generation conditions revealed need for updated specifications 21 Document Title esb.ie Challenges and Lessons Learned Revision of specifications MV Downline Voltage regulators Proposed application ● Several auto reverse power flow modes ● dedicated mode designed to respond in presence of embedded generation ● DG developers want this as cost effective alternative to reinforcement ● BUT – Existing firmware allows only for selection of automated or manual tapping, not choice of which reverse mode is in operation. – Regulator’s sensing shown to lack sensitivity to operate with embedded generation – Reliability of automation in question 23 Document Title esb.ie Difference between should and did… 24 Closed loop operation What the system did do… Voltage regulator operating in co-gen mode, on change of feeding direction should change sensing direction and continue to regulate to the pre-set level 6am on a Sunday morning, at a time of low load and moderate generation, voltage regulators cause circulating current leading to sustained undervoltage. Generation customer tripped off and could not reconnect. Reverse power flow operation What the system did do… Voltage regulator has reverse operational modes designed to cooperate with embedded generation Due to regulators being near zero current point under certain generation conditions, the power flow was outside their monitoring sensitivity, leading to SCADA alarms as the regulators could not determine the appropriate power flow direction. Document Title esb.ie Efficient development & delivery Delivery considerations Challenges encountered ● Automation installation works can be delivered in conjunction with other required work on same networks ● Some automation systems require network improvements before installation – many networks to be arc suppressed require replacement of insulators ● Assets in need of replacement can be replaced with new technologies ● New installation and commissioning procedures should be developed with input and feedback from local staff – ● practical considerations raised by operational staff fed back to suppliers can influence further product development 25 ● Delays of weeks, months and seasons due to technician scheduling – delivery organisations may have other priorities ● A single bad experience can lead to mistrust of local operators ● Multiple new systems may be resisted if the first was not a success… Document Title esb.ie Efficient system integration & protocols Solutions Complications ● SCADA and OMS links, and existing devices and infrastructures can be used collect increased monitoring data ● Device protocols do not match legacy systems – many of the new IEDs use DNP3, ESBN SCADA is IEC 101/104 ● New devices can be integrated into existing SCADA and OMS systems ● Cyber security ● Where possible use of existing SCADA and OMS systems for new centralised control operations avoids duplication of infrastructures ● Use of existing systems ensures that devices have a single master! ● Fear of over burdening underlying SCADA infrastructure ● Too many interfaces for small number of control room operators ● Monitoring without control solutions….what actions can the CRO take?! ● Delays in development of commissioning procedure for latest firmware 26 Document Title esb.ie 23/05/2013 EURELECTRIC Policy Recommendations for Active Distribution System Management Per HALLBERG Chairman of EURELECTRIC WG Smart Grids/ Network of the Future, Vattenfall AB EURELECTRIC Smart Grids Projects Academy Brussels, 13th May 2013 Most RES to achieve 20% target by 2020 will be connected to DSO networks According to common assumptions, distributed generation: reduces network peak load and congestion And thereby also network investment needs contributes to the security of supply In reality, distributed generation represents a huge network integration challenge: for grid planning (optimise investments in distribution assets) Source: Capacities announced in 2020 in the national RES action plans for distribution network operation (ensure reliability and quality of supply) 1 23/05/2013 Active System Management would optimize the distribution network by allowing greater interaction between the key network processes Network Planning Long term How DER could contribute to firmness at the planning stage reducing the need for investments? Connection & Access Different levels of connection firmness can reduce investment needs Operation Real time Real time flexibility can improve the use of existing assets Connection & Access New types of network access could also help reduce network investments and make the most of the existing one Variable network access contracts could be one such option DER need to fulfil connection requirements guaranteeing their adequate performance towards the system = capabilities to ensure the operational security standards Source: EWE Netz 2 23/05/2013 Operation Flexibility platforms could play an important role, in particular for close to real-time flexibility Basic system states should be defined to allow for this ‘Traffic lights approach’ Society invests enormous amounts of money in the restructuring of the energy landscape Network infrastructures Support schemes €60 bn for RES in Europe in 2011 Distribution network investments share within overall network investment is expected to rise from 2/3 by 2020 to 4/5 by 2050 *upper range values considered 3 23/05/2013 Distributed energy resources create pressure on DSO business model New system services at DSO level Rules and regulation should be adapted to steer the most cost-efficient system solutions Technical tools for DSO Network planning and access options DER connection requirements # 1 Properly implement existing EU legislation, namely the EED and 2nd and 3rd Energy Packages New system services at the distribution level could be procured by DSOs as ancillary services (e.g. flexibility from DG and consumers to solve grid constraints) OR be defined in grid codes (DER contribution to voltage control/reactive power management and operational information exchange) Market and network operations including examples of possible system services at distribution level Source: EURELECTRIC 4 23/05/2013 # 2 Create an adequate regulatory framework that allows network solutions beyond the traditional approach of ‘investing in copper’ DSOs should be allowed to take into account DER and conventional assets when planning their networks (as required by Article 25.7 of Directive 2009/72/EC) DSOs could design and operate their networks more efficiently if national regulation defines cost-efficiency more broadly They should be allowed to implement the most efficient solutions (the traditional investment solution, the flexibility service-based solution, or a combination of the two) and be remunerated via appropriately designed grid fees However, very few DSOs in Europe have strong and appropriate incentives to invest in Smart Grids Source: EURELECTRIC, Regulation for Smart Grids, 2011 5 23/05/2013 DSO should be able to collect the allowed revenue through network tariffs Network costs are mainly capacity driven Current volumetric (€/kWh) network tariffs do not provide right incentives to customers Network tariff structures should incentivise demand response and energy-efficient behaviour while providing a stable framework for both customers’ bills and DSO revenue 6 23/05/2013 DSO should be able to collect the allowed revenue through network tariffs Network Tariff Type Intelligibility / Complexity Economic efficiency Cost reflectiveness Revenue adequacy (for DSOs with no ex post adjustment) Fixed volumetric (€/kWh) Capacity based (€/kW) Time-of-use volumetric Two-part tariff (€/kW & €/kWh), with flat or ToU energy charge # 3 Make the most of the relevant smart grid demonstration projects and already implemented solutions European Smart Grids Investments (Source: EC JRC 2012/13): DSOs are major investors in Smart Grids €56 Billion to be spent by 2020 €5,8 Billion spent by 2012 on smart grids and smart meters 7 23/05/2013 #3 Don not create additional unwanted barriers to Smart Grids in the network codes instead of exploring synergies Indicative EU-network codes drafting schedule (Source: ENTSO-E) DSO diversity requires a flexible approach # 4 Facilitate the procurement of flexibility from the market. Unlock the potential of aggregation Roles and relationships between new and existing actors should be defined. Existing agents will develop new roles and new agents such as prosumers, aggregators and recharge managers will come into scene. The network codes on system operation and balancing should be designed with a view to facilitating such flexibility markets without foreclosing any market design options. 8 23/05/2013 # 5 Revise access and connection criteria for DER Current priority grid access regimes prevent grid and market operators from implementing cost-effective solutions to avoid grid congestion. Overview of level of priority granted for RES-sourced electricity plants when connecting & using the grid (Source: CEER, 2012) Thank you for your attention! 9 23.05.2013 To a new set of distribution grid tariffs? May 13, 2013 RWE Deutschland SEITE 1 RWE Deutschland SEITE 2 Agenda • Distribution grids – new challenges • Optimal capacity – a regulatory paradigm shift • Smart tariffs – designing incentives 1 23.05.2013 The challenges for DSO are a reality already today MITNETZ STROM: Solarpark Senftenberg, 166 MW RWE Deutschland SEITE 3 The focus is – and for the next decade will remain – in rural distribution grids Generation and demand in Bitburg-Prüm > The distribution grid was built to supply demand. > Distributed generation is concentrated in areas with low demand. > Additional demand (e.g. e-mobility) only later. Demand Generation > Higher degree of simultaneous demand (DSM) only later. RWE Deutschland SEITE 4 2 23.05.2013 Smart solutions address both technical and regulatory issues New challenges… …require smart solutions. > In certain regions decentralised generation exceeding demand. > Grid construction with smart concepts and components. > Increased volatility of generation. > DSO Voltage control. > Variable load flows. > Provision of system services: > Grid construction too slow. > Mandatory use of underground cables. > Voltage control more difficult. > Integration of smart meters. – Frequency control. – TSO Voltage control. – Balancing power. > Optimal grid capacity.: – Decentralised generation. – Demand Side Management. – Decentralised storage. – Complex solutions. RWE Deutschland SEITE 5 dena says that the use of smart technologies has considerable cost reduction potential Netzgetriebene Laststeuerung Reduktion der Stromnachfrage Marktgetriebene Laststeuerung Marktgetriebener Einsatz von Speichern Szenario NEP B 2012 Einsatz innovativer Netzbetriebsmittel Anpassung der technischen Richtlinien Abregelung von EE-Erzeugungsspitzen Netzgetriebener Einsatz von Speichern Vorausschauende Netzplanung Potential for investment cost reduction RWE Deutschland AG DF SEITE 6 3 23.05.2013 Agenda • Distribution grids – new challenges • Optimal capacity – a regulatory paradigm shift • Smart tariffs – designing incentives RWE Deutschland SEITE 7 Regulatory paradigm shift? > Additional and increasingly simultaneous demand as well as a huge increase in distributed generation will pose huge challenges for DSO. > Providing unlimited capacity would result in unacceptably high costs. In the near future this is in particular the case for rural distribution grids, although urban areas will face the same problem in later years. > This opens the possibility for the DSO to use available flexibility of both decentralised generation and demand to limit grid extension. Unlimited grid access Unlimited grid extension Maximum grid capacity Smart grid access vs. Optimal grid extension Optimal grid capacity RWE Deutschland SEITE 8 4 23.05.2013 The cost savings for generation are real: restriction to 70 % of power loses only 2 % of energy Standardised annual duration curve RWE Deutschland SEITE 9 The cost savings for demand are real: up to 42 % less investment in heat pump areas New heat pump areas (100 % penetration) optimized for grid purposes measured standard for domestic customer with electric heat pump standard for domestic customer with electric heat pump Upgraded heat pump areas (100 % penetration) optimized for sales purposes optimized for grid purposes / measured optimized for sales purposes standard for domestic customer with electric heat pump standard for domestic customer with electric heat pump standard for domestic customer with electric heat pump ? kVA* 3,5 kVA* 5,8 kVA* 3,5 kVA* 5,8 kVA* investment costs investment costs investment costs investment costs investment costs ?% 100% 122% 100% 171% 1 2 3 2 4 * with EnEV-Standard 2009. RWE Deutschland SEITE 10 5 23.05.2013 Flexibility is the key: Local and global demand meet supply DSO: local demand for flexibility Grid users supply flexibility TSO or market: global demand for flexibility Voltage control Reactive power Thermal capacity Decentralised generation Decentralised storage Complex domestic DSM Balancing power Wholesale market Customers use flexibility themselves RWE Deutschland SEITE 11 RWE Deutschland SEITE 12 Agenda • Distribution grids – new challenges • Optimal capacity – a regulatory paradigm shift • Smart tariffs – designing incentives 6 23.05.2013 Determination of allowed revenue in smart grids Costs > Smart grid components with shortened life spans must be taken into account. > Introduction of new technologies leads to additional technical and regulatory (!) risks, which have to be compensated for. Benchmarking > Efficiency benchmarks have to reconsider certain quantitative parameters (e.g. line length) and substitute qualitative parameters (e.g. smart interventions). Optimale Leistung Quality > The current measures for distribution grid quality have to be reevaluated as interruptions will to a large part be intentional. > Regulatory micromanagement to determine the optimal grid capacity must be avoided. Instead suitable incentive mechanisms should be implemented. RWE Deutschland SEITE 13 New challenges to distribution grid tariffs > Increase in demand will come later: > Dramatic increase in decentralised generation: – Restructuring and reinforcing the grid on all voltage levels. – While alternating load flows lead to higher peak power levels, energy transported is in steady decline on all voltage levels. Enabling smart grids > Energy efficiency does not help. Higher costs – Increased use of electricity (heating, mobility). More power, less energy – Higher peak power d/t DSM by suppliers. > Use of flexibility limits grid costs: – Suitable incentives must be designed. RWE Deutschland SEITE 14 7 23.05.2013 New opportunities for distribution grid tariffs Two developments All grid users SLP 2 ¼ LW Selected grid users FC 1 FC = Fixed component EC = Energy component PC = Power component PC 1 1 > Smart Grids lead to higher acceptance for power-based components. 2 > Smart meters enable power metering even for domestic customers. EC EC Two alternatives for compensating for local flexibility: > Incentive-based contracts vs. > Dynamic grid pricing. RWE Deutschland SEITE 15 Is dynamic grid pricing really an option? Incentive-based pricing Dynamic grid pricing > Small transaction costs. > Huge transactions costs. > Larger spread for innovative flexibility products offered globally. > Spread will in many cases be siphoned off by grid pricing. > Long-term commitment. > No decision to avoid grid construction possible. > Guaranteed availability. > Mandatory measures (red phase) required. > Stochastic approach increases acceptability for suppliers. RWE Deutschland SEITE 16 8 23.05.2013 The traffic light system The yellow phase The red phase > The DSO uses flexibility on the basis of voluntary contracts with suppliers. > Most grid users are not affected. > The DSO uses flexibility without a contractual basis. > Many grid users may still be unaffected. green yellow red Market Market operation in compliance with the declared time tables and the tolerable control deviation Grid operator coordinates some market operators and actions on a regional / local level Market out of operation Grid No limitations – 100% market-led operation possible, no bottlenecks Voltage or thermal problems •Grid operator uses voluntary agreements including (financial) compensation with some network users to overcome temporary network bottlenecks (i.e. mostly local) •Some network users and their supply companies are unable to fulfil their contracts as planned, but most users are unaffected Grid control to prevent a total or partial black-out Legislation needed Volume of network capacity that is considered to be consistent with a „green light“ Volume of possible bottlenecks that may be dealt with Exact responsibilities, duties and rights of parties with a „red light“ RWE Deutschland SEITE 17 A new set of distribution grid tariffs > Higher focus on the power component (implies a lesser focus on a fixed or an energy component): – Especially for grid users connected to low voltage. – For customers without smart meters (variable) capacity payments. > In addition to the power component a capacity component is needed on all voltage levels. > Energy poverty must not increase d/t new grid tariffs. > Incentive-based tariffs or direct payments better suited than dynamic tariffs. > Keep a clear distinction between the grid and the market sectors. RWE Deutschland SEITE 18 9 23-05-2013 EURELECTRIC: Active Distribution System Management Technical Control Strategy for Active System Management Brussels, May 2013 Automation and Telecontrol Direction Agenda • EDP and EDP Distribuição in brief • Distribution Generation • Technical Control Strategy • Key conclusions Automation and Telecontrol Direction 2 1 23-05-2013 Agenda • EDP and EDP Distribuição in brief • Distribution Generation • Technical Control Strategy • Key conclusions Automation and Telecontrol Direction 3 EDP … From a local electricity incumbent to a global energy player with a strong presence in Europe, Brazil and considerable investments in USA… #1 World leader Electric Sector in Dow Jones Sustainability Indexes #1 Europe hydro project (+3,5 GW under development) #3 World wind energy company #1 Portugal industrial group United Kingdom 21 UK Employees France Belgium USA/ Canada 260 3422 9 330 100% Employees Installed Capacity (MW) Net Generation (GWh) Generation from renewable sources Brazil Employees Electricity Customers Installed Capacity (MW) Net Generation (GWh) Generation from renewable sources Electricity Distribution (GWh) China 中国 Spain Angola Portugal 7252 Employees 6 053 509 Electricity Customers 271 576 Gas Customers 10 992 Installed Capacity (MW) 34364 Net Generation (GWh) 51% Generation from renewable sources 46 508 Electricity Distribution (GWh) 7 138 Gas Distribution (GWh) Poland/ Romania 51 475 621 100% Italy Brazil 2 635 2 831 651 1 874 8 043 100% 24 544 Poland Romania Portugal USA Canada France/ Belgium 34 363 705 100% Employees Installed Capacity (MW) Net Generation (GWh) Generation from renewable sources Italy 14 Employees Installed Capacity (MW) Net Generation (GWh) Generation from renewable sources Spain 2 038 1 015 543 787 869 6 087 15 331 37% 9 517 48 447 Employees Electricity Customers Gas Customers Installed Capacity (MW) Net Generation (GWh) Generation from renewable s. Electricity Distribution (GWh) Gas Distribution (GWh) Employees Automation and Telecontrol Direction 2 23-05-2013 The National Electricity System includes EDP Distribuição as the regulated electricity distribution company acting under a public service concession. EDP is also present in the ordinary and special regime generation market and in the regulated and liberalized retail markets Generation Transport Distribution Commercialization comercial DG (RES) HV network Generation Very HV/ HV DG (RES) μG (RES) MV network MV/ LV HV/ MV EV Automation and Telecontrol Direction LV network EDP Box Customer EV 5 Agenda • EDP and EDP Distribuição in brief • Distribution Generation • Technical Control Strategy • Key conclusions Automation and Telecontrol Direction 6 3 23-05-2013 Integrating a large share of decentralised generation capacities in the distribution network is key for a low-carbon society … Before Now Big Generation Very HV TSO DSO HV MV LV L Big Generation Very HV L TSO DSO L L DG RES L MV L L HV DG RES (μG) L LV L L L L L L L L In order to smoothly integrate distributed energy resources (DERs) a fundamental change in network design is needed L Loads Automation and Telecontrol Direction 7 … and will be essential to deliver on the EU 20/20/20 objectives (Directive 2009\28\EC). Portugal have already achieved 20,5% in 2005 and aims for 31% of share of renewable generation in 2020 Share of Renewables Energy in Gross Final Energy Consumption Automation and Telecontrol Direction 8 4 23-05-2013 In Portugal the total installed capacity is 18,5 GW (2012) where 10,7 GW (58%) is from renewable sources and 6,6 GW (36%) is from a special regime generation (SRG), that is, from distributed resources (DER) Portugal, 2012: Installed Capacity (MW) 18.546 SRG: 6.610 MW (36%) 1.756 All energy comes from SRG must be acepted by TSO and DSO 4.739 Cogeneration Distributed Resources Cogeneration 1.363 5.656 Mini-Hydro 4.194 618 TOTAL Coal Natural Gas Other Thermal (Not RES) Hydro Wind Renewable (thermal) Automation and Telecontrol Direction 220 Solar 9 Distributed generation represents 41% of total energy consumption in Portugal Portugal, 2012: Special Regime Generation to TSO and DSO grids (GWh) Automation and Telecontrol Direction 10 5 23-05-2013 The majority of Distributed Resources are connected to the DSO electrical grid, that is, 65% of installed capacity and 97% of distributed units. Additionally, distributed generation is disperse around the country Portugal: Distributed resources connected to DSO electrical grid More than 4.000 MVA interconnected 5.000 500 4.000 400 + 1.300 MVA beyond 2007 Capacidade Interligada > 100 MVA 5 MVA ≤ Capacidade Interligada < 10 MVA Capacidade Interligada < 5 MVA 3.000 300 2.000 200 1.000 100 Anual (MVA) 10 MVA ≤ Capacidade Interligada < 50 MVA Acumulado (MVA) 50 MVA ≤ Capacidade Interligada < 100 MVA Strong growth on connection to DSO grid 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Ligados no ano Acumulado Automation and Telecontrol Direction 11 Distributed Generation has high impacts on electrical grid… Impacts Reliability • Jitter: Voltage variations are related with circuit impedance seen from the source; • Voltage dips: The largest negative impact is related with sudden unit exit for security reasons; • Losses: Potential loses reduction due to higher proximity between generation and consumption; • Security of supply: DG may postpone grid investment in reinforcement • The reliability of electric grids is very good (close to the 4 "9's"); • The reliability of distributed energy could exceptionally approach 95%; But ... with some kind of combination of network and DG can improve the reliability of the whole system. Automation and Telecontrol Direction 12 6 23-05-2013 Agenda • EDP and EDP Distribuição in brief • Distribution Generation • Technical Control Strategy • Key conclusions Automation and Telecontrol Direction 13 Electrical grid and technical control strategy approach Concepts DMS HV • μGrid: All customers and μG that are connected to a secondary substation; • MGCC: μGrids connected to a MV feeder; • CAMS: MGCC + DG connected to MV MV μGrid CAMS MGCC LV • DMS: Future DMS does not need to have direct access to the data relative to the (possibly innumerous) microsources in every microgrid connected to the MV or LV network. Its purpose is to guarantee system robustness by analyzing data received from network elements positioned at the hierarchical level immediately below (CAMS and MGCC); Legend: Primary Substation DG Secondary Substation Customer (μG) μG (RES) DMS – Distributed Management System; CAMC – Central Autonomous Management System; MGCC – MicroGrid Central Controller; Automation and Telecontrol Direction 14 7 23-05-2013 From technical operation point of view there are 2 major control levels, besides DMS, in the distribution network: i) MGCC – MicroGrid Central Controller and ii) CAMC – Central Autonomous Management System DSO Setpoint DG RES DMS State State HV Setpoint State Setpoint CAMS State State MV Setpoint State DG RES (μG) Setpoint MGCC State State LV • A set-point control strategy is need in order to management the grid at different levels: (LV – MGCC; MV – CAMC) • The MV structure needs to have a updated information regarding MGCC portfolio; • Monitoring phase will allow and effective control/ balance action, even in emergency situations (more demanding); • Communications should ensure data exchange among all elements in the MMG (Multi-microgrids): Monitoring and data acquisition from all elements; Real time generation control; Real-time load shedding; Voltage and frequency control coordination; • DSOs should perform load management measures and direct DSM only when grid stability and power quality are at risk, avoiding that system security is jeopardized. DMS – Distributed Management System; CAMC – Central Autonomous Management System; MGCC – MicroGrid Central Controller; DSM – Demand Side Management; An Active Management Network is possible by sending set-points based on data collect from the grids (MV and LV) allowing an optimal balance and guarantying system robustness Automation and Telecontrol Direction 15 CAMS controls and monitorizes MV network connected to a common primary substation. It is responsible for the fine tune of MV grid operation ensuring grid stability and reliability DSO DG RES Setpoint State DMS State HV Setpoint State Setpoint State CAMS State MV Setpoint State MGCC • At this level it’s essential to have an overall schedule formed and the decision-making process includes the management of DG. CAMS is responsible for: • (i) Critical but not so time-sensitive decisions; Setpoint State DG RES (μG) • Each primary substation HV/MV is a CAMS network element, that is responsible for controlling and monitoring the running operations of each feeder from the primary substation and to report the overall status to the DMS and others CAMS network elements. • (ii) Handle a large amount of data communication; State LV • (iii) Coordinate with secondary substation level (MGCC) to achieve specific functions for a common goal; • (iv) Coordinate with DMS in order to control the amount of DG DER injected that can is necessary to maintain grid stability; • The decisions taken in CAMS level can give rise to a series of effects to sub-level (MGCC). Automation and Telecontrol Direction 16 8 23-05-2013 1,6 GW of Distributed Generation connected do MV network is dispersed around Portugal… (1/2) Automation and Telecontrol Direction 17 1,6 GW of Distributed Generation connected do MV network is dispersed around Portugal… (2/2) Automation and Telecontrol Direction 18 9 23-05-2013 Integration of photovoltaic generation into MV network (Portugal: Porteirinhos 60/30/15 kV, 20 MVA; 28/07/2012) Automation and Telecontrol Direction 19 Generation mix between Wind and Hydro (Generation > Consumption) (Portugal: Varosa 60/30 kV, 50 MVA; Dez. 2012) Note: • 37 MVA Eolic; • 12 MVA Hydro; Automation and Telecontrol Direction 20 10 23-05-2013 A passive network model of unidirectional flows from HV to MV gives place to a network model with bidirectional energy flows of HV to MV or MV to HV depending on energy consumption and generation No or Low DG High DG Components Consumption Generation and Consumption Load forecast Based on the history and seasonality More complexity Load diagrams Load curves stabilized Load variations according to the generation Configuration optimized for long term Increased complexity in the definition of optimized configuration Network configuration Automation and Telecontrol Direction 21 MGCC controls and monitorizes all the microgrids (LV feeder) connected to a common secondary substation. It is responsible for the fine tune of LV grid operation ensuring grid stability and reliability DSO DG RES Setpoint State DMS State HV Setpoint State Setpoint State CAMS State MV Setpoint State DG RES (μG) Setpoint State MGCC State LV • A centralized control (MGCC) is a MGCC network element that is responsible for evaluating the data received from enddevices (such as smart meters); • MGCC analyze the current status of microgrids and take actions in order to guarantee grid connection; • There are two major smart meters type/ features for monitoring and controlling: • (i) DG smart meters: Collects information, as well as monitoring and controlling DG DER power levels and its connect/disconnect status; • (ii) Load smart meters: Aggregates all the resistive and inductive loads. It can also act over specific loads. • For example, a MGCC network element monitors the operation state of secondary substation and sends control instructions to open or close secondary substation breakers for switching between island-mode and grid-connected mode. • The decisions taken in MGCC level need the most timesensitive operations to achieve real time control of the microgrids and enhance the robustness of the power supply. Automation and Telecontrol Direction 22 11 23-05-2013 In the end of 2012, Portugal has 97 MVA of installed capacity in Micro and Mini Generation and these sources have generated 133 GWh Only 0,3% of energy consumption is from micro and mini generation Portugal: MicroGeneration (<3,68 kW) Enough to ensure public lighting in 3 major municipalities of Portugal Portugal: MiniGeneration (<250 kW) Automation and Telecontrol Direction 23 81,3 MW from microgeneration are connected to 14k secondary substation (22% of total). For operation and security reasons it’s not allowed to connect over 20% of installed capacity per transformer Portugal: Micro and Mini Generation (<3,68 kW) - LV Portugal: MiniGeneration (<250 kW) - MV 206 minigenerators conected to MV grid (15,7 MW) Secondary Substation (%P uG/transformer) 21.823 micro and minigenerators conected to LV grid (81,3 MW). Note: 238 minigenerators with 4,1 MW Automation and Telecontrol Direction 24 12 23-05-2013 EDPD needs to invest 1,5 M€ per year in network reinforcement to be able to accept 81k microgeneration units predicted for 2020 Challenge • The increasing availability of microgeneration can have an impact in LV grids if these units impose voltage levels above regulation levels (±10% at connection point). Study approach • Regarding reference networks, microgenerators were connected at different points to assess the network behavior in the presence of these charges. This analysis aimed to determine the average cost per microgenerator; • The values obtained per reference network were aggregated in order to obtain the weighted average cost of connecting a microgenerator with the LV network. Result • In this scenario, it may be considered a constant investment associated with a constant microgeneration growth, with a value of about 1.5 M€ per year. LV grid (kVA) # Secondary Substations # Clients # Microgeneration units (2020) Average cost per unit (€) Investment in grid reinforcement (M€) Automation and Telecontrol Direction 25 KEMA study request by ERSE focus on the impact of DG on MV and LV grids. 3 scenarios were analyzed in order to show the investment necessary to accommodate DG that strongly depends on several factor as DG penetration, location and concentration as well as operating regimes MV: <16% MV: <8% LV: < 25% LV: =75% • The results shows that a very significant investment costs can be avoided if the allocation of DG is realized under tighter criteria, thus empowering the DSOs and limiting the option of promoters; • Under a more liberal regime for DG allocation, the investment is significantly higher, unless the operator adopts an Active Network Management (ANM) regime based on monitoring/ control/ communications systems; • The implementation of an ANM solution for voltage control allowed total Capex (total investment in 10 years horizon) savings above 100 M€ for the most critical situations; Without grid constrains (i.e. maximum of µG per SS) an active management strategy is needed in order to avoid high investments (10 M€/ year) Note: • • • Reference/ BAU: • MV: i) Location: the ratio between the rated power of each MV DG unit and the minimum short-circuit power at Point of Common Coupling (PCC) is lower or equal to 8%; ii) Concentration: one unit per MV feeder; • LV: i) Location: at the customer; ii) Concentration: total microgeneration capacity installed in each LV network is lower or equal to 25%; There is no guarantee under the massive presence of DG and therefore other very relevant costs need to be taken in consideration (beyond scope); These costs relate to conventional generation necessary to maintain system security or transmission infrastructure reinforcement; Automation and Telecontrol Direction 26 13 23-05-2013 KEMA study request by ERSE focus on the impact of DG on MV and LV grids 3 scenarios description for 2020 horizon Study of the Impact of Distributed Generation on the National Electrical System Request by ERSE (Portuguese Regulator) Description of the 3 scenarios for 2020 horizon Reference/ BAU • The presence of DG on the MV and LV is moderate much like nowadays; • Load: 72,189 GWh (41% SRG; 29% SRG renewables); • Power: 10,5 GW (28% on MV and LV grid); Scenario 1 • Suppose a very significant presence of DG on MV grid; • Load: 68.154 GWh (52% SRG; 40% SRG renewables); • Power: 12,2 GW (34% on MV and LV grid); Scenario 2 • Suppose a very significant presence of DG on LV grid; • Load: 68.154 GWh (52% SRG; 40% SRG renewables); • Power: 13,7 GW (41% on MV and LV grid); (MV focus) (LV focus) Automation and Telecontrol Direction 27 InovGrid project is a solution that connects all levels: i) Client - EDP Box (EB), ii) SS Distribution Transformer Controller (DTC), iii) PS - Smart Substation Controller (SSC) and iv) Central Control Systems HV Dispatch (Oporto) CPD Data (Ermesinde) Center (Ermesinde) MV Dispatch (0porto) DTC Automation (Primary Substations) Automation and Telecontrol Direction Displays EV Home Automation 28 14 23-05-2013 LV Monitor is a national project between EDPD, EFACEC and INESC, financed by QREN, to develop solution for monitoring and control LV networks. Project main goals are to develop solution for dynamic control of microgeneration and detect and locate faults in LV grid • Development and implementation of advanced algorithms to calculate the optimal set-points to send to the coordinated control of microgeneration units; • Development of a photovoltaic controller that interface with the secondary substation. It will allow the fine tune and dynamic power set points to microgeneration unit; • Development of a communication protocol between: i) electrical grid elements and photovoltaic controller and ii) photovoltaic controller and inverter; • Development of algorithms for photovoltaic controller for effective dynamic control of micro-inverters; Automation and Telecontrol Direction 29 Agenda • EDP and EDP Distribuição in brief • Distribution Generation • Technical Control Strategy • KEMA study (Portugal) • Key conclusions Automation and Telecontrol Direction 30 15 23-05-2013 DSOs have to decide on the most efficient investments in order to cope with the forecasted future demand and the connection requirements of new distributed generators Macro conclusions • ANM implementation that uses monitoring and control systems to deal with voltage variations is compulsory; Active • Hierarchical system based on a set-point control strategy is need in order to management the Network grid at different levels and allowing grid fine tune; Management • Strong communication infrastructure is needed to ensure communication with all grid elements, namely on micro grids; DG integration (Portugal) • To integrate the number of microgeneration units predicted for 2020 (81.500) it may be considered a constant investment associated with a constant microgeneration growth, with a value of about 1.5 M€ per year; • Research projects and pilots like “LV Monitor” allow EDPD to develop solution for dynamic control of microgeneration and faults detection in LV grid; • MV and LV grids may require more or less significant investments depending on several factors such as DG location and centration; • There are efficient ways to adapt them and enable DG integration with minimized cost though the employment of active management strategies (possibility to avoid 100 M€ investment); • The relaxation of DG interconnection requirements should be made dependent on the degree of IT and distributed sensors implementation (i.e. smart grid) Automation and Telecontrol Direction 31 Thank you for your attention Francisco Melo EDP Distribuição francisco.melo@edp.pt Automation and Telecontrol Direction 32 16 EURELECTRIC SMART GRID PROJECTS ACADEMY Dynamic Optimization Of Medium Voltage Grid (ZUQDE- industrial research project) Albana ILO 3rd Workshop: Smart Distribution Management Monday, 13 May 2013 Smart Grid Overall Model ZUQDE Zentrale Spannungs- (U) und Blindleistungs- (Q) Regelung Dezentraler Erzeuger Central Volt/Var Control in presence of DG’s Brussels, 13 May 2013 The Energy Supply Chain Net An “Energy Supply Chain Net” is a set of automated power grids, intended for links, which fit into one another to establish a flexible and reliable electrical connection. Each individual link or a link-bundle operates independently and have contractual arrangements with other relevant boundary links, link-bundles, and suppliers which inject directly to their own grid. Under specific conditions each automated power grid or a couple of them can split, thus creating a “Microgrid” and vice versa. Brussels, 13 May 2013 Voltage Control The Energy Supply Chain Net Actually Transmission HVG HVG Distribution ~ High voltage allowed limits ~ HVG HVG ~ ~ MVG MVG ~ ~ Medium voltage allowed limits MVG MVG LVG LVG LVG LVG Brussels, 13 May 2013 Low voltage allowed limits ZUQDE – project control scheme imbedded in the „Energy Supply Chain net“ net model Primary control Transformer Tap Normal operation HVG HVG ~ High voltage allowed limits static constraints ZUQDE Server + Ubus ~ MVG MVG - ~ ~ G MV-Limits cos-Limits DSSE Primary Control Reactive power +- VVC Closed Loop Control Uset point Qset point cos TR . . . Primary Control Reactive power LVG LVG P, Q, U, … Control Center Brussels, 13 May 2013 Medium voltage allowed limits G Lwo voltage allowed limits ZUQDE Zentrale Spannungs- (U) und Blindleistungs- (Q) Regelung Dezentraler Erzeuger Central Volt/Var Control in presence of DG’s Brussels, 13 May 2013 ZUQDE Zentrale Spanungs (U) – Blindleistungs (Q) Regelung Dezentraler Erzeuger Project data •Start: 01.07.2010 •End: 30.04.2012 •Funded by: New Energy 2020, Austria •Total budget: ~0.55 Mio. Euro •Partners: Salzburg Netz, Austria Siemens, Austria Brussels, 13 May 2013 Demonstration region Lungau Voltage level 110kV; 30 kV; 10 kV Maximal Load ~ 23 MW - Winter Decentralised generation ~ 5.6 MW - Hydro power plant - Spring & Summer Line length - Cable structure MOTIVATION Further decentralised generation is required Challenge to keep the voltage with in the limits Brussels, 13 May 2013 389 km 38 % Voltage/var control based on distribution systems state estimator Un ± 7% + DSSE Ucal (1) ... Ucal(n) Voltage / var control U 138 kV 4 DGs are participating in controlling process P, Q LTC 13.8 kV installed power 3.67 MW I I I P, Q Fuse upgraded with var controller ∼ P1, Q1 ∼ P, Q, U measurements Pi, Qi Cabel ∼ Pm, Qm Brussels, 13 May 2013 0. 4kV Distribution System State Estimator Minimum data needed to realise closed loop R, X, … of lines, transformers, … Load profiles Real time measurements -U in HV bus bar -P, Q in feeder level -P, Q in controlled DGs Usage of data validation tool Results Very accurate voltage calculation P, Q, U, … calculated for every element Execution time 49 ms Brussels, 13 May 2013 Project control scheme Primary control Transformer Tap ZUQDE Server + Ubus - G MV-Limits cos-Limits DSSE Primary Control Reactive power +- VVC Closed Loop Control Uset point Qset point cosTR . . . Primary Control Reactive power P, Q, U, … Control Center Brussels, 13 May 2013 G Features of MV- controlling schemas Secondary control Uset point VVC Closed Loop Control Qset point Primary control Uset point Uset point Qset point Different optimization objectives: - violation alleviation - loss minimization - load reduction (Conservative Voltage Redaction) cos() constraints in HV/MV crossing Tap’s coordination in different voltage levels Master/Slave principle Coordination with primary control Elaborated order proposal to move the system from one status to the other one without violations Calculation time ~7.5 sec Cyclic time 1 – 15 min Brussels, 13 May 2013 + Qset point _ + _ G Keep the voltage/ reactive power to the set point Work independently in absence of secondary control Appropriate reaction for very fast voltage changes (LTC’s) Maximal reaction time 4 sec Time constants 2-4 min Voltage profile Generator is participating in secondary control process Generator is not participating in secondary control process Q = 0 kvar Brussels, 13 May 2013 Q = 1070 kvar capacitive Dynamic controlling area Brussels, 13 May 2013 Closed-Loop operation results Load drop compensation 32,5 [kV] 32 Operation limits 31,5 Limits 2 1 3 31 Operation limits Limits 31,5 1 31 4 30,5 Only violation alleviaton 32,5 [kV] 32 Limits 29,5 Operation limits 29 0 10 20 30 40 [km]50 Nominal Limits 29,5 Operation limits 29 0 10 20 Limits 31,5 1 2 30,5 3 4 30 30 Operation limits 31 2 30,5 Nominal Conservation voltage reduction 32,5 [kV] 32 30 Brussels, 13 May 2013 40 [km] 50 Nominal 30 4 3 Limits 29,5 Operation limits 29 0 10 20 30 40 [km] 50 Conservative voltage reduction Identification of voltage reduction potential Time Load Voltage reduction [%] Load reduction [%] Energy saving potential 07:03.2012; 15:38 Maximal load 4,33 6,53 07:03.2012; 16:00 Normal load 4,67 7,06 From literature* "1% reduction in voltage results in , on average, a 0.4 - 1 % reduction in energy consumption" 08:03.2012; 21:37 Minimal load 4,33 4,67 08:03.2012; 22:13 Night current 4,33 6,57 expected circa 2% energy saving * MEASURING THE EFFICIENCY OF VOLTAGE REDUCTION AT HYDRO-QUÉBEC DISTRIBUTION, IEEE 2008 Brussels, 13 May 2013 Conclusion Dogma „garbage in, garbage out“ is cleared out Presence of DGs is increasing the distribution network flexibility and makes possible the realisation of different controlling schemas Dynamic optimization of distribution networks with a minimum of real time measurements is realistic The conservation voltage reduction can be applied smoothly Using DGs to control the system voltage can lead to operation at poor power factor Brussels, 13 May 2013 Since January 2012, the medium voltage network in region Lungau in Salzburg, Austria is continuously operated in closed loop. Brussels, 13 May 2013