Demand Response for System
Operation in Spain.
23th June 2011
Overview of the presentation

Who is REE?

Spanish energy context

The challenge of the Demand Side Management

Demand Response experiences

Conclusion
2
Who is Red Eléctrica de España?
Red Eléctrica is the Spanish transmission system operator (TSO)
• Red Eléctrica was the first company in the world
dedicated exclusively to power transmission and the
operation of electrical systems. A pioneer in its field,
the company occupies a position of leadership today
in these activities.
• Red Eléctrica is the first European TSO establishing
a Demand Side Management Department in
coherence with its commitment of the development of
a smarter electric grid adapted to the next decade
challenges
3
TSO functions
Spanish electric system. TSO functions:
 To ensure the security and continuity of power supply, keeping the instantaneous balance
between generation and demand.
 To design, develop and maintain transport network.
Residential
consumption
(low voltage)
Thermal
generation
REE Control centre
Distribution
substation
Hydro generation
Distribution
network
Transport
network
Wind power
Transport
substation
Industrial
consumption
(high voltage)
4
Overview of the presentation

Who is REE?

Spanish energy context

The challenge of the Demand Side Management

Demand Response experiences

Conclusion
5
Energy context
The 20/20/20 European Strategy is the key driver of the Spanish energy model change
20 / 20 / 20 Strategy
20%
reduction
in GHG
emissions
20% of final
energy
coming
from
renewables
20%
reduction in
primary
energy
consumption
 Renewable energy development and
efficiency improvement
involve a
reduction in GHG emissions.
 Renewable energy integration in the
electric system leads to an improvement
in the system global efficiency.
6
Towards a new energy model
Fulfilling European objectives need a change in order to move to a new energy
model.
Demand side management
Electric vehicle
Huge use of renewable
energy
Energy storage
Distributed generation near
end users
Fossil fuels cleaner use
7
Spanish energy context
Spanish electric system is still dependant on fossil fuels, but presents a continuous
introduction of energy coming from renewable sources.
2010 generation share
Spanish generation share evolution
16%
CHP
Solar
6%
49%
Wind
70%
Combined Cycle
60%
Fuel-Oil
Hydro
Coal
50%
Fuel-Gas
Nuclear
Fuel-Gas
40%
Hydro
Coal
Fuel-Oil
30%
Other RE
Fuel-Gas
Combined Cycle
20%
Coal
13,5%
Hydro
22,2%
15,2%
22,2%
15,2%
23,4%
0,0%
0,0%
15%
Fuel-Oil
Wind
8,0%
23,4%
Biomass
Nuclear
13,5%
17,1%
8,0%
Combined
Other RECycle
Wind
0,7%
90%
80%
14%
17,1%
Mini Hydro
100%
Other RE
Wastes
10%
Nuclear
0%
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
0,7%
Combined cycles, nuclear and wind
were the most used technologies in
2010.
In recent years has increased the participation of wind and
combined cycles, basically at expense of production based in
coal.
8
Overview of the presentation

Who is REE?

Spanish energy context

The challenge of the Demand Side Management

Demand Response experiences

Conclusion
9
The challenge for the system operation
As a TSO, Red Eléctrica manages a daily load shape which presents high ratio peaks vs offpeak demands.
1
High ratio peak
vs off-peak
On some occasions wind
production is curtailed, when
demand is very low and
interconnection capabilities
are very limited
2
Low demand level
2
High wind energy
production
10
Challenges caused by the evolution of electrical
demand
45.000
2006
2007
2008
2009
2010
44.000
MW necesarios
43.000
Nº de horas de
mayor consumo
42.000
15
120
300
41.000
2006
1.403
2.685
3.884
2007
2.507
5.018
6.397
2008
1.152
3.063
4.098
2009
1.545
4.228
5.988
2010
1.090
3.329
4.709
40.000
39.000
38.000
1
51
101
151
201
251
4.700 MW where needed in 2010 only for the 300 hours with higher demand
11
The challenge for the system operation
High growth for the installed wind and solar power in the next years
Integración y vertido de renovables en el sistema - Horizonte 2016
Renewal energies in 2016
50,000
40,000
• 29.000 MW wind power
• 10.000 MW solar power
MW
30,000
30.000
25.000
20,000
10,000
MW
20.000
-
15.000
10.000
-10,000
5.000
2.016
2.009
2.008
2.007
2.006
2.005
2.004
2.003
2.002
2.001
2.000
1.999
1.998
1.997
0
Min R.O. Necesario
RE Mini-hid.
2016 Eficiente
Hid. Fluyente (medio)
RE Solar FV
Vertido E
RE Cogen.
RE Termo-Solar
Dem. Efi. + Export. + Bomb.
RE Bio-RSU-RSI
Eolica 3
Evolution of the wind power instalated
12
What does it means Demand Side Management?
Demand Side
Management (DSM)
means the planning
and improvement of
measures aiming to
impact in the way
that energy is
consumed, with the
objective of changing
the demand load
shape
13
DSM measures
Improvements in
the efficiency of
products and
processes
Increasing public
awareness of
energy efficiency
4
Time of use tariff
Pumping
Demand participation in
electricity markets
Future storage
technologies
Electric vehicles
22:00
20:00
18:00
16:00
14:00
12:00
10:00
08:00
06:00
04:00
Demand reduction on
the Electrical System
peak hours
02:00
22:00
20:00
18:00
16:00
14:00
12:00
10:00
08:00
06:00
04:00
02:00
High demand on off
peak
00:00
22:00
20:00
18:00
16:00
14:00
12:00
10:00
08:00
06:00
04:00
02:00
Movement of demand
from peak to off peak
00:00
22:00
20:00
18:00
16:00
14:00
12:00
10:00
08:00
06:00
04:00
02:00
00:00
Demand reduction
3
00:00
2
1
Industrial Demand
management:
Interruption Service
Automated
management of
electrical loads
14
Key elements to drive the DSM challenge
Four drivers are essential to change the load shape
1
2
Information
 “We cannot
change what we
do not know”
 Dissemination of
energy efficiency
best practices
3
Prices
 Need to apply time
of use prices to
make the final
consumer sensitive
to the real cost of
energy and when
this energy is
consumed
Automation
Regulatory
 Automation that
 Clear objectives
 Minimum
allows the
implementation of
DSM measures
(Home automation,
Smart Grid,
network driven
DSM,…)
regulatory
framework that
allows the
development of
energy efficiency –
oriented markets
15
Overview of the presentation

Who is REE?

Spanish energy context

The challenge of the Demand Side Management

Demand Response experiences

Conclusion
16
Demand Response
Demand Response products, can be used not only to solve secutiry issues
but also to help the energy efficiency of the whole system
Price-Based Demand Response
energy
DSM
efficiency
load
commitment
timescales
Other
DSM
years
system
planning
activities
time-of-use
rates
day-ahead hourly
pricing (RTP)
Long
term
months
operational
planning
operational
planning
commitment
Day-ahead
day-ahead
economic
economic
scheduling
scheduling
real-time hourly
pricing (RTP)/CPP
power &
load
reduction
delivery
Day-of economic
day-of
economic
dispatch
dispatch
<
<<
15
15
15
min
min
min
min
<<15
15
min
dispatch
capacity/ancillary
services programs
demand bidding/
buyback
emergency
programs
interruptible
programs
Incentive-Based Demand Response
Fuente: Measurement, Verification, and Forecasting Protocols for Demand Response Resources. NARUC-FERC Demand Response Collaborative
direct load
control
17
17
Demand Response
DR services are normally calssified in two groups attending to mechisms
used to promote the response
Productos
Definición
Incentive-based Programs
This programs relies on incentives to the reduction on
the demand in addition to the electric tariffs which can
be variable depending on time or not. The load
reduction happens when the operator needs to reduce
the load of the system






Direct Load Control (DLC)
Interruptible/curtailable rated (I/C)
Demand bidding/Buy-back programs (DB)
Emergency Demand Response Programs (EDRP)
Capacity Programs (CAP)
Ancillary Services markets program (A/S)
Time-based rates
Electricity prices varies depending on production costs,
users are not obliged to reduce their demand if they are
asked to.
 Time-of-use (TOU)
 Critical peak pricing (CPP)
 Real-time pricing (RTP)
Source: Coordination of Energy Efficiency and Demand Response, A Resource Of The National Action Plan For Energy Efficiency. U.S. Department of Energy
18
18
Interruptibility service
The interruptibility service is a demand management tool which gives a
rapid and efficient response to the needs of the electricity system in
emergency situations. It consists on reducing the active power demanded to
a required residual power level (firm power level), in response to a power
reduction order issued by Red Eléctrica de España, as system operator, to
consumers subscribed to this service.
Demand program
Order
duration
Firm power level
19
Industrial demand management
REE enable a higher flexibility of the demand through the management of 10 % of
the national demand.
1
1
FlexibilitySiderurgia
power that REE can interrupt
on critical moments (between 2.000 and
2.500 MW)
2
Papel
2
Cemento
Load shape adaptation
Shift of the demand from the system
peakQuímica
to the system off-peak
Perfil de consumo de los suministros interrumpibles durante un día característico de invierno (21/01/2009)
155 providers of the interruptibility service provide flexibility and load shape
adaptation to the system in critic moments.
20
Sectorial analysis
155 Interruptibility providers are grouped in industrial sectors in order to get a
better comprehension of their consumption.
1.57%
4.45%
5.57%
0.65%
SIDERURGIA
0.34%
7.86%
43.89%
8.89%
26.77%
METALURGIA
• Metallurgy and Iron and steel
CEMENTO
industry represent more than 70%
of the total interruptible demand.
QUÍMICA
PAPEL
GASES INDUSTRIALES
VARIOS
• Cement, Paper, Chemistry or
Industrial Gases have also a
considerable percentage of the total
demand.
MADERA
VIDRIO
21
Communication scheme
The Communication, Implementation and Control System for Interruptibility Service
(SCECI) consists of the intercommunicated equipment that implements service
interruption orders and their follow up to determine compliance.
REE
• Management System (SGSCECI) that forwards service
interruption orders.
• Metering, Communication and
Control Equipment (EMCC) set
up in consumers to manage
interruption orders.
Providers
22
New tools for system operation
New operation tools for the management of the DSM industrial services.
23
GAD project
Targets
1
5
¿What loads?
¿Economical
and regulatory
model?
2
7
4
¿Algorithms?
6
3
¿System
operation?
¿What
customers?
¿What
appliances ?
Distribuidor
¿Architecture?
24
Loads and appliances
Transformer
equipment
(ORBIS)
User interface
(ORBIS)
Plugs and smart
lines(ZIV)
Smart meter (ZIV)
Smart appliances
(FAGOR – ALTRA)
Load controller
(ORBIS)
25
Management tools
New tools for demand management (GAD project)
26
26
Some results for REE
For REE, GAD services may become a very relevant operational tool helping to improve efficiency
of spanish electric system
120,00
Situación Base
MW
Respuesta a orden de reducción
100,00
80,00
Response to
technical signals
60,00
40,00
20,00
22:00
20:00
18:00
16:00
14:00
12:00
10:00
8:00
6:00
4:00
2:00
0:00
22:00
20:00
18:00
16:00
14:00
12:00
10:00
8:00
6:00
4:00
2:00
0:00
-
Response to
price signals
27
Overview of the presentation

Who is REE?

Spanish energy context

The challenge of the Demand Side Management

Demand Response experiences

Conclusion
28
Conclusion
Demand side management will have a key role in the future system operation
Electricity offer
Electricity Demand
Industrial Demand
Management
Higher integration of smaller scale
and intermittent generation from
renewable energies
Forecast and
operation tools
Integration in Control
Center
Storage
Electric vehicle
Information
29
The future of the Electric System
“Smart Grid” is the process “to transform the functionality of the present
electricity transmission and distribution grids so that they are able to provide a
user-oriented service, enabling the achievement of the 20/20/20 targets and
guaranteeing, in an electricity market environment, high security, quality and
economic efficiency of electricity supply” (ENTSOE)
Residential
Thermal
generation
consumption
Smart
meters
(low voltage)
Storage
Electric
Vehicles
REE Control centre
Shifting
Transformers
Hydro generation
Distribution
substation
Distribution
network
Transport
network
Wind power
Transport
substation
Renewable
Energy
Industrial
consumption
(high voltage)
Demand Side
Management
30
31
31