Opening session: the Spanish TSO experience on renewable integration March 2011 Dirección de Operación Contents Spanish TSO presentation Overview of the Spanish electric sector Current regulatory framework of Spanish renewable units Challenges RED ELÉCTRICA DE ESPAÑA Who is Red Eléctrica? Red Eléctrica de España (REE) is the Spanish transmission system operator (TSO) REE is operating the mainland system and the island systems REE was the first company in the world dedicated exclusively to power transmission and the operation of electrical systems. RED ELÉCTRICA DE ESPAÑA Red Eléctrica de España (REE): Mission and principles. Operates the system to guarantee the power supply. Since 2006 also in the extra-peninsular systems Designs, builds and maintains the transmission network. Since 2007 as exclusive transmission company SHARE CAPITAL (Aprox.): FREEFLOAT 80% Transmission Grid Main magnitudes (SPPS) Lines SEPI 20 % Subst. SEPI: Spanish Stated Owned Holding Company Closure 2010 400 kV [km ct] 18,576 220 kV [km ct] 17,221 Transformers 400/X kV [MVA] 69,059 220 & 400 kV [nº bays] > 3,500 It has proved fundamental for the fast and secure implementation of electricity market and integration of RES 4 RED ELÉCTRICA DE ESPAÑA Spanish transmission system REE: Spanish Transmission System Operator. 34000 km of lines and 60000 MW of transforming capacity. Spanish peak demands 45 GW and off-peak demands of 19-25 GW. Planned reinforcements 2009-2016, partly due to RES integration: Sp e cific in frastru ctu re W h o le p lan n e d in frastru ctu re Lin e s an d cab le s Lines and cables N e w New o n e ones s [k m[km] ] Re fittin g [k m ] Refitting [km] Substations Su b statio n s New bays N e w New b ay ssubstations ofnsubstations N e w Extension su b statio s Ex te n sio n o f su b statio n s Transformers Additional capacity [MVA] Tran sfo rm e rs Whole planned To tal 400kV infrastructure 220kV Total 1265612656 8308 8308 400kV 7488 7488 3850 3850 220kV 5168 5168 4458 4458 Specific planned p lan ninfrastructure e d to in te grate RESto integrate RES To tal 400kV 220kV Total 400kV 220kV 4465 4465 3504 961 3504 961 1730 1730 Total 400kV 220kV Total 400kV 400kV 220kV To tal 400kV 3476 1163 2313 3476 399 1163106 2313 293 39 20 329 399 405 106 76 293 39 59 2018 To tal 405 76 329 Total 400 / 220 kV 400 / 132 kV 68540 52450 16090 59 220kV 220kV 18 19 41 19 41 Total 400 / 220 kV 400 / 132 kV 5305 3500 1805 To tal 4 0 0 / 2 2 0 kV 4 0 0 / 1 3 2 kV To tal 4 0 0 / 2 2 0 kV 4 0 0 / 1 3 2 kV Reactances and Capacitors A d d itio n al cap acity [M V A ] 68540 [MVAR] Total 52450 3900 400kV5305 16090 2800 3500220kV 1100 Re actan ce s an d C ap acito rs To tal 400kV 220kV [M V A R] 3900 2800 1100 Highlighted lines correspond to planned lines from 2008-2016. 1805 RED ELÉCTRICA DE ESPAÑA Spanish inteconnection capacity Interconnection capacity compared to installed capacity FR ES =1,5% PO ES = 1,5% 50 45 40 35 30 25 20 15 10 5 0 Potencia Inst. ESPAÑA = 94 604 MW MA ES = 0,6% Limited interconnection capacity with France, security link with the European Interconnected system. In practice almost an “electrical island”. UE 10% RED ELÉCTRICA DE ESPAÑA Spanish energy context The 20/20/20 European Strategy is the key driver of the Spanish energy model change 20 / 20 / 20 Strategy The development of renewable energy 20% reduction in GHG emissions 20% of final energy coming from renewables sources and the reduction in consumption imply a reduction in GHG emissions. 20% reduction in primary energy consumption Renewable energy integration into the electric grid produces an improvement in the system efficiency. 7 RED ELÉCTRICA DE ESPAÑA Installed capacity January 2011 Technology Solar Biomass Mini-hydro CSP 0,7% 2,1% 0,7% Cogeneration 6,2% Solar PV 3,8% Waste Treat. 1,3% Hydro 17,5% Nuclear 7,8% Wind 20,9% Coal 11,3% Combined cycle 25,8% Fuel-Gas 1,9% Hydro-power MW 16 657 17.5 Nuclear 7 .455 7.8 Coal 10.789 11.3 Fuel-Gas 1 849 1.9 Combined cycles 24.641 Total (ordinary regime) 61.391 25.9 64.3 Wind power generation 19976 20.9 Solar PV 3.634 3.8 Solar CSP 630 0.7 Biomass 684 0.7 Special regime hydro 1 965 2.1 Cogeneration 5 946 6.2 Waste treatment 1 204 1.3 Total (special regime) 33.791 35.7 Total 95.430 % RED ELÉCTRICA DE ESPAÑA Demand supply 2010 260.230 GWh = 189.071 Net Ordinary Regime + 90.513 Net Special Regime -4.412 Hydro-pump storage -8.338 International exchanges Solar Small Hydro 2,4% 2,40% CHP and other RES 12,8% Hydro-power 14,0% Special Regulation Regime Nuclear 21,6% Wind 15,6% Combined cycle 23,0% Coal 7,6% Renewable: Non Renewable: Minihydro Cogeneration Biomass Coal Wind Fuel - Gas oil Industrial waste Refinery gas Urban waste Solar Fuel-Gas 0,6% Natural gas RED ELÉCTRICA DE ESPAÑA Present wind power capacity and evolution Installed Wind power generation evolution 1996-2010 22.000 19.976 20.000 18.390 15.873 18.000 13.908 16.000 MW 14.000 11.099 9.653 12.000 8.304 10.000 6.138 8.000 4.927 6.000 3.442 2.298 4.000 kW/km2 1.525 2.000 183 428 798 0 Installed Wind Capacity January 2011 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Renewable Energies’ Plan for Spain (August 2005): ~20,000 MW by the year 2010. Official Network Planning for 2016 contemplates ~29,000 MW. Renewable Energies Plan for Spain 2010-2020 ~38,000 MW. 10 RED ELÉCTRICA DE ESPAÑA Development of the Spain-France Interconnection: A priority Spain –and Portugal- form a peninsula, also electrically, with weak electrical interconnections with the rest of European Union. - Development of Spain-France Interconnection with a new 2 x 1000 MW DC underground line -1st step for objective of 4.000 MW of commercial capacity -Necessary for building the IEM -Fundamental for RES integration in Spain -(& Portugal) 11 RED ELÉCTRICA DE ESPAÑA Current regulation: RD 661/2007. Rights and Duties Rights To deliver energy to the grid through the distribution company or to sell it in the market receiving regulated retribution (regulated tariff or premium) Priority of access to the grids. To deliver all the produced energy Duties To deliver energy in suitable conditions which doesn’t cause disruptions in the system. To be adhered to a generation control center. (Power Plants > 10 MW). This control center will be the intermediary and speaker with the System Operator To carry out the rule about avoiding the problem of tension holes1. It’s a condition to receive the regulated tariff or premium. (1) Operation Procedure 12.3. This is a problem which occurred with the old wind machines. RED ELÉCTRICA DE ESPAÑA Economic Regime in current regulation: RD 661/2007 Possibilities To deliver the energy to transmission or distribution network with a regulated tariff (c€kWh) To sell the energy in the market: Retribution= Market price + premium Regulated tariff Fixed amount of money for all periods for each type of energy Hydroelectric, biomass, biogas: they could have hourly discrimination. Market : Retribution= Reference Price + Premium Cup and Floor are established for the total amount of price+ premium Premium is variable: Total amount to receive > Cup and > Floor. Power Plants >50MW must go the market RED ELÉCTRICA DE ESPAÑA Market integration of wind energy 140 120 (€/MWh) 100 80 60 40 20 0 0 10 20 30 40 50 60 70 80 90 100 110 120 Marginal Market Price (€/MWh) Wind Market Price (€/MWh) Wind Bonus (€/MWh) Fixed tariff price Possibility of accessing the daily wholesale market and updating the schedules in the intra-day markets according to new production forecasts. As for any type of generation, agents are penalized for their deviations and pay for the balancing energy needed to counteract their deviation. Reserve bands are calculated by the TSO and paid by the final consumers. 14 RED ELÉCTRICA DE ESPAÑA RD 661/2007. Economic Regime For renewable energy there is a retribution table for the first 25 year and other for after. c€/kWh Wind Onshore Wind Offshore Regulated Tariff Reference Premium 7.8183 3.1273 9.0004 c€/kWh After 25 years Wind Onshore Limits Superior Inferior 9.0692 16.9494 7.6098 Regulated Tariff 6.5341 Wind Offshore For photovoltaic it isn’t possible to go to the market, there is only tariffs: Fotovoltaic c€/kWh <100 kW 47.0181 100 kW-10 MW 44.5751 10-50 MW 24.5311 RED ELÉCTRICA DE ESPAÑA Recent modifications of regulation for SRG Recently, National regulation oriented to control of generation to be connected per year, securing economic and technical sustainability RD1578/2008 for Solar FV, extending RD661 objectives with quotas of 500-400 MW per year with progressive reduction of tariffs emphasis on roof plants over floor plants RDL6/2009 for the rest of SRG, establishing quotas per year for plants to be commissioned (upto ≈ 2,5 GW Solar Thermal in 2013; upto ≈ 23 GW WP in 2012), demonstrating some pre-requisites: Access and connection authorization issued by REE or distribution company Administrative authorization for power plants > 100 kW License for Commissioning Deposit of a bank guarantee (for wind: 20€/kW; for Solar Thermal: 100€/kW) Financial resources at least for 50% of the total Purchase -or contract- at least for 50% of the equipment Authorisation for gas access and water supply (when applicable) RED ELÉCTRICA DE ESPAÑA Photovoltaic updatings. RD 1578/2008 Installed power: It will be updated every year The Register of Pre-establishment of retribution is created to enter all of the requested power plants. A quota of installed power is established for the first year and it will be updated. First year: Facades: 267 MW Floor : 133 MW Retribution: c€/kWh Type I Type II RD 1578/2008 <20 kW 34 >20 kW 32 All 32 RD 661/2007 <100 kW 100 kW-10 MW 10-50 MW 47.0181 44.5751 24.5311 RED ELÉCTRICA DE ESPAÑA Development of Special Regime Regulation 1980 Act 82/1980, determines, for the first time, distributors obligation of purchasing renewable energy at a regulated price for 1994 R.D 2366/1994, establishes a new regulation for special regime 1998 R.D. 2818/1998, adequates special regime regulation to new Act 54/97, of electric power system 2002 R.D. 841/2002, regulates and incentives special regime participation in generation market 2004 R.D. 436/2004, merges all the existing regulationa and defines a new economical framework for special regimen 2007 R.D. 661/2007, updates economical and legal framework for special regime generation, including installed power goals 2008 R.D.1578/2008, modifies, reducing incentives and increasing requirementts, fotovoltaic energy regulation 2009 R.D.6/2009, creates a special registration mechanism in order to reach the objectives of installed power in an efficient way RED ELÉCTRICA DE ESPAÑA Payment of Technical Services TECHNICAL CONSTRAINTS Final demand depending on the metered energy SECONDARY RESERVE (excepting pumping units and exports) Units which deviate from their programs SECONDARY ENERGY IN FAVOUR OF THE SYSTEM UPWARD UNBALANCES TERTIARY ENERGY (less consumption, more generation) DOWNWARD UMBALANCES (more consumption, less generation) DEVIATION MANAGEMENT Receive DMP Pay DMP IN OPOSSITION TO THE SYSTEM Receive minimum of: •DMP •Average price of DOWNWARD energy used (SR + TR + DM) Pay Maximum of: • DMP • Average price of UPWARD energy used (SR + TR + DM) Deficits and surpluses are paid by final demand proportionally to metered energy (excepting pumping units and exports) RED ELÉCTRICA DE ESPAÑA Influence of solar photovoltaic in system operation 2% of the total energy demand in 2009. Present installed capacity: 3 392 MW. Reduced observability by the SO. Must be solved. Behavior in summer in accordance to demand requirements. In winter, peak demand is in the evening. No contribution. Connection to Transmission/Distribution: 2/98% YEAR SOLAR PV PRODUCTION (GWh) 2005 40 2006 103 2007 466 2008 2 477 2009 5 347 Source CNE RED ELÉCTRICA DE ESPAÑA Integration of solar thermoelectric in system operation Present installed capacity 481 MW. In the short term: increase of 500 MW per year. Two technologies: parabolic trough and tower. Connection to Transmission/Distribution: 63/37% Year 2007: first commercial solar thermoelectric plant installed (PS-10) Installed capacity: 11 MW (as a part of the Solucar project with expected 300 MW en 2013). Generated energy in 2009 : 125 GWh. Planning 2010-2012: 500 MW per year of new installed capacity. Planta PS-10 Positive correlation with demand in summer. In winter molten salt storage and hybridation with natural gas allow production during the daily load peaks becoming mostly manageable generation. 21 RED ELÉCTRICA DE ESPAÑA Legal framework (I) Definition of Special Regime Law 54/1997 Article 27: Special regime of electricity generation Electricity generation activities shall be regarded as generation under the special regime system in the following cases whenever they are carried out from installations whose installed power is no greater than 50 MW: Cogeneration or other forms of electricity generation associated with non-electricity operations, provided they involve high efficiency output Whenever non-consumable renewable energies, biomass or biofuels of any type are used as primary energy, provided their holder does not engage in generation activities under the ordinary system Whenever non-renewable waste is used as primary energy 22 RED ELÉCTRICA DE ESPAÑA Royal Decree 661/2007 Legal framework (II) Legal and economic framework for Special Regime production which includes: Type of installations that can be considered as Special Regime Procedure to include plants in the Special Regime Register Rights and obligations of the Special Regime producers Priority of dispatch over conventional generation Market integration. Two options: Regulated rate: Constant feed-in tariff per MWh produced Selling the electricity on the electricity production market: price established in the day-ahead and intraday organised market (OMEL) or the price that has been freely negotiated by the owner or the installation representative (bilateral contract), complemented by a premium dependent on the technology of the installation. Economic framework Requirements to participate in the system adjustment services Cost of deviations 23 Economic Framework (I) RED ELÉCTRICA DE ESPAÑA Art 24.1.a: Sell trough distributor or transport grid Art 24.1.b: Sell in the electricity energy production market Feed-in tariff Price of the organized market For some technologies (CHP, minihydro, biomass…) depends on the periods they generate. Premium: For renewable energies: With upper and lower limits for the sum of the reference market price an the reference premium For non renewables: Fixed premium Reactive energy supplement If P>=10MW units may receive instructions from the OS High efficiency supplement (for CHP) Supplement for voltage dip ride through capabilities (maximum period 5 years, until 31/12/2013) For wind only. Reactive energy supplement If P>=10MW may receive instructions from the operator of the system. High efficiency supplement (for CHP) Supplement for voltage dip ride through capabilities (maximum period 5 years, until 31/12/2013) For wind only. 24 Economic framework (II) RED ELÉCTRICA DE ESPAÑA Art 24.1.a: Sell through distributor or transport grid Art 24.1.b: Sell in the electricity energy production market Directly or through a representative or trader Directly or through a representative or trader Cost of deviations Cost of deviations If have the duty to have hourly measuring equipment: As established in PO 14.4 If not: exempt Participation in the system adjustment services Mandatory ones: Such as “Technical constraint management” As established in PO 14.4 Participation in the system adjustment services Mandatory ones: Such as “Technical constraint management” Manageable installations may participate in optional services (subject to prior authorization by the administration and technical authorization by the SO) 25 RED ELÉCTRICA DE ESPAÑA Challenges The current high penetration of RES must be significantly increased due to ambitious national objectives (2020: 20% of Efinal ≈ 40% Eelectric) 19.975 MW* 38.000 MW** > 3.500 MW* 630 MW* 5.079 MW** 8.367 MW** Technical challenges motivated by particular features of new generation: • Market/Regulatory changes Location far from load and sometimes grid • TSO management of new RES connections Vulnerability to incidents(voltage dips) (queues Primary energy: Lack of firmness and control dispatchable resources * Power installed Dec 2010 ** NAP for 2020 submitted to EC in June10 (Under review) mangement) and tests for more •Technical Requirements (voltage dips, freq. regulation, voltage control, …)