The Electric Grid 2.0 - Fergus Wheatly


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This is Fergus Wheatly\'s presentation at the it@cork Green IT Conference on November 26, 2008

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The Electric Grid 2.0 - Fergus Wheatly

  1. 1. Electricity Grid 2.0 Fergus Wheatley B.Sc (eng).
  2. 2. Electricity is difficult to store <ul><li>Generation and Consumption must always be matched. </li></ul><ul><li>Generators and Transmission lines built to deal with the PEAK load rather than the AVERAGE load </li></ul><ul><li>This means that we are paying for expensive generators and transmission lines that are only rarely used. </li></ul><ul><li>Difference in Ireland between the night valley and 6 O'clock peak load is about 2000 MW, </li></ul><ul><li>Or 5 modern Gas fired power stations. </li></ul>
  3. 3. Electricity Grid 1.0 <ul><li>100 year old concept. </li></ul><ul><ul><li>Always match supply to demand </li></ul></ul><ul><ul><li>Minimum effort in getting demand to move </li></ul></ul><ul><ul><li>Majority of users using fixed tariffs </li></ul></ul><ul><ul><li>Old & inefficient plant is still required to meet peaks in demand. This cost is passed to consumers in the form of higher bills. </li></ul></ul><ul><ul><li>Huge swings in wholesale electricity rates not seen by customers </li></ul></ul>
  4. 6. Electricity Grid 1.1 (1999) <ul><li>New entrants to the wholesale market. </li></ul><ul><li>Energia, Aertricity. Bord Gais et al (check dates) </li></ul><ul><li>Bought Electricity through bilateral agreements and sold on to customers. </li></ul><ul><li>Some analysis of consumer load is done, to settle on an average price for customer. </li></ul><ul><li>Nobody offering a “pass-through” tariff. </li></ul>
  5. 7. Introduction to SEM (Grid 1.2) <ul><li>Single Electricity Market </li></ul><ul><li>All generators bid, Market operator looks at all prices and anticipated demand, publishes a dispatch file (Indicative Schedule on half hour basis, with prices) </li></ul><ul><li>Customers CAN use this to plan their electricity usage. However because nearly everybody uses a fixed tariff, nobody really bothers to plan. </li></ul>
  6. 8. Operating the Grid <ul><li>Eirgrid uses the D-1 file and asks power stations to turn on & off, dispatching the least expensive stations based on bid price. </li></ul><ul><li>If demand is greater than forecast or if another power station goes off-line, then Eirgrid, dispatches the next least expensive station capable of meeting demand. </li></ul><ul><li>The cost of this power station is now the new pool price. All remaining generators feeding the grid get paid this new pool price. </li></ul>
  7. 9. Wind Power <ul><li>Wind farm operators normally bid in at very low rates (€ 2.00 per MWhr) </li></ul><ul><li>This means that wind will always be chosen to run, being the cheapest generators. </li></ul><ul><li>However they will be paid the pool price. (the MWhr cost of the most expensive generator running). </li></ul><ul><li>Wind is referred to as a “PRICE TAKER”, and can significantly effect wholesale prices by blocking out conventional power stations. </li></ul>
  8. 10. Generated. Highlight line, accept or reject to Grid instructions. Declare Available MWatts. Exported to Grid. (i.e. After House load subtracted).
  9. 12. Electricity Grid 2.0 (2008/2009) <ul><li>The SEM will lead to Grid 2.0 </li></ul><ul><li>We’re not there yet. </li></ul><ul><li>Big wholesalers; ESB, Energia, Bord Gais still mostly charging negotiated fixed rates. </li></ul><ul><li>Usage is analysed and wholesaler offers a fixed rate based on demand to date. </li></ul><ul><li>Some incentive to move demand away from expensive periods. </li></ul>
  10. 13. Pass through Pricing <ul><li>Pass through pricing offers a SERIOUS incentive to pull demand away from high price events. </li></ul><ul><li>New market entrant VALU has just started offering pass-through pricing. </li></ul><ul><li>Commercial Resistance from existing players, because wholesale margins will be effected. </li></ul>
  11. 14. Matching Demand to Supply? <ul><li>40% of electricity generated in 11 years time will be from renewable sources. To reach this figure there needs to be about 6,000 MW of wind connected to the grid. </li></ul><ul><li>9% of electricity generated today is from renewable sources from 850MW of wind + about 120MW of hydro. </li></ul><ul><li>Wind is impossible to dispatch, it’s either there or its not. Supply is not flexible, so demand must be. Otherwise there will be significant curtailment of wind. </li></ul>
  12. 15. System Records
  13. 16. Wind already having an effect <ul><li>Wind is already curtailing expensive generation and reducing wholesale prices </li></ul><ul><li>Next graph, reducing prices by about 20% in off-peak periods, </li></ul>
  14. 18. Bio Fuels Directive <ul><li>EU rules state that 10% of transport fuel must be renewable by 2020. </li></ul><ul><li>Ireland under John Gormley and Eamon Ryan are aiming for about 2-3% veg oil and the balance in charging Electric Vehicle batteries from Wind. </li></ul><ul><li>10% of cars to be electric by 2020. </li></ul><ul><li>Increased demand on the grid. Without Demand Response more price swings. </li></ul>
  15. 19. Synergy Module <ul><li>Technology to assist Demand Response </li></ul><ul><li>Auto-Generation. (Wrongly called embedded generation). </li></ul><ul><li>Helps increase the portion of variable renewable sources of electricity. </li></ul><ul><li>Helps Grid stability </li></ul><ul><li>Reduces the cost of spinning reserve </li></ul><ul><li>Reduces the peak expensive power. </li></ul>
  16. 20. iLon Smart Server
  17. 21. Demand Response <ul><li>Energy Reduction </li></ul><ul><ul><li>Autorun Diesel Generators </li></ul></ul><ul><ul><li>Heating and Cooling Thermostat Control </li></ul></ul><ul><li>Energy Time Shift </li></ul><ul><ul><li>Domestic Heating </li></ul></ul><ul><ul><li>EV & PHEV </li></ul></ul><ul><ul><li>Refrigeration </li></ul></ul><ul><ul><li>Ice Bank Air Conditioning </li></ul></ul><ul><ul><li>Water Pumping </li></ul></ul><ul><ul><li>Smart Domestic Appliances </li></ul></ul><ul><li>Energy Demand Stimulation (Replace Fossil Fuels) </li></ul><ul><ul><li>Swimming Pool Heating (via Heat Pump) </li></ul></ul><ul><ul><li>H 2 production </li></ul></ul>
  18. 23. Screen shot of Synergy Setup
  19. 24. Summary <ul><li>Moving Electricity load helps; </li></ul><ul><ul><li>Reduce CO2 by curtailing in inefficient plants required for peak load. </li></ul></ul><ul><ul><li>Saves serious money on utility bills. </li></ul></ul><ul><ul><li>Helps with Ireland Inc. fuel security. </li></ul></ul><ul><ul><li>Helps grid stability. </li></ul></ul><ul><ul><li>Helps increase wind / variable renewable portion of electricity used. </li></ul></ul>