Distributed power participation in the Danish electricity market: regulation and dispatch issues Anders Stouge, Deputy Director General Danish Energy Association.

  • 91 views
Uploaded on

Участие распределенной энергетики в электроэнергетическом рынке Дании: вопросы регулирования и диспетчеризации. Докладчик: Андерс Стауге, Дания (Danish Energy Association, Заместитель Генерального …

Участие распределенной энергетики в электроэнергетическом рынке Дании: вопросы регулирования и диспетчеризации. Докладчик: Андерс Стауге, Дания (Danish Energy Association, Заместитель Генерального директора). Семинар "Распределённая генерация: технические аспекты", 13 февраля 2013 г.

More in: Technology , Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
91
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
5
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Distributed power participation in the Danish electricity market: regulation and dispatch issues Anders Stouge, Deputy Director General Danish Energy Association Ast@danskenergi.dk
  • 2. Agenda 1. Danish Energy Association 2. The Danish Power System – a brief 3. Are we witnessing a change of paradigm 4. Centralized vs. Distributed electricity generation 5. Distributed generation and the liberalized power market 6. Subsidies for Distributed Energy in Denmark 7. Technical constraints for DG 8. Efficiency issues – central vs. decentral
  • 3. 27-06-2012
  • 4. DNO (DSO) Utilities – production-investors Traders – electricity Energy Service Providers Optical Fiber Intelligent Energy EV Gas Broad stakeholder Forums: - Energy companies - Tech companies - Academia
  • 5. dato Forfatter, Titel5  Electricity grid companies (69 companies and 99% of DSO network)  Electricity trading companies (27 companies and 90% of total retail)  Electricity production companies (14 companies and 60% of total generation)  Danish Electric Vehicle Alliance (56 companies – all major players) Danish Intelligent Energy Association (135 companies - all major players) Danish Energy Association is a commercial and professional organisation for Danish energy companies. Aims  The Danish Energy Association takes care of its member companies’ interests and thus works to improve conditions and competition among these companies in order to ensure development, growth and well-being in Denmark.
  • 6. Our offices in Copenhagen and in Brussels Dansk Energi Rosenørns Allé 9, 1970 Frederiksberg C, T: +45 22 75 04 52 E: uba@danskenergi.dk Denmark Danish Energy Association Rue de la Loi 227, B-1040 Bruxelles T: +32 (0)491 25 30 23 F: +45 35 300 401 E: kim@danskenergi.dk Lat/Lon:50.842027, 4.385166
  • 7. Øget produktion af VE Øget anvendelse af el Flere energibesparelser Energy companies and business areas
  • 8. Agenda 1. Danish Energy Association 2. The Danish Power System – a brief 3. Are we witnessing a change of paradigm 4. Centralized vs. Distributed electricity generation 5. Distributed generation and the liberalized power market 6. Subsidies for Distributed Energy in Denmark 7. Efficiency issues – central vs. decentral 8. Technical constraints for DG
  • 9. About Denmarks current power system  Strong connections to neighbouring countries  Part of Nord Pool market  Relatively small market  Denmark 36 TWh  Sweden 150 TWh  Norway 136 TWh  Germany 600 TWh  4000 MW wind power installed (30 % of prod.)
  • 10. Transmission capacities in 2012, MW 1.750 950 710 600 600 1.500 600 700
  • 11. Electricity generation capacity – EU countries
  • 12. The revolution of the European energy system – long term perspective
  • 13. The electrical grid in Denmark
  • 14. Goals for Danish Energy system 2020: 50% wind power in electricity consumption 2020: 40% reduction of GHG emissions vs. 1990 2030: Coal out of power plants 2035: 100% renewable energy in electricity and heating sector 2050: 100% renewable energy
  • 15. nn May 2010 EcoGrid EU 15 We need back up capacity with short back up time Tomorrow 50% wind (2025)Today 20% wind (2008) 0 500 1000 1500 2000 2500 3000 3500 4000 4500 Wind power Demand 0 500 1000 1500 2000 2500 3000 3500 4000 4500 50% wind power Wind power covers the entire demand for electricity in 200 hours (West DK) In the future wind power will exceed demand in more than 1,000 hours
  • 16. Agenda 1. Danish Energy Association 2. The Danish Power System – a brief 3. Are we witnessing a change of paradigm 4. Centralized vs. Distributed electricity generation 5. Distributed generation and the liberalized power market 6. Subsidies for Distributed Energy in Denmark 7. Technical constraints for DG 8. Efficiency issues – central vs. decentral
  • 17. Traditional concept of power system
  • 18. New concept of power system + prosumers
  • 19. Definition Distributed generation is considered as an electrical source connected to the power system, in a point very close to/or at consumer´s site, which is small enough compared with the centralized power plants.
  • 20. Denmark  Population: 5.5 mio.  BNP: 65500 mio. $  Energy production: 1137 PJ  Energi consumption: 864 PJ  Degree of self sufficiency: 130 %
  • 21. Point of departure: From a centralised to a decentralised RES based energy system 1980 Central power plant Decentral power plant Windturbine Today
  • 22. Danish power infrastructure, 2009
  • 23. NUMBER OF CHP AND DH PLANTS IN DENMARK Public-heat supply (cities): • 16 centralised CHP • 285 decentralised CHP • 130 decentralised DH plants Private heat supply (enterprises, institutions): • 380 CHP • 100 DH plants In all: • 665 CHP • 230 DH plants
  • 24. From oil crisis to CHP and renewables (1970-2011)  Oil crisis in the 1970s lead to focus on  Energy savings  Renewable energy  Combined heat and power  Consequences  Decoupling on energy consumption and economic growth  Improved efficiency in consumption and production  Development of district heating  More decentralized energy system  Increase electricity trade beyond the borders  Increase in wind turbines  Decrease in emissions  Development of new technologies
  • 25. Energy Flow - DenmarkEnergy Flow - Denmark - 2011
  • 26. Electricity production by type of producer, Denmark 0 50 100 150 200 1990 '95 '00 '05 '11 PJ Wind turbines and hydro Autoproducers Small-scale CHP units Large-scale CHP units Large-scale units, power only Source: Danish Energy Agency
  • 27. Electricity capacity, Denmark 0 2000 4000 6000 8000 10000 12000 14000 1990 '95 '00 '05 '11 MW Large-scale units Small-scale units Autoproducers Wind turbines Source: Danish Energy Agency
  • 28. CHP share of thermal power and district heating production 0% 20% 40% 60% 80% 100% 1990 '95 '00 '05 '11 District heating Electricity Source: Danish Energy Agency
  • 29. District heating production by type of production plant 0 20 40 60 80 100 120 140 160 1990 '95 '00 '05 '11 PJ Large-scale CHP units Small-scale CHP units District heating units Autoproducers, CHP Autoproducers, heat only Source: Danish Energy Agency
  • 30. Distributed generation shares in total electricity production, EU-25
  • 31. Agenda 1. Danish Energy Association 2. The Danish Power System – a brief 3. Are we witnessing a change of paradigm 4. Centralized vs. Distributed electricity generation 5. Distributed generation and the liberalized power market 6. Subsidies for Distributed Energy in Denmark 7. Technical constraints for DG 8. Efficiency issues – central vs. decentral
  • 32. Why central power system? The traditional central power systems is driven by:  Economies of scale  High energy efficiency  Alternative current – less transmission loss  Pooling of resources through transmission networks  Environmental benefits  Regulation favoring larger generation facilities
  • 33. Drawbacks of centralized paradigm (I) Decentralized power systems is driven by:  Transmission and distribution costs – 30% of cost of delivered electricity and losses (line losses, unaccounted for electricity, conversion losses (changing voltage)).  Rural electrification  Investment costs to upgrade transmission and distribution networks  Security and reliability (fuel diversity, back-up capacity to prevent operational failures)
  • 34. Drawbacks of centralized paradigm (II) Decentralized power systems driven is by:  Environmental impact (NOx, SO2, …)  Electricity deregulation and cost control device (to hegde against negative price impacts or to make a business based on price spikes on the market investments are made in distributed generation capacity)  Energy efficiency – combined heat and power production to increase efficiency – steam and heat are even less easily transported than electricity, thus justifying distributed generation through production next to the point of consumption
  • 35. Agenda 1. Danish Energy Association 2. The Danish Power System – a brief 3. Are we witnessing a change of paradigm 4. Centralized vs. Distributed electricity generation 5. Distributed generation and the liberalized power market 6. Subsidies for Distributed Energy in Denmark 7. Technical constraints for DG 8. Efficiency issues – central vs. decentral
  • 36. The power market in Denmark Trading takes place through different kinds of markets applying different kinds of trade; you can read more about trade on the pages: "Spot market", "Intraday" and "Reserve capacity and regulating power". Below please find a figure showing how the electricity market is structured.
  • 37. Liberalized power market Theoretical and in practice
  • 38. Power production capacity – Nordic countries
  • 39. Market volumes electricity markets Source: Market prices and traded volumes obtained from Energinet.dk
  • 40. Agenda 1. Danish Energy Association 2. The Danish Power System – a brief 3. Are we witnessing a change of paradigm 4. Centralized vs. Distributed electricity generation 5. Distributed generation and the liberalized power market 6. Subsidies for Distributed Energy in Denmark 7. Technical constraints for DG 8. Efficiency issues – central vs. decentral
  • 41. Subsidy for DG in Denmark Slides still under preparation
  • 42. Agenda 1. Danish Energy Association 2. The Danish Power System – a brief 3. Are we witnessing a change of paradigm 4. Centralized vs. Distributed electricity generation 5. Distributed generation and the liberalized power market 6. Subsidies for Distributed Energy in Denmark 7. Technical constraints for DG 8. Efficiency issues – central vs. decentral
  • 43. Technical constraints for DG (I)  Capacity: adding distributed generators at distribution level can significantly impact the amount of power to be handled by the equipment (cables, lines and transformers). May need reinforcement  The critical piece will often be transformers – if power generated exceeds by far consumption, power will have to flow back from the low voltage network to the medium voltage network or from the medium to the high voltage network and be directed to other consumption areas.  Voltage: When power is carried over long distance, voltage tends to drop due to resistance in cables. As generators connected to the distribution network tend to increase the network voltage. This could benefit the system. Adding another distributed generator might negatively impact the network by increasing voltage above the specifications.
  • 44. Technical constraints for DG (II)  Voltage and current transients: short term abnormal voltage or current oscillation may occur as distributed generators are switched on or off. The result of these oscillations can have a destabilizing effect on the network.  Ancillary Services: As of today all the ancillary services positively impacting the quality of electricity delivered are provided by centralized generators. For example, centralized generators are requested to keep capacities in excess of peak load to adjust production in case of demand surge, to hold voltage control devices. As the share of distributed generation increases, distributed generators will have to provide a larger share of these services??  The integration of distributed generation on a large scale will require the distribution network to be active in the sense that they will have to manage the flow coming from centralized generation through the transmission lines, forecast the levels of output from distributed generators (and especially peak generators), collect information, devise start-up procedures in case of system failures, automation
  • 45. Vision - DSO will operate active networks – DSO will act as “local and regional TSO”. In the active networks vision, the principles of network management differ from the classical view of networks The ‘infinite network’ as customers used to know it, no longer exists!!!!!!. The network interacts with its customers and is affected by whatever loads and generators are doing A dynamic pricing system and a market for ”using” the network at DSO-level will evolve – DSO will set the framework, standards and rules for the market
  • 46. From passive to active network management at DSO- level will be accompanied by developing new services for the electricity market With active management of distribution networks, the amount of DG that can be connected to existing distribution networks can be increased by a factor of three to five without requiring network reinforcement!!!!. Source: Akkermans and Gordijn, Business Models for Distributed Energy Resources in a Liberalized Market Environment, summarising report of BUSMOD, Enersearch AB, Malmö, Sweden, 2004.
  • 47. Agenda 1. Danish Energy Association 2. The Danish Power System – a brief 3. Are we witnessing a change of paradigm 4. Centralized vs. Distributed electricity generation 5. Distributed generation and the liberalized power market 6. Subsidies for Distributed Energy in Denmark 7. Technical constraints for DG 8. Efficiency issues – central vs. decentral
  • 48. Efficiency issues – central vs. decentral Slides still under preparation
  • 49. Anders Stouge, ast@danskenergi.dk  For more information:
  • 50. Extra  In case of questions related to other issues
  • 51. Electricity consumption by energy source
  • 52. Total Danish greenhouse gas emissions
  • 53. How will we reach 40% reduction of GHG emissions in 2020 vs. 1990 Wind Biomass and closing of power plant units
  • 54. 50% wind power in electricity consumption How? Calculations by Danish Energy Association 21,1% 5,4% 4,5% 11,1% 4,7% 3,2% 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% Electricity from wind, 2010 Adjustment, 2010 Offshore wind (400 MW) - Anholt Offshore wind (1000 MW) - Kriegers Flak+Horns Rev Coastal Wind (500 MW) Onshore Wind (500 MW net.) Shareofwindinelectricityconsumption,2020
  • 55. Doubling Energy Saving Obligations for energy companies - Focus on buildings and industry
  • 56. 4 groups of challenges and solutions following the EU Energy Roadmap 2050 1. Generation 2. Infrastructure 3. Energy Efficiency 4. Internal Energy Market
  • 57. Status for the 2020 targets before the adoption of the Energy Efficiency Directive The EED will achieve 15 % (+2 % on agreed transport measures)
  • 58. Background Information for the European Council, 4 February 2011 What the EU renewable target means Will put pressure on thermal power plants!!!! Share of renewable energy in total energy mix (in %) 0% 10% 20% 30% 40% 50% Belgium Bulgaria CzechRepublic Denmark Germany Estonia Ireland Greece Spain France Italy Cyprus Latvia Lithuania Luxembourg Hungary Malta Netherlands Austria Poland Portugal Romania Slovenia Slovakia Finland Sweden UnitedKingdom EU27 60% EU 2020 EU 2005 2005 levels Additional step to meet the 2020 target Each Member State has a binding target - set as a combination of renewable potential and GDP - to increase its share of renewable energy by 2020.
  • 59. Aging fleet of power plant in Europe
  • 60. 6 0 Policy recommendations to facilitate modernisations and transition of the energy system  Align EU policy and incentives to investment life cycle in power generation  Life time of power plants: 25-50 years  900 TWH to be replaced before 2020  Investors need certainty on post 2020 setup now  ETS phase IV in line with 2050 objectives (80-95% GHG reduction)  2030 GHG targets for non ETS sectors  EU wide RES targets for 2030
  • 61. Proposal from the Commission in 2013 on post 2020 policy framework - The political battlefield: conomic crisis nd unemployment No global agreemen climate agreement in sight Internal market vs. national regulation (GER, UK, PL, DK?) oland will veto all ost 2020 targets nd no MS but enmark favour a ew RES-target Changes to the ETS
  • 62. The Future – power plants
  • 63. The future of the Danish Power Sector? 50% WIND What about The other 50% ?
  • 64. What’s in it for me?
  • 65. What’s in it for me?
  • 66. What’s in it for me?
  • 67. What’s in it for me?
  • 68. Continuous investment in new capacity in the Nordic region Source: EIA.gov, 2012 0 10 20 30 40 50 60 70 80 90 100 GW Nordic Countries Installed Electrical Capacity Nuclear Conventional Thermal Hydro Wind Bio & waste
  • 69. Power surplus in the Nordic region Source: THEMA CONSULTING GROUP, 2012
  • 70. Surplus leads to substantial price differences to the Continent Source: THEMA CONSULTING GROUP, 2012
  • 71. How to secure the market value of power plants in Denmark:  Focus on 3 or 4 types of Cash Flows ? Electricity Heat Ancillary services (systemydelser) + capacity payment?
  • 72. Important issues Elspot Heat Ancillary services Flexible CHP plant Earnings per MW Reserves and other ancillary services  Great uncertainty about products and volumes going forward  Bilateral procurement in neighbouring areas without reciprocity reduce potential market size and earnings  Roles and responsibilities of market players not clearly and unambiguously defined Heat  Current Danish regulation only allows for cost based price setting  Transformation from being secondary to electricity production to becoming a primary product at certain times Elspot  Subsidized wind expansion puts downward pressure on price level  CHP electricity production needs to take heat contracts into account  Regulated maximum price does not allow for pricing of real scarcity Cash flow elements Issues that challenge the cash flow General  Insufficient infrastructure due to constraints on existing cables and inertia in build-out of new cables  Some products have been delivered implicitly as mandatory system services instead of in a well-defined specific market  Markets closer to hour of operation lack liquidity Cash flow elements available to ensure sufficient flexible capacity
  • 73. What will happen?? Minimum capacity to maintain security of supply MW Time Risk of capacity gap Purely market based capacity adjustment with no changes to current market design Current market design gives insufficient remuneration to flexible capacity If no intervention, a flexible capacity gap could arise (at least locally) in the medium term