The value of creating a flexible ecosystem
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The value of creating a flexible ecosystem. Creating a flexible energy ecosystem is the challenge for the whole energy market. Flexibility in energy demand and energy supply is a vital aspect for a successful energy transition. Especially because peaks in demand and supply are likely to grow substantially (electric transport, solar rooftops) in the near future. We all embrace a renewable energy future. Solar and wind energy are replacing fossil fuels. The REnnovates concept is designed to meet supply and demand at any time during every season. From a grid perspective, especially solar energy peaks in summer are difficult to control. Learn more about the necessity of energy flexibility and how we found ways to shave energy (generating) peaks in order to optimize our grid capacity. A challenge which has value.
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The value of creating a flexible ecosystem
- 1. Project co-funded by the European Commission in the H2020 Programme. The value of creating a flexible ecosystem
- 2. Project co-funded by the European Commission in the H2020 Programme. • Crash course electricity • The challenge • A potential solution • Demonstration project: Woerden • What’s next? • Welles/Nietes Agenda
- 3. Project co-funded by the European Commission in the H2020 Programme. • Electricity cannot be stored, so production and consumption must always be in balance • If production is higher than consumption, the grid frequency raises • Grid designs are based on the assumption that not everyone is using his maximum capacity at the same time (coincidence factor ≈ 0.2) Crash course electricity (1)
- 4. Project co-funded by the European Commission in the H2020 Programme. • Roles: – Prosumer: produces and/or consumes electricity – Aggregator: aggregates energy usage of prosumers – DSO: transports the electricity between prosumers (LV/MV) – BRP: assures balance between sold/bought energy – TSO: responsible for grid frequency Crash course electricity (2)
- 5. Project co-funded by the European Commission in the H2020 Programme. • All electric/NOM areas have some characteristics: – Overall increase of use of electricity – Generation/consumption are asynchronous – Coincidence factor raises (PV) • Prosumer: – Imbalance of price for used energy versus produced energy – Higher cost for BRP/DSO will be charged The challenge (1)
- 6. Project co-funded by the European Commission in the H2020 Programme. • BRP: – Potential mismatch with portfolio – Risk on imbalance due to volatility of generation • DSO: – Increased peaks can cause overload situations – Peak demand in relation to total energy requires costly investments • Solve issues individually leads to sub-optimization The challenge (2)
- 7. Project co-funded by the European Commission in the H2020 Programme. • Holistic view on use of all resources: – Use energy when it is produced (by solar/wind) – Avoid grid reinforcements • End-users flexibility must be unleashed • USEF provides framework to achieve this A potential solution
- 8. Project co-funded by the European Commission in the H2020 Programme. Energy System Balance Responsible Party Distribution System Operator Transmission System Operator Aggregator
- 9. Project co-funded by the European Commission in the H2020 Programme. Energy System Grid Operation Portfolio balancing System balancing Aggregator Transmission System Operator Balance Responsible Party Distribution System Operator Local optimization
- 10. Project co-funded by the European Commission in the H2020 Programme. Prosumer Residential flexibility SME flexibility Heat pump Solar Electric Vehicle Airco System Cooling systems Emergency generators
- 11. Project co-funded by the European Commission in the H2020 Programme. Customer is in control Money Privacy Comfort Security Value Creation Prosumer Residential flexibility SME flexibility Heat pump Solar Electric Vehicle Airco System Cooling systems Emergency generators
- 12. Project co-funded by the European Commission in the H2020 Programme. Grid Operation Portfolio balancing System balancing Local optimization Transmission System Operator Balance Responsible Party Distribution System Operator How working along a new common standard enhances value creation Aggregator
- 13. Project co-funded by the European Commission in the H2020 Programme. • CLASSIC GRID Free Market Adding flex maximises the system Free Market SMART GRID No constraints: normal operation Flex to fix constraints When flex does not suffice: graceful degradationPowerOutage NormalOperation Capacity Management Power Outage Graceful Degradation Normal Operation Power Outage Unused capacity
- 14. Project co-funded by the European Commission in the H2020 Programme. • In Woerden, the feasibility of USEF (for the DSO case) is demonstrated • Two aggregators operational: – Controlling DHW in houses (32) – Controlling district battery • Congestion simulated, actual grid has been reinforced Woerden
- 15. Project co-funded by the European Commission in the H2020 Programme. Initial D-prognoses
- 16. Project co-funded by the European Commission in the H2020 Programme. Flexibility request
- 17. Project co-funded by the European Commission in the H2020 Programme. Flexibility offer aggregator 1 (dwellings)
- 18. Project co-funded by the European Commission in the H2020 Programme. Flexibility offer aggregator 2 (battery)
- 19. Project co-funded by the European Commission in the H2020 Programme. Resulting D-prognoses
- 20. Project co-funded by the European Commission in the H2020 Programme. Realization
- 21. Project co-funded by the European Commission in the H2020 Programme. Performance aggregator 1 (houses)
- 22. Project co-funded by the European Commission in the H2020 Programme. Performance aggregator 2 (battery)
- 23. Project co-funded by the European Commission in the H2020 Programme.
- 24. Project co-funded by the European Commission in the H2020 Programme. It is okay to have a power outage every now and than Welles/Nietes
- 25. Project co-funded by the European Commission in the H2020 Programme. A DSO must have the ability to switch off/limit connections Welles/Nietes
- 26. Project co-funded by the European Commission in the H2020 Programme. Prosumers must have the ability to choose from different grid service levels Welles/Nietes
- 27. Project co-funded by the European Commission in the H2020 Programme. PV curtailment is a waist of renewable energy Welles/Nietes
- 28. Project co-funded by the European Commission in the H2020 Programme. Thank you! Milo Broekmans milo.broekmans@stedin.net
Editor's Notes
- USEF makes the prosumer the center point in a new energy market design: he is a consumer, a producer and, and this is new: the key delivery of flexibility. Selling his flexibility, the prosumer can lower his energy bill. Yet the market is complex and the amount of flexibility per prosumer is limited. This is why a crucial role is reserved for a middleman, the ‘aggregator’. By clustering the available flexibility and offering this to the market, the aggregator alleviates pain for all parties involved: [Generic story] For the DSO because For the TSO because For the BRP because [Specific lead] Considering this audience today, let me zoom into….. This flexibility could be of use to the DSO: to mitigate transport-issues by congestion management and voltage control MICHIEL – KAN DIT HELDERDER? IETS MINDER INFO DENSE? BRP: Flexibility for imbalance correction
- USEF makes the prosumer the center point in a new energy market design: he is a consumer, a producer and, and this is new: the key delivery of flexibility. Selling his flexibility, the prosumer can lower his energy bill. Yet the market is complex and the amount of flexibility per prosumer is limited. This is why a crucial role is reserved for a middleman, the ‘aggregator’. By clustering the available flexibility and offering this to the market, the aggregator alleviates pain for all parties involved: [Generic story] For the DSO because
- Let’s start with the prosumer. And let me stress once more that this group does not just consist of residential prosumers. Small and medium-sized businesses make up for an important part of the prosumer group, delivering a considerable amount of flexibility. The key ingredients to delivering flexibility for residential prosumers: heat pumps, solar, EV, airco For business prosumers, one could add things like cooling systems or (emergency) aggregates
- With the rise of smart appliances, the internet of things, the prosumer is increasingly capable of influencing his energy usage. We do not describe the interface with each if these appliances. USEF connects building management systems and inhome optimisation devices to the bigger system. It enables prosumers to cash out beyond inhome optimisation. USEF HAS CONSUMER AT ITS HEART: HE/SHE DETERMINES WHETHER OR NOT HE IS WILLING TO COMMERCIALISE HIS FLEXIBLE USAGE AND AT WHAT COST/ COMFORT SETTINGS => USEF TM FRONT DOOR Add privacy & security by desing, including something like privacy/value creation trade off, as important part for the willingness to provdie flex It is the aggregator that opens up these opportunities for prosumers.
- So: now we understand how we can add more flexibility to the energy market, we have to unlock the flexibility of the prosumer. In USEF, we address both business and residential prosumers.
- The role of the aggregator is between the wholesale system parties on one side and the prosumers on the other. Focusing on flexibility several new services, products and opportunities may arise.
- Traditionally a grid operator has two moda operanda: Normal operation where a free market is facilitated, or a power outage. TXT: YELLOW IS THE NEW GREEN ORANGE IS THE GRACIOUS RED Flexibility offers more controlled steering for grid operators. Normal Operation (Happy flow): no interference needed, flexibility has no value for grid operations Capacity Management: Congestion occurs at some points which can be alleviated by the use of distributed flexibility Graceful Degradation: The DSO interferes directly with the capacity of some parts of the grid in order to prevent a complete black-out Outage These regimes open up the flexibility market, yet allows the DSO to fulfill it’s regulated tasks