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Get up to date with existing and upcoming regulations effecting energy use in Kenya. Learn more on trends in policy making and how this will affect you as a consumer.
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The attached slides outline our ideas on how the value of flexibility could be traded in the European electricity markets, within the context of the Target Model. Contact Stephen Woodhouse at Pöyry for further details of an ongoing study
The project involves determining real time electricity charges incurred by the residential consumers. The smart grid integrated with residential PV systems was modeled in Simulink to determine demand response in dynamic pricing environment. Based on the load demand, electricity charges were calculated and compared with flat rate charges to highlight cost savings.
Demand side management
It is also called as energy demand management
The modification of consumer demand for energy through various methods such as financial incentive and education is termed as demand side management.
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Demand response is seen as measure to increase the power system flexibility. Recent developments from research projects and pilots pave the way to large scale deployment and commercialization. This webinar will present the potentials of different DR technologies and different national and international approaches and discusses how flexibility of demand is making its way into markets and network operation. IEA-DSM Task 17 addresses the current role and potential of flexibility in electricity demand and supply of systems of energy consuming/producing processes in buildings (residential and commercial) equipped with DER (Electric Vehicles, PV, storage, heat pumps, ...) and their impacts on the grid and markets.
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2. 2
Markets
Where to value my flexibility
?
Process
Where is my energy
flexibility ?
How to extract it ?
Two main topics to address when
speaking about Demand Response Management
3. 3
Process
Where is my energy
flexibility ?
Two main topics to address when
speaking about Demand Response Management
Which kind energy
flexibility ?
How much from my
flexibility can I
leverage .
How can I use it
managing all my
constraints ?
What does flexible
mean ? I don’t want
to stop my process !
What ? What ?
How ?
How ?
5. 5
Many flexible processes:
… with opportunities in various areas from electro-intensive to residential level
Source: EnergyVille 2017
What energy
flexibility ? Which
process/asset ?
What ?
6. Extract and daily operate the energy flexibility can be
complex and multiple aspects need to be considered
6
Process planning is not only about electricity cost…
Minimize Energy
Bill
Minimize
Operational Cost
Minimize
Time spent
Many additional constraints need to be taken into account: Technical,
Economical and Commercial ….
Also the willingness needs to be considered (i.e. Residential flexibility)
… many other objectives need to be considered
(i.e. minimization of the time spent charging a EV)
… Finally, reactivity is a key in the design of an optimal planning
in order to make the most from the flexibility.
€
How much from my
flexibility can I
leverage .
What ?
7. 7
Markets
Where to value my flexibility ?
Two main topics to address when
speaking about Demand Response Management
Where should I valorize
my flexibility in a safe
and profitable way?What does flexible
mean ? I don’t want
to stop my process !
Where ?
Where ?
How much can I hope ?
I have a high cost to
operate my flexibility
Where ?
8. 8
• Programs giving customers time-varying rates
that reflect the value and cost of electricity in
different time periods.
• Armed with this information, customers tend to
use less electricity at times when electricity
prices are high
Implicit Demand ResponseExplicit Demand Response
Two types of Demand Response (DR)
DR Programs offering complementary opportunity to flexibility
Incentive-Based Demand
Response
Price-Based
Demand Response
• Programs that pay participating customers for
reducing or increasing their loads at a specific
time defined by the program sponsor.
• These events are triggered in general by a grid
reliability problem.
9. 9
Incentive-Based and Price-based programs
offering complementary varlorization to energy flexibilities…
Incentive-Based Price-Based
Demand Response Valorization Opportunity
Day ahead
Market
Imbalance
Market
Intra-Day
Market
FCR
progams
aFRR
programs
mFRR
programs
Strategic reserve
programs
Capacity Market
programs
Congestion
Management
Where should I valorize
my flexibility in a safe
and profitable way?
Where ?
10. Markets requirements for valorization Energy Flexibility
Level of Reactivity
Energy Constraints
Commitment Timing
Remuneration ?
Access
How fast I am supposed to be able to react ?
With which time granularity do I need to follow a setpoint
?
How often do I need to react/adapt my load ?
How long do I need to reduce/increase my load ?
How long in advance do I need to commit in terms of
availability ?
What level of remuneration can I expect ? For my
availability (Reservation cost) ? For my activation/energy ?
How can I have access to this flexibility product/approach
? What type of electricity contract do I need to have ?
How much can I hope ?
I have a high cost to
operate my flexibility
Where ?
11. Advanced Analytics as an key enabeler to manage
compexity behind energy flexibility operation
DESCRIPTIVE ANALYTICS
PRESCRIPTIVE
ANALYTICS
DATA ECOSYSTEM
Where ?
PREDICTIVE ANALYTICS
When / How ?
12. Concrete example: Pulp and Paper Industry
Wood Supply
Mechnical
Pulp Lines Pulp Storage Paper Machines Paper Storage Paper Demand
Market Grid CHP + Electricity
Management
Buy / Sell
13. Concrete example: Pulp and Paper Industry
Mechnical
Pulp Lines • Overcapacity: 10%
• High Consumption: 30 MW
• 5 Lines of ON/OFF Process
• Ramp up/down constraints 1H
• High Supply Chain constraints
Paper
Machines
• No overcapacity
• Medium consumption: 6 MW
• No stops allowed (high cost to
start-up and production loss)
CHP
• High production of electricity: 20 MW
• Steam Storage ( 10H of steam
demand)
• Highly flexible to switch production
level of steam vs electricity
WHAT to leverage ?
Mechnical
Pulp Lines
• Min time step 1 hour
• Load Shifting opportunity
• Production planning set-up in
advance
Paper
Machines
• Load Shedding opportunity
• High cost to be covered
• # of Activations of flexibility
should remain limited
CHP
• Time step is short [1- 15 min]
• # of activations of flexibility can be
high
• Period of activation can last up to 10
Hours
WHERE to leverage ?
Day-ahead Market Ancillary Services DA Market, Balancing
market or ancillary
Services
Load Shifting Load Shedding Steam/Electricity
arbitrage
14. Concrete example: Pulp and Paper Industry
How to leverage ?
UC1: Reserve
Optimization
UC2: DA
Nominations
Optimization
UC 3:
Intraday
Optimization
UC4:
Balancing
Optimization
UC 5:
Activation
Optimization
Weekly / Day ahead
Auctions
Day ahead 3-4 Hours ahead 1 hour ahead 1-5 min ahead
15. Concrete example: Pulp and Paper Industry
How to leverage ?
UC1: Reserve
Optimization
UC2: DA
Nominations
Optimization
UC 3:
Intraday
Optimization
UC4:
Balancing
Optimization
UC 5:
Activation
Optimization
Weekly / Day ahead
Auctions
Day ahead 3-4 Hours ahead 1 hour ahead 1-5 min ahead
What power and
energy prices to
bid on reserve
market ?
Is it better to propose my
flexibility on reserve
markets or to keep it for
DA/Intraday/Balancing
optimization ?
How many MWs to
offer on the different
reserve markets for the
coming week(s)/day(s)
?
What are the best
flexibility products for
me, based on my
processes
characteristics ?
16. Concrete example: Pulp and Paper Industry
How to leverage ?
UC1: Reserve
Optimization
UC2: DA
Nominations
Optimization
UC 3:
Intraday
Optimization
UC4:
Balancing
Optimization
UC 5:
Activation
Optimization
Weekly / Day ahead
Auctions
Day ahead 3-4 Hours ahead 1 hour ahead 1-5 min ahead
How to leverage
variability of spot
prices in my CHP
planning ?
How to manage and
optimize the
interconnection between
production scheduling and
CHP planning ?
How to generate
nominations that
minimize electricity
costs and reduce
imbalance risks ?
How to optimize my
production schedule
based on electricity
price variability ?
17. Concrete example: Pulp and Paper Industry
How to leverage ?
UC1: Reserve
Optimization
UC2: DA
Nominations
Optimization
UC 3:
Intraday
Optimization
UC4:
Balancing
Optimization
UC 5:
Activation
Optimization
Weekly / Day ahead
Auctions
Day ahead 3-4 hours ahead 1 hour ahead 1-5 min ahead
How to adapt my
nominations if I
have to change my
planning during the
day ?
Can I benefit from
lower electricity
prices in intraday
market ?
At what price do I
have to propose my
flexibility on the
intraday market ?
How to mitigate the
imbalance risks linked
to on-site RES on the
intraday market ?
18. Concrete example: Pulp and Paper Industry
How to leverage ?
UC1: Reserve
Optimization
UC2: DA
Nominations
Optimization
UC 3:
Intraday
Optimization
UC4:
Balancing
Optimization
UC 5:
Activation
Optimization
Weekly / Day ahead
Auctions
Day ahead 3-4 Hours ahead 1 hour ahead 1-5 min ahead
How to minimize in real-
time the imbalance volume
despite of last minute
changes in my processes
and order book ?
Is it better to
consume more now
or to nominate more
for tomorrow ?
Do I have to modify my
planning in real-time
to benefit from
attractive imbalance
prices ?
How to manage
the imbalance
created by on-
site RES ?
19. Concrete example: Pulp and Paper Industry
How to leverage ?
UC1: Reserve
Optimization
UC2: DA
Nominations
Optimization
UC 3:
Intraday
Optimization
UC4:
Balancing
Optimization
UC 5:
Activation
Optimization
Weekly / Day ahead
Auctions
Day ahead 3-4 Hours ahead 1 hour ahead 1-5 min aheadHow to convert my
balancing
recommendations into
actions at the asset
level ?
How to manage
unavailability of
commited assets
?
In case of activation by
TSO/aggregator, how to
provide the required load
shedding at lowest
possible cost ?
How to re-optimize
my planning after a
demand-response
event ?
20. Want to unlock your energy flexibility ?
Want to simulate your potential ?
- Meet us on N-SIDE booth -