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LEM Platform Overview Cornwall LEM Flexibility Market Platform Thursday 19 November 2020 LEM Platform Overview LEM trial models Trials results Next steps and LEM platform solutionMilestones Market clearing LEM platform demo Cornwall Local Energy Market Platform Overview • Part-funded by European Regional Development Fund, part-funded by Centrica • Cornwall an area with significant penetration of renewables and consequent grid management issues • The LEM Programme aims to: • Develop and demonstrate a highly automated and “production ready” market-based solution to DSO & TSO flexibility procurement. • Demonstrate a transparent means of coordinating DSO and ESO flexibility procurement. • Save at least 5,600 tonnes of greenhouse gas emissions per year by fostering the installation of domestic and commercial smart energy infrastructure in Cornwall. Programme started in Q1 2017, will finish end of 2020. Project partners An integrated auction platform to unlock flexibility across transmission and distribution DSO TSO Balancing market Wholesale market Buys from DERMS DSO systems Cornwall Local Cornwall Energy Market Energy Sells to (Aggregated / Direct) Generation Flexible demand Storage / EVs LEM Platform Overview LEM trial models Trials results Next steps and LEM platform solutionMilestones Market clearing LEM platform demo Phase 1 & 2 Market models Phase 1 Trial Phase 2 Trial Market Quote and Tender (one sided) Market Spot Market (two sided) Model Model • Electronic version of existing purchasing • Separate reservation and Utilisation auctions mechanism • Can reserve significantly in advance – reserved services • Asset reservation & dispatch confirmation must participate in utilisation auction close to delivery • Concurrent purchasing by ESO and DSO with grid secure • DSO places Flex request - providers respond optimisation and independent conflict avoidance with offers functions • DSO optimises the offers to accept and has • Price cap can be put in place where required due to lack advance visibility of prices of liquidity Feature Phase 1 Trial Feature Phase 2 Trial Purchasers WPD as DSO only Purchasers DSO and ESO individually and concurrently Optimisation Selection of offers by DNO – separate Excel Optimisation Optimised for all purchasers and providers - Solver based tool developed commercial optimisation tool Conflict management Not part of trial Conflict Management Built in to optimisation, avoid services that overload Flex provider capacity 11 Locations, capacity c. 25MW, varied during network the trial. Flex provider capacity 11 Locations, capacity c. 25MW, varied during the trial. Flex provider types Diesel generators, gas turbine, flow battery, Flex provider types As per Phase 1, - flow battery +ice manufacturer domestic battery clusters. When Sept – Dec 2019 When May – August 2019 Where 3 BSPs plus 3 primaries Where 4 BSPs plus 4 primaries Service types Pre-fault congestion management and post fault Service types Pre-fault congestion management or dispatch maintenance window extension 6 Auction Model Benefits Benefits of the auction model • Allows for complex bids and ensures a better execution/matching of blocks • Allows generators to offer energy in consecutive hours taking into account technical and economic requirements • Enables T/D co-ordination • optimal allocation of network capacity • Increased market depth (likely due to not withholding capacity for potential price increases) • Lower barriers to entry (for small market players not equipped for continuous 24/7 trading) • Typically allows for a longer calculation time • Fallback and backup procedures are easier to implement LEM Platform Overview LEM trial models Trials results Next steps and LEM platform solutionMilestones Market clearing LEM platform demo Cornwall trial results Phase 1 Trial Results – Prices & Delivery 11.5 MW 12 Bids Registered 8 Contracts (16.5 MWh) 7 Sites / 17 Offers Locations Average Offer Price Delivery Proportion per Event 14 3 12 10 2 8 6 1 4 Number of Number Occurrences 2 of Number Occurrences 0 0 220 300 305 320 600 0 to 0.2 0.2 to 0.4 0.4 to 0.6 0.6 to 0.8 0.8 to 1 Utilisation Price [£/MWh] [lower bound] Delivery Proportion Range 9 Cornwall trial results Phase 2 Trial Results – Prices & Delivery 30.91 MW 381 Bids Registered 77 Reserve 49 Utilisation Contracts Contracts (210 MWh) (100 MWh) 12 Sites / 107 Offers Locations Average Utilisation Price per Contract Delivery Proportion per Event 12 25 10 20 8 15 6 10 4 2 5 Number of Number Occurrences Number of Number Occurrences 0 0 160 180 200 220 240 260 280 300 320 0 to 0.2 0.2 to 0.4 0.4 to 0.6 0.6 to 0.8 0.8 to 1 Utilisation Price [£/MWh] [lower bound] Delivery Proportion Range 10 Cornwall trial results Key Learning Points • Network Data (required improvements) • Network topology under abnormal running arrangements • Customer-to-network mapping • Constraint forecasts • Power flow analysis or power transfer distribution factors • Market Design • Short-term vs long-term procurement • Need to address the imbalance effect on Balance Responsible Parties when providing a DSO service • Performance Assessment • Reliability – Average 58.3% throughout the trials • Metering data resolution has little impact on results • Site vs Asset level metering data can significantly effect results 11 LEM Platform Overview LEM trial models Trials results Next steps and LEM Platform solutionMilestones Market clearing LEM platform demo Flexibility market functions The platform manages the end-to-end-process Grid model import Bids and Auction Contracts Delivery Baselining Settlement offers Resources registered End-to-end process Grid model import Network Topology/Hierarchy • Radial network assumed for the trials GSP BSP Primary Substations Headroom Limits • “Headroom” represents the availaBle capacity on the network • Specified per grid node • Per settlement period • For Both demand and generation Flexibility market functions The platform manages the end-to-end-process Grid model import Bids and Auction Contracts Delivery Baselining Settlement offers Resources registered End-to-end process Resources registered Sites Registered Assets Registered • MPAN’s used to verify location • Generation / Storage / DSR • Site associated to grid node • Technical parameters of the assets • Import / Export capacity • Ramp rates • Contact Information • Max / Min runtimes • Recovery time • Maximum energy Flexibility market functions The platform manages the end-to-end-process Grid model import Bids and Auction Contracts Delivery Baselining Settlement offers Resources registered End-to-end process Bids and offers Bids = Buy Orders Offers = Sell Orders • Time • Time • Volume (MW) • Volume (MW) • Location • Location • Price (£/MW/h) or (£/MWh) • Price (£/MW/h) • Min acceptance vol (MW) • Max energy (MWh) (opt.) (opt.) • Min activation time (opt.) • Time block (Boolean) (opt.) • Max activation time (opt.) • Min recovery time (opt.) • Min acceptance volume (MW) • Time block (Boolean) (opt.) • Ramping rate (kW/min) (up and down) (opt.) Flexibility market functions The platform manages the end-to-end-process Grid model import Bids and Auction Contracts Delivery Baselining Settlement offers Resources registered End-to-end process Auction Reserve and/or Energy Decreasing uncertainty on flexibility needs and Auction Schedule congestion states Uncertainty M-3 Reserve M-1 Reserve DSO LT auctions DA auctions ID market W-1 Reserve Congestion DA Utilisation management ID Utilisation and post-fault response Reserve Utilisation Utilisation Can easily add other auctions or ESO merge reserve + Balancing and utilisation Algorithm auctions congestion Reserve Utilisation Utilisation automatically management clears the market ✓ Fairness ✓ Transparency ✓ Max Social Welfare ✓ Robustness Flexibility market functions The platform manages the end-to-end-process Grid model import Bids and Auction Contracts Delivery Baselining Settlement offers Resources registered End-to-end process Contracts Compliant with Maximum asset constraints social welfare Grid secure T/D Co-ordination Flexibility market functions The platform manages the end-to-end-process Grid model import Bids and Auction Contracts Delivery Baselining Settlement offers Resources registered End-to-end process Baselining 30-minute site level metering data uploaded Based on the ISONE similar days approach • Calculate average generation/consumption for the ten previous similar days • Adjustment factor based on usage on the event day • Calculates the predicted generation/consumption over the event window Flexibility market functions The platform manages the end-to-end-process Grid model import Bids and Auction Contracts Delivery Baselining Settlement offers Resources registered End-to-end process Settlement Monthly settlement service • Delivery percentage calculated based on the predicted baseline and the actual metered data • Payment percentage calculated based on DP • Buyers are then invoiced and payment is dispersed to the sellers User Interface and API’s Reduce barriers to entry • Easy to use web based User Interface allows small and less sophisticated participants to enter Complex functionality • Tried to keep the complex functionality required for a market • Sophisticated participants can automate systems by connecting directly with our API. LEM Platform Overview LEM trial models Trials results Next steps and LEM platform solutionMilestones Market clearing LEM platform demo N-SIDE is providing the Clearing Algorithm Sell Buy Advance Analytic Orders Books price Demand cleared price Supply cleared quantity quantity
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