Ancillary Service Provision by RES and DSM Connected at Distribution Level in the Future Power System D1.1
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Smart TSO-DSO interaction schemes, market architectures and ICT Solutions for the integration of ancillary services from demand side management and distributed generation Ancillary service provision by RES and DSM connected at distribution level in the future power system D1.1 Authors: Julia Merino (TECNALIA), Inés Gómez (TECNALIA), Elena Turienzo (TECNALIA), Carlos Madina (TECNALIA), Iñigo Cobelo (TECNALIA), Andrei Morch (SINTEF), Hanne Saele (SINTEF), Koen Verpoorten (KU Leuven/EnergyVille), Enrique Rivero Puente (VITO/EnergyVille), Seppo Häninnen (VTT), Pekka Koponen (VTT), Corentin Evens (VTT), Niina Helistö (VTT), Alessandro Zani (RSE) and Dario Siface (RSE). Distribution Level PU Responsible Partner TECNALIA Checked by WP leader Date: 21/12/2016 – Daan Six (VITO) Verified by the appointed Date: 12/12/2016 – Loui Algren (Energinet) Reviewers Date: 14/12/2016 – Marco Rossi (RSE) Approved by Project Date: 21/12/2016 – Gianluigi Migliavacca (RSE) Coordinator This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 691405 Issue Record Planned delivery date 30/09/2016 Actual date of delivery 21/12/2016 Status and version Final Version Date Author(s) Notes 1.0 10/11/2016 TECNALIA/T1.1. partners First version for internal review 1.1 13/12/2016 TECNALIA Reviewed version with comments from Loui Algren addressed 1.2 20/12/2016 TECNALIA Reviewed version with comments from Marco Rossi addressed About SmartNet The project SmartNet (http://smartnet-project.eu) aims at providing architectures for optimized interaction between TSOs and DSOs in managing the exchange of information for monitoring, acquiring and operating ancillary services (frequency control, frequency restoration, congestion management and voltage regulation) both at local and national level, taking into account the European context. Local needs for ancillary services in distribution systems should be able to co-exist with system needs for balancing and congestion management. Resources located in distribution systems, like demand side management and distributed generation, are supposed to participate to the provision of ancillary services both locally and for the entire power system in the context of competitive ancillary services markets. Within SmartNet, answers are sought for to the following questions: • Which ancillary services could be provided from distribution grid level to the whole power system? • How should the coordination between TSOs and DSOs be organized to optimize the processes of procurement and activation of flexibility by system operators? • How should the architectures of the real time markets (in particular the markets for frequency restoration and congestion management) be consequently revised? • What information has to be exchanged between system operators and how should the communication (ICT) be organized to guarantee observability and control of distributed generation, flexible demand and storage systems? The objective is to develop an ad hoc simulation platform able to model physical network, market and ICT in order to analyse three national cases (Italy, Denmark, Spain). Different TSO-DSO coordination schemes are compared with reference to three selected national cases (Italian, Danish, Spanish). The simulation platform is then scaled up to a full replica lab, where the performance of real controller devices is tested. In addition, three physical pilots are developed for the same national cases testing specific technological solutions regarding: • monitoring of generators in distribution networks while enabling them to participate to frequency and voltage regulation, • capability of flexible demand to provide ancillary services for the system (thermal inertia of indoor swimming pools, distributed storage of base stations for telecommunication). Partners Copyright 2016 SmartNetD1.1 - Ancillary service provision by RES and DSM Page 1 connected at distribution level in the future power system Table of Contents About SmartNet ....................................................................................................................................................................................... 1 Table of Contents ..................................................................................................................................................................................... 2 List of Abbreviations and Acronyms .............................................................................................................................................. 5 Executive Summary ................................................................................................................................................................................ 7 1 Introduction ........................................................................................................................................................................................ 11 1.1 Scope of the document ......................................................................................................................................... 11 1.2 Deliverable structure ............................................................................................................................................ 11 2 Review of existing ancillary services and market structures ....................................................................................... 13 2.1 Overview of ancillary services .......................................................................................................................... 13 2.1.1 Ancillary services for frequency control ................................................................................................ 14 2.1.2 Ancillary services for voltage control ...................................................................................................... 16 2.1.3 Other ancillary services .................................................................................................................................. 18 2.1.4 Comparative analysis among several EU-countries .......................................................................... 19 2.2 Overview of electricity markets ....................................................................................................................... 24 2.2.1 Market rules ........................................................................................................................................................ 26 2.2.2 Electricity market – Denmark ..................................................................................................................... 26 2.2.3 Electricity market – Italy ............................................................................................................................... 29 2.2.4 Electricity market – Spain ............................................................................................................................. 33 3 Identification of future needs of ancillary services ........................................................................................................... 37 3.1 The SmartNet framework: expected trends in power systems up to 2030 .................................. 37 3.1.1 Electricity generation mix ............................................................................................................................. 37 3.1.2 Electricity consumption mix ........................................................................................................................ 38 3.1.3 Energy storage ................................................................................................................................................... 41 3.1.4 Inertia reduction and increase of frequency deviations .................................................................. 43 3.1.5 Increased flexibility.......................................................................................................................................... 45 3.1.6 Demand response ............................................................................................................................................. 46 3.1.7 Enhancement of cross-border interconnections ................................................................................ 48 3.2 SmartNet high-level scenario ............................................................................................................................ 51 3.2.1 Introduction to scenario design ................................................................................................................. 51 3.2.2 Generation of SmartNet high-level scenarios ....................................................................................... 53 3.2.3 Selection of scenarios of interest ............................................................................................................... 57 3.3 Mapping of the scenarios to the pilot countries ........................................................................................ 64 3.4 The evolution of the ancillary services in the 2030 horizon ............................................................... 67 3.4.1 Novel ancillary services ................................................................................................................................. 67 3.4.2 New requirements to the existing ancillary services .......................................................................