Active demand ADDRESS - ADDRESS Project

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Active demand ADDRESS - ADDRESS Project
ADDRESS
Active Distribution network with full integration of Demand and distributed energy RESourceS

http://www.addressfp7.org

Marina LOMBARDI, Enel Distribuzione

Brussels, June 23rd 2009

active demand
Index

    • The project

    • Highlights of the first year activity

    • Active demand services and products

    • Examples: Active demand for DSOs;
      Active demand for retailers

    • Next Steps

                                     The ADDRESS project         2
                                     Brussels, JUNE 23rd, 2009
The project ADDRESS

          A large-scale, EU 7° Framework Programme, Integrating Project

  To enable the active participation of domestic & small commercial consumers
   to the power system markets and the provision of services to the different
                                    participants

      ƒ    started on June 1st 2008

      ƒ    lasts 4 years (2008 – 2012)

      ƒ    total budget 16 M€, EC financing 9M€

      ƒ    ENEL DISTRIBUZIONE is the COORDINATOR

      ƒ    CONSORTIUM of 25 partners from 11 European countries

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The Consortium

   Experience
   Knowledge
   Competence

Research and               Manifacturers
                               30%
                                           A multidisciplinary group including:
universities
   40%                                       ƒ Research centres
                                             ƒ Distribution and Transmission Operators
                                             ƒ Energy supply and retail companies
                                             ƒ Electric equipment manufacturers
               Utilities                     ƒ Home appliances and white goods manufacturers
                30%                          ƒ Communication equipment and ICT solutions providers

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The Objectives

ENABLE ACTIVE DEMAND

       Develop technical solutions for consumers premises & for the power system

       Propose recommendations and solutions to remove the possible barriers

EXPLOIT THE BENEFITS

       Identify the potential benefits for the stakeholders
       Develop appropriate markets and contractual mechanisms
       Study of accompanying measures to deal with societal, cultural, behavioural aspects

VALIDATE THE RESEARCH
       Validate most promising solution in 3 complementary test sites
DISSEMINATE THE RESULTS
       Conduct dedicated dissemination activities for the stakeholders

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The architecture

Consumers:
• Energy Box is the interface with the aggregator
• optimisation and control of appliances and DER

                                                        AGGREGATOR                    MARKETS                DSO
Aggregator:                                                                         AND CONTRACTS
                                                       Different levels                                            MV – LV
• mediator between consumers and markets               of optimization                                             transfos
• collects requests and signals from markets and       and aggregation
                                                                                                     ADDRESS
                                                                                                                      Sub
participants                                                                                         adaptation
                                                                                                                    station
                                                                                     Energy Supply
                                                            DG & RES
• gathers flexibilities & contributions of                                               and                       DMS

consumers to build Active Demand services                    Retailer                  provision

                                                              Trader                  of services

                                                      BALANCING RESPONSIBLE PARTY
                                                                                                             TSO
                                                    Centralized Generation

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The architecture

                                                                               Distribution System Operator:
                                                                               • Consumers considered are directly connected to
                                                                               the distribution network
                                                                               • Enables active demand and ensures secure and
                                                                               efficient network operation

     AGGREGATOR                    MARKETS                DSO

    Different levels
                                 AND CONTRACTS
                                                                MV – LV
                                                                               Markets and contracts:
    of optimization                                             transfos       • Energy supply
    and aggregation                                               Sub
                                                  ADDRESS
                                                                 station       • Ancillary services: voltage regulation, tertiary
                                                  adaptation
                                  Energy Supply                                reserve
         DG & RES
                                      and                       DMS
          Retailer                  provision
                                                                               • Balancing services (incl. compensation of RES
                                   of services
                                                                               variability)
           Trader
                                                                               • Overload and network congestion relief
   BALANCING RESPONSIBLE PARTY
                                                          TSO                  • Load shaping services
 Centralized Generation
                                                                               • Power exchange, bilateral contracts

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Approach

INTERACTION
•real-time price and volume signals
•real-time = 20 to 30 min ahead or longer

“DEMAND” approach
                                                 AGGREGATOR                    MARKETS                DSO
• services provided on a voluntary and          Different levels
                                                                             AND CONTRACTS
                                                                                                            MV – LV
contractual basis                               of optimization                                             transfos
• appropriate technologies and request for      and aggregation                                                Sub
                                                                                              ADDRESS
consumers                                                                     Energy Supply
                                                                                              adaptation
                                                                                                             station
                                                     DG & RES
                                                                                                            DMS
• accompanying measures for societal and                                          and
                                                      Retailer
behavioural aspects                                                             provision

                                                       Trader                  of services

                                               BALANCING RESPONSIBLE PARTY
DISTRIBUTED intelligence and                                                                          TSO
                                             Centralized Generation
local optimisation

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Methodology
                               WP8 – ENEL DISTR
                               Project Management

                          WP1 – EDF
             Concepts, Requirements and Scenarios

            WP2 – IBEDROLA
                                    WP3 – ENEL DISTR
           Metering, DSM, DER                                           WP5 –
                                   Active grid operation
         flexibility management                                        UNIMAN
                                                                  Acceptance
                         WP4 – ABB                               and benefits
           Communication architecture for smart grids            for the users
                    with active demand

                           WP6 – KEMA
          Field testing for validation of most promising
          solutions and project outcomes assessment

                                WP7 – CASSINO
                   Dissemination and exploitation of the results

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Highlights of the first year activity

active demand
Highlights of the first year activity (1/3)
Refinement of the first architecture and identification of the main issues/barriers:

           • energy box: interaction with the meter; ownership; regulatory rules

           • the relationship between aggregator and the other players
                – in ADDRESS the aggregator role will not be played by DSO or TSO…
                – one or more aggregator for each consumers?

           • impact of AD on the operation of the grid: need for technical validation by DSO, TSO?
             conflicting interests among players…

           • Information: which data to exchange (e.g. localization of active demand); ownership &
             confidentiality

           • acceptance issues

           • how to monitor/guarantee the delivery of the proposed service?

           • risks: e.g. uncertainty on AD availability, energy “payback” effect

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Highlights of the first year activity (2/3)

     Potential flexibility of consumers:
     - Analysis of domestic loads, generation and storage systems
     - Classification of consumers
     - Survey on energy boxes

     Requirements for service provision:
     - Survey of DSI programmes
     - Definition and classification of players:
        - Roles, stakes and constraints, expectations, possible services
     - Standardisation of services

     Focus on aggregator
     - Survey on the existing aggregators

     Integrated toy example to illustrate the concepts of ADDRESS

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Highlights of the first year activities (3/3)
   Definition of scenarios:

   -   Collection and analysis of country specific aspects

   -   Horizon: 2020 and steps to go there

   -   Success targets

        - 4 European contexts with different probability and level of success with respect
          to an ADDRESS future

        - Focus on success factors and drivers:
           - Climatic factor (heating or cooling dominance)
           - Consumer density
           - Enabling technology
           - Industry infrastructure

        - Methodology to assess success based on impacts of AD on all the players’
          stakes
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Group of users, experts and stakeholders
Composition
                                                                                   BELGIUM:
                                        FRANCE                                     •SPE-LUMINOUS:
                                        •ADEME: public agency                       Balancing
     watch dog                                                                      Responsible Party
                                        •ERDF: DSO
     regulators
                                        •RTE: TSO
    associations                        •CAPENERGIES: association
    researchers                                                                        SWITZERLAND
       utilities               CALIFORNIA                                              •EKZ: DSO
                               •EPRI: Electric Power                                   •HES SO: University
                                Research Institute

                                                                               ITALY
 Participating to the survey
                                                                               •AEEG: regulator
    about the potential                   SPAIN
                                                                               •ALTROCONSUMO: watch dog
 benefits and perception of               •EUTC: association
                                                                               •CONFARTIGIANATO: association
       active demand                      •ITA: research
                                                                               •FEDERUTILITY: association
                                          •ITE: research
                                                                               •TERNA: TSO
                                          •REE: TSO

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Active Demand services and
products

active demand
ADDRESS services and products
Definitions

   An ADDRESS service is a specific instance of the use of basic active demand
   products, e.g.:
            - Load shaping
            - Tertiary reserve
            - Balancing energy
            - Congestion management

   An ADDRESS product is what aggregators provide and it’s used to create the
   services:
        - a specified power capacity to be delivered by an aggregator over a specific
          time horizon

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The ADDRESS products: classification

  AD Products            Conditionality                        Typical example
  Scheduled                                 obligation to provide a specified demand
                        Unconditional
  Re-Profiling                            modification (reduction or increase) at a given
                         (obligation)
     (SRP)                                                     time

  Conditional
                          Conditional        capacity to provide a specified demand
  Re-Profiling
                           (option)            modification during a given period
     (CRP)

 shape of the basic power
 delivery and its timing for
 easy trading and building

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Examples of Active Demand
services application

active demand
Active Demand for DSOs

 - to ensure electricity distribution
 - operation, maintenance, development of the distribution
 network

                                   - to provide transparent and non discriminatory access to all network users
                                                        - secure reliable and efficient operation of the network

 - contribution to voltage and power flow control and
 relief of overloads and congestions
 - reduction of losses;                                                - voltage regulation and power flow control
 - defer network investments                                                        -tertiary active power reserve
 - improve of security of supply                            -smart load reduction to avoid blind load shedding

                    -SERVICE: Planned load reduction
               -PRODUCT: Scheduled Load reduction
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Example of a DSO’s Active Demand service (1/3)
 Scheduled load reduction to solve network constraints
sd SRP-SLR(Scheduled Re-Profiling Scheduled Load Reduction UML)

                                                                                       Market                                         Aggregator                                                      Energy Box

        DSO                                             TSO                                                                                                              Actors participants                                         Consumer

                                                                                    (from Actors)                                     (from Actors)                                                   (from Actors)
                       1.Detection problem process()                                                  The matching process
                                                                                                                                                      The process of the
                                                                                                      could be launched in                            aggregation could be
                                                                                                      the defined Time
                       2.Determination solutions process()                                                                                            launched in the
                                                                                                      frame (gate closure)                            defined Time frame
                       3.Evaluation solution process()

              4.send(information technical-AD-other)

                               5.request(seek offers)
                                                                                                                                                         6.make offers process()
                                                                                                                                                                                               8.make offers process()
                                                                                                       7.send(submit offers )

                                                                                                             9.send(submit offers )

                                                                                                      10.matching activation process()

                         12.send(allocations & merit order list submitted)                                11.send(allocations & merit order positions submitted)

                       13.(DSO checking feasibility process)

                       14.(DSO make equivalent TSO network
                       process)

                     15.send(technical result)

                                                                    16.checking technical feasibility process()
                    17.send(acknowledgement)

                                                 18.send(acceptance at gate closure time scheduled)
                                                                                                                                                         19.send(AD load reduction)

                                                                                                                                                                                                              20.send(AD load reduction)

    (from Actors)                                   (from Actors)                                                                                                            (from Actors)                                          (from Actors)

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Example of a DSO’s Active Demand service (2/3)
Scheduled load reduction to solve network constraints
1. DSO detects a problem (i.e. constraints)
2. DSO determines possible solutions of the problem
3. DSO evaluates which is the best solutions and their price
4. DSO informs the TSO of the problem and possible solutions
5. DSO goes to the market to seek offers to meet its needs
6. Aggregators prepare their offers for the market
7. Aggregators send their offers to the market
8. Other market participants prepare their offers for the market
9. Other market participants send their offers to the market
10. At the gate closure, the market launches the matching process
11. The market sends the results to the other participants
12. The market sends the results to the DSO
                                          The ADDRESS project         21
                                          Brussels, JUNE 23rd, 2009
Example of a DSO’s Active Demand service (3/3)
13. DSO verifies the technical feasibility of the solutions.
14. DSO aggregates the distribution network situation at the connection
    point with the TSO
15. DSO sends this situation to the TSO for verification
16. TSO verifies the technical feasibility of the situation
17. If everything is OK the TSO sends an acceptance signal to the DSO
18. DSO notifies the Aggregator of its acceptance. This is the gate closure
    for the negotiation
19. The aggregator informs, at a set time, the flexible solution for these
    consumers through the Energy Box as per engagement

     Depending on the market structure and rules, different, less or additional
     exchanges may be needed between the players involved in the provision of the
     service.

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Active Demand for RETAILER

- To purchase electricity on the wholesale market
- To supply electricity to its customers respecting contracts
and meeting the declared consumption programme

                                                 - To maximise its profits under constraints of risk management

-To optimise short term purchases and sales
-To minimise short term risks by an active demand reserve for activation during high
imbalance situations
- To facilitate structuring long term purchasing contracts strategically structuring its
portfolio of consumers and wholesale suppliers

                                                                       Long term planning, critical period detected:
      - in order to minimise risk, the retailer might buy an AD reserve to be activated in case situation occurs
                                                         Day ahead the retailer optimises purchases and sales:
                    -as part of this optimisation, the retailer might buy a load shaping service provided by AD

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Use Case illustration (1/3)

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Use Case illustration (2/3)
1. The retailer performs its optimisation process and defines its needs
2. The retailer goes to the day ahead market in order to seek offers to meet its needs. It
   can also make a tender to establish bilateral contracts.
3. The Aggregators prepare their offers for the market.
4. The Aggregators send their offers to the market.
5. The other market participants prepare their offers for the market.
6. The other market participants send their offers to the market.
7. At the gate closure, the market launches the matching process.
8. The market sends the results of the matching process to the retailer
9. The market sends the results of the matching process to the other market participants
10. The market sends the results of the matching process to the aggregator
11. The aggregator provides the DSO(s) with the relevant information of its offer (e.g. the
    MW amount, the duration and the period of the offer and the electrical node(s) AD are
    connected to).

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                                             Brussels, JUNE 23rd, 2009
Use Case illustration (3/3)
12.    DSO verifies the technical feasibility of the AD service on the distribution grid
13.    DSO aggregates the distribution network situation at the connection point with the
       TSO
14.    DSO sends this situation to the TSO for verification
15.    TSO verifies the technical feasibility of the AD service on the transmission grid
16.    If everything is OK the TSO sends an acceptance signal to the DSO
17.    The offer is validated and the DSO notifies the Aggregator of its acceptance
18.    The aggregator informs the TSO on the MW amount, during what period and to which
       actor it sold AD (if an imbalances settlement mechanism exists).
19.    The aggregator activates, at a set time, the flexible solution for these consumers
       through the Energy Box as per engagement

       Depending on the market structure and rules, different, less or additional exchanges may be
       needed, e.g. between the retailer and aggregator, with the Balancing Responsible Parties, between
       aggregator and System Operators, …

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                                                   Brussels, JUNE 23rd, 2009
Next steps

active demand
Next steps
  ADDRESS Vision (WP1):
     – Technical and commercial architectures
     – Definition of ADDRESS Scenarios
     – Application of the architecture to the scenarios
  Specifications
      – Detailed specifications for exploitation of DDER flexibility and service provision at
          consumers and aggregator levels (WP2)
      – Detailed specifications for control and automation of distribution networks with AD
          (WP3)
  Communication (WP4)
     – Survey on communication requirements
     – Continue information model: modeling of the players and their interactions
  Acceptance and market (WP5): start work on
      – Models of benefits
      – Consumers engagement
      – Market mechanisms and contractual structures
  Test sites (WP6)
       – Start selection of test sites and definition of test objectives
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                                                 Brussels, JUNE 23rd, 2009
Next Public Results

 Date                                       Description
            Conceptual architecture including description of: participants, signals
  Sep. 2009 exchanged, markets and market interactions, overall expected system
            functional behaviour

  Oct. 2009 Application of the conceptual architecture in 4 or 5 specific scenarios

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Thank you for your attention !

active demand
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