Active demand ADDRESS - ADDRESS Project
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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 started on June 1st 2008 lasts 4 years (2008 – 2012) total budget 16 M€, EC financing 9M€ ENEL DISTRIBUZIONE is the COORDINATOR CONSORTIUM of 25 partners from 11 European countries The ADDRESS project 3 Brussels, JUNE 23rd, 2009
The Consortium Experience Knowledge Competence Research and Manifacturers 30% A multidisciplinary group including: universities 40% Research centres Distribution and Transmission Operators Energy supply and retail companies Electric equipment manufacturers Utilities Home appliances and white goods manufacturers 30% Communication equipment and ICT solutions providers The ADDRESS project 4 Brussels, JUNE 23rd, 2009
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 The ADDRESS project 5 Brussels, JUNE 23rd, 2009
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 The ADDRESS project 6 Brussels, JUNE 23rd, 2009
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 The ADDRESS project 7 Brussels, JUNE 23rd, 2009
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 The ADDRESS project 8 Brussels, JUNE 23rd, 2009
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 The ADDRESS project 9 Brussels, JUNE 23rd, 2009
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 The ADDRESS project 11 Brussels, JUNE 23rd, 2009
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 The ADDRESS project 12 Brussels, JUNE 23rd, 2009
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 The ADDRESS project 13 Brussels, JUNE 23rd, 2009
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 The ADDRESS project 14 Brussels, JUNE 23rd, 2009
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 The ADDRESS project 16 Brussels, JUNE 23rd, 2009
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 The ADDRESS project 17 Brussels, JUNE 23rd, 2009
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 The ADDRESS project 19 Brussels, JUNE 23rd, 2009
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) The ADDRESS project 20 Brussels, JUNE 23rd, 2009
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. The ADDRESS project 22 Brussels, JUNE 23rd, 2009
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 The ADDRESS project 23 Brussels, JUNE 23rd, 2009
Use Case illustration (1/3) The ADDRESS project 24 Brussels, JUNE 23rd, 2009
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). The ADDRESS project 25 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, … The ADDRESS project 26 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 The ADDRESS project 28 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 The ADDRESS project 29 Brussels, JUNE 23rd, 2009
Thank you for your attention ! active demand
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