Identifying flexibility options 3 2 - WindNODE
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Best practice manual Identifying flexibility options 1 How to make 2 Why flexibility 3 How to find flex- money from is important ibility in the ter- flexibility and how to tiary sector, indus- Page 6 evaluate it try, mobility and Page 14 neighbourhoods Page 22
Best practice manual | Identifying flexibility options 2 Contents Executive summary 3 Editorial 5 Flexibility in the electricity system 7 What to consider when increasing system flexibility 15 Clustering of flexible systems 19 Best practices 23 Tertiary sector (trade, commerce and services) Use of flexibility in a Schwarz Group-owned prototype store (Lidl/Kaufland) 25 Industry 1. Intelligent industrial load management in Berlin at Siemens 31 2. The ZIEL system developed by Fraunhofer IWU in cooperation with Deckel Maho Seebach 37 Mobility Intelligent vehicle charging at Berliner Stadtreinigung (BSR) 41 Neighbourhoods Intelligent energy management in Prenzlauer Berg, Berlin 47 Toolkit for identifying flexibility: checklist for flexible loads 53 Communicating about flexibility 55 Outlook 57 Abbreviations and acronyms 59 References 60 Publication details 61
3 Best practice manual | Identifying flexibility options Executive summary One of the main goals of the providers – in the identification and • In the industrial sector, Siemens WindNODE project is to develop practical use of flexibility potential used modern measuring devices innovative ways to accommodate in their business environment. The and an energy management fluctuating electricity generation and experience that WindNODE partners system to record and categorise demand. Working in various coordi- have gained in specific real-world industrial processes. This demon- nation committees, project partners applications can serve as a resource strated that it is possible to deploy reviewed the many valuable contri- for future flexibility providers in flexibility options in accordance butions of individual subprojects and various branches and industries. with various optimisation goals, compiled a manual of best practices such as the maximum integration that can be used as a blueprint for Some highlights from our work at of renewable energy or compliance applications outside WindNODE. WindNODE: with limits on electricity withdraw- Two of these coordination commit- • At two branches of the Schwarz als and peak load time windows. tees examined the overarching issue Group-owned supermarkets Marketing has already been carried of flexibility from different angles. Lidl and Kaufland, tests were out on a test basis via the Wind- Work by the Identifying Flexibilities performed to evaluate the potential NODE flexibility platform. committee culminated in the manual for a battery storage system to • The Fraunhofer Institute for Ma- you now hold in your hands, which relieve the grid by storing energy chine Tools and Forming Technolo- provides guidance on the identifi- during times of peak production. A gy (IWU) collaborated with Deckel cation and use of flexibility options. decentralised energy management Maho Seebach to develop the In early 2021, a second coordination system in these showcase stores 'ZIEL' system for intelligent energy committee – Flexibility, Market and could be used to control electricity and load management. The system Regulation – published a report consumers – particularly cooling shifts the timing of energy-intensive broadening this perspective: rather units – and thus respond to energy production orders depending on than examining specific flexibility requirements by increasing or de- energy price and actively controls options in individual companies, it creasing output. In 2019, the battery decentralised energy infrastructure considers the available marketing storage system at the Lidl branch in factories. This allows manu- options and their regulatory frame- in the district of Berlin-Schöneberg facturing companies to design work in the WindNODE region was connected to day-ahead future-proof production methods and beyond. and intraday markets, allowing it with the flexibility to respond to to participate in fully automated changing energy needs. 'Best practice manual: identifying marketing. The storage system also • In the mobility sector, Berliner flexibility options' provides acces- successfully provided flexibility Stadtreinigung (BSR) updated the sible information to assist readers in the test run of the WindNODE energy software developed by – especially prospective flexibility flexibility platform. WindNODE partner ÖKOTEC.
Best practice manual | Identifying flexibility options 4 BSR used the software to analyse incentives to utilise these options the potential for flexibility opti- in practice. In the next phase of the misation in its fleet and create a energy transition, the main political prototype integrating this potential and regulatory challenge will be into regular operation. This made to reconcile profitable marketing it possible to reduce grid fees and options and suitable rules for identify three flexibility options: flexibility in the energy system with supply optimisation on the elec- the available supply and existing tricity market, on-site dynamic demand. This manual can help load management and use of the readers optimise the integration 50Hertz flexibility platform. and use of renewable electricity • In a Berlin neighbourhood equipped in a range of environments – from with smart building technology, residential neighbourhoods to the Borderstep Institute coop- factories – and adapt demand to erated with partners to test the the availability of local renewable market-oriented and grid-friendly energy. In this sense, 'Best practice control of a combined heat and manual: identifying flexibility power (CHP) plant and power-to- options' provides an important heat (PtH) elements. The building roadmap for the journey to an stock and local heating grid and intelligent energy system. heating network were used as ther- mal storage. Flexibility created in this process can be made available via the 50Hertz flexibility platform or on the energy market as a virtual power plant. This best practice manual elaborates on the exam- ples listed above. It also provides a checklist for identifying flexibility, which allows users to compare available flexibility options based on simple, readily identifiable evaluation criteria. But flexibility providers will still need adequate
5 Best practice manual | Identifying flexibility options Editorial WindNODE is charting a path In the context of the energy system, offers guidance on evaluating and towards a future in which renew- the concept of flexibility has a fairly marketing flexibility options in able energy meet almost all of our straightforward definition. It refers the existing legal and regulatory electricity needs. Current estimates to the ability of elements in this framework. It supplements these indicate that Germany derives system to accommodate fluctua- recommendations by looking ahead more than 40% of its electrical tions in electricity generation and to the marketing opportunities for energy from renewable energy consumption by adjusting output flexibility that may emerge in the sources, primarily the wind and in response to an external signal. near future. sun.1 That's more than the most By utilising flexibility, a factory can optimistic among us would have shift a portion of its production to We believe that the issue of flex- dared to hope just a few years ago. coincide with the movement of ibility must be examined in terms This figure is calculated as a yearly strong winds across the country. A of its potential environmental and average because of natural fluctua- supermarket can tap flexibility po- economic implications – tions in the supply of wind and solar tential to heat and cool its facility a perspective that, we realise, energy. On windless nights, there is ‘in advance’, using the mass of the diverges from the more sober, very little renewable electricity, but building itself as thermal storage. business-oriented standpoint on the on sunny, gusty days, wind and solar subject. The distance between these power plants in some regions can In the WindNODE project, we have perspectives can be explained in generate many times the amount of systematically identified flexibility part by the absence of effective, electricity required. The risk of over- on the user (i.e. consumption) side in technology-neutral incentives for loading the power grids can then companies from various segments companies to market flexibility in be so severe that renewable energy of the economy: the tertiary sector ways that stabilise the system by generation must be curtailed. (trade, commerce and services), relieving the burden on the grid. industry, mobility, and household In the coming years, decision- The volatility of green electricity and neighbourhood management. makers will face a major challenge: generation points to the most chal- This best practice manual highlights how to design framework conditions lenging aspect of further renewable some of these examples. Our goal is that harmonise these perspectives energy expansion: system integra- to demonstrate that an oversupply while maximising benefits. The task tion. We must develop the tools to of renewable electricity can be ahead, in other words, is to develop ensure that the energy system can utilised in intelligent ways. economically feasible methods to supply the right amount of electrical meet energy system needs. energy in the right place at the But this manual doesn't just present right time. As a general principle, successful case studies. It also We hope that you will join us in this even systems with the capacity to introduces key concepts and pro- effort – as innovators in the identi- generate large amounts of renew- vides tools to help readers answer fication of flexibility and as allies in able energy must guarantee the basic questions about flexibility. the regulatory debate for successful balance between electrical energy The examples featured in the main system integration. Above all, generation and consumption at all sections of this manual outline the however, we hope you enjoy reading times. Grid expansion and upgrades most important factors for readers this guide. play a pivotal role in maintaining to consider when identifying this equilibrium, but they are by no flexibility. They also provide con- The Authors means the only significant factor. crete resources, including checklists Berlin, July 2020 Flexibility options, in particular, are and recommendations for internal becoming an increasingly important communication, to assist in this part of this process. process. In addition, this manual 1 At the time of publication, no reliable estimates were available for the share of renewable energy in Germany’s gross electricity consumption in 2019. Based on the figures for the first three quarters of 2019, the Centre for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW) and the German Association of Energy and Water Industries (BDEW) estimate the share at roughly 43% (BDEW, ZSW 2019). For more information, see https://www.bdew.de/presse/presseinformationen/ erneuerbare-decken-fast-43-prozent-des-stromverbrauchs/ (in German).
Best practice manual | Identifying flexibility options 6 Applications and marketing opportunities for flexibility in the electricity system Types of generation and load-side flexibility Marketing Purpose Conventional generation Established Market Day-ahead Intraday Over-the-counter (OTC) Generation from renewable energy Storage system + power-to-X May be developed in the future Grid Mobility Grid congestion management Voltage stability Reactive power Industry Neighbourhoods Established System Frequency stability (reactive power or balancing energy) Tertiary sector
7 Best practice manual | Identifying flexibility options Flexibility in the electricity system The following pages introduce basic concepts related to flexibility, beginning with a definition of the term. Individual sections then describe specific applications of flexibility in the electricity market, ancillary services and grid congestion management. What is flexibility? photovoltaics (PV), is an essential internal discussion process. This step in decarbonising the energy definition guided our analysis of In order to guarantee an affordable system. Natural fluctuations in the project findings. and accessible energy supply, supply of these energy sources systems must have the flexibility to demand greater flexibility in the ‘“Flexibility" refers to the ability of adjust their electricity production electricity system. Flexibility options elements in the energy system to or demand. Why is flexibility so are necessary to achieve each of accommodate fluctuations in elec- important? For one thing, it can re- the energy industry's three goals tricity generation and consumption store the required balance between for the energy supply: affordability, by adjusting capacity in response production and consumption in the security and environmental sus- to an external signal. Elements that event of short-term disruptions. It tainability. For all of these reasons, provide these abilities are referred can also help relieve the load on flexibility is a key component of the to as “flexibility options". Wholesale critical grid resources to maintain energy system. markets (day-ahead, intraday) the transmission of electricity. In and measures to eliminate grid the long term, flexibility will play No universal definition of 'flexibility' congestion can create demand for a crucial role in achieving climate has emerged from the debate on flexibility. Flexibility can also be change targets. That's because the future of the energy industry. requested on the balancing markets expanding renewable energy, WindNODE participants developed or for the provision of additional especially from wind power and the following definition in an ancillary services. The technical
Best practice manual | Identifying flexibility options 8 Fabian Stein potential of a flexibility option in the formerly of Green Cycle energy system can be quantified by Umweltmanagement GmbH determining the following minimum parameters: As part of the WindNODE project, the • the value range of the change Schwarz Group is offering its battery in capacity (positive/negative), storage system on the spot market. Its • the duration of the change 252-kWH/100-kW battery is available as in capacity and a flexibility option on the day-ahead • the lead time before the change and intraday markets. Day-ahead fore- in capacity. casts are used to develop plans for The technical flexibility potential battery deployment, and over the following days, the output of the energy system is based is regulated in accordance with these plans. This makes on supply and demand. When it possible to use the battery at the precise times when calculating the economic flexibility prices on the day-ahead market are low or even negative, potential, it is important to consider which reflects an oversupply of renewable energy. Energy can the costs and benefits achieved be stored in the battery until it is used at a later time. by providing flexibility within the When spot market prices are high, the battery is discharged, existing regulatory framework.’2 which means that the retail store draws less power from the grid. This process has been in use since the As this definition indicates, flexibility beginning of 2019 and has proved to be very in the electricity system has multiple reliable, as trading on the day-ahead market applications. It can be deployed to is fully automated. compensate for short-term changes in residual load on the wholesale markets, to provide ancillary services purchased within the balance group required in the electricity system. In and to eliminate grid congestion. must correspond to the total amount the German market area, short-term The processes and measures consumed and sold. The market trading is initially conducted in the necessary to manage these appli- participant tasked with managing day-ahead auction on the European cations – some of which proceed in imbalances in each group – called Power Exchange, EPEX SPOT SE. parallel – are explained in greater the balance responsible party (BRP) Bids for amounts of electricity can detail in the following sections. – must submit a schedule in ad- be submitted on an hourly basis until vance for every quarter-hour billing noon on the day before delivery. Flexibility in the interval. This schedule provides infor- electricity market mation on the amount of electricity Electricity providers use information generated and consumed, as well about awarded bids to develop a The primary objective of electricity as the amount purchased and sold plan for the dispatch of electricity markets is to balance generation and to the relevant transmission system from their power plants. They must consumption in the overall system at operator (TSO). The TSO serves as the submit a timetable communicating all times. This is necessary in order to balance group manager (BGM) and these plans to the responsible TSO maintain supply services. Supply and is responsible for transmitting energy by 2.30 p.m. Deviations from the demand are aggregated for a given through the grid. day-ahead forecast can be offset time period to preserve equilibrium. later on the intraday market. Like Resources are then deployed as Electricity can be traded in various the day-ahead market, the intraday cost-effectively as possible to align ways. Individual parties can create a auction makes it possible to trade the supply with the demand. bilateral contract called an over- products at quarter-hour intervals, the-counter (OTC) transaction. An- with bids accepted until 3.00 p.m. on Regardless of the specific type of other possible approach is trading on the day before delivery. Schedules marketing or service, actors must an electricity exchange. Long-term for each balance group can then be assigned to a balance group trading is conducted on the futures be prepared in 15-minute blocks to participate in the market. Each market; short-term trading is carried to maintain the balance between balance group must restore balance out on the spot market. Due to the supply and demand. in the best possible way within 15 higher temporal resolution of its minutes. This means that the total pricing model, the spot market is an Actual delivery occurs 9–36 hours amount of electricity generated and indicator of the amount of flexibility after the two auctions. (The precise 2 Cf. WindNODE (Ed.): Marktdesign, Regulierung und Gesamteffizienz von Flexibilität im Stromsystem – Bestandsaufnahme und Herausforderungen (April 2019), p. 12f. Available online at https://www.windnode.de/fileadmin/Daten/Downloads/Publikationen/PRP_Marktdesign__Regulierung_und_Gesamteffizienz_von_Flexibil- it%C3%A4t_im_Stromsystem.pdf (in German).
9 Best practice manual | Identifying flexibility options timing depends on the auction – on both the supply and demand it must be economically feasible to and the traded product.) During side. When supply is matched with adjust production or consumption this period, market participants demand on the hourly day-ahead – even if only for a period of several receive updated forecasts of load market, flexibility can maintain the hours – despite the start-up and and feed-in from renewable energy balance between the ‘non-shiftable’ shut-down costs or the expenses sources, and power plant outages portion of the load on the one incurred from a shift in demand. may occur. Continuous intraday hand, and the supply available trading can compensate for the re- from fluctuating renewable energy If real-time output deviates from sulting deviations. In contrast to the sources and must-run power plants day-ahead forecasts, the discrep- auctions described above, tenders on the other. High market prices ancy can be eliminated on the on intraday markets are awarded reflect a shortage of supply, while continuous intraday market. There based on an order book. This means low or even negative prices reflect a are incentives for the BRP to do so, that prices are not uniform for a surplus and encourage the provision including its contractual obligation certain hour or quarter-hour, but of flexibility. The number of hours to adhere to the expected sched- are calculated individually for each with high market prices declined ules at all times (‘balance group successful trade. Exchanges close between 2011 and 2015 but has loyalty’) and the need to purchase 30 minutes before the settlement trended upward since 2016; hours balancing power to compensate for time. Bids from the same control with negative prices have increased any shortages in the balance group. area can be awarded until five over the entire period. Due to the minutes before the delivery time. lead time of several hours, many The shorter window of time be- power plants, storage facilities and tween bidding and delivery increas- From the market structure de- switchable or shiftable loads may es the technical requirements for a scribed above, it's clear that flexi- be able to offer flexibility on the given flexibility option. Restrictions bility is a necessary component of day-ahead market. In order for a on production planning can also both phases of short-term trading unit to provide flexibility, however, preclude certain flexibility options, FCR aFRR mFRR Activation time �� seconds � minutes �� minutes Usually 5 MW Usually 5 MW Minimum bid size ± � MW (positive or negative) (positive or negative) Weekly (Tuesday Tender period for the following Daily Daily week from (for the next day) (for the next day) Monday–Sunday) Time intervals 6 time slices of 6 time slices of - per day 4 hours each 4 hours each Price per kW and Price per kW and Compensation Price per kW price per kWh price per kWh Multiple marketing Possible, as long as technical requirements can be met channels – even if the service is provided at the same time Table 1: Properties of balancing power products according to 50Hertz et al. (2019b), VDN (2003), VDN (2007) and VDN (2009).
Best practice manual | Identifying flexibility options 10 especially flexible consumption Dr Severin Beucker systems, from participating in the Borderstep Institute intraday market. In addition, contin- Today, we can already use the modular uous trading demands greater effort generating units and storage systems in from market participants than do residential neighbourhoods to provide auctions. These factors reduce flexibility for balancing power on the offers of flexibility with shorter lead order of several 100 kW per neighbour- times. As a result, prices on the hood. With intelligent energy manage- intraday market fluctuate more ment, this power can be integrated into dramatically than those on the buildings without requiring residents to day-ahead market. sacrifice comfort. Although this order of magnitude seems small in comparison to other flexibility potentials, it is Flexibility to provide highly significant because it opens up the building sector, ancillary services which needs to meet strict climate targets. Over the next few years, this potential could easily double or triple The Energy Industry Act (EnWG) of thanks to the expansion of electromobility and related 7 July 2005 (section 11 ff.) obligates charging infrastructures. However, the grid operators to ‘... operate, maintain likelihood that this opportunity will mate- and optimise a secure, reliable and rialise depends on incentives that reward efficient energy supply network with- flexible behaviour, and these are not yet out discrimination...’ Grid operators offered on the energy market. are responsible for tasks including operations management, frequency and voltage maintenance, and the and tenders begin at 5 MW.4 Ten- on the part of the BRP and grid restoration of supply. For voltage dering takes place daily in six time operators. It has been facilitated maintenance, the acceptable slices of four hours each. Prices are by various developments, including voltage range must be maintained calculated per kW for the provision more sophisticated weather fore- during normal operation (e.g. with of aFRR and mFRR, and per kWh for casting, the formation of an Inter- reactive power), and excessive the actual retrieval. national Grid Control Cooperation changes in the load on equipment (IGCC) to avoid opposing requests must be preventable (with short-cir- Due to the market design for the for balancing power, and greater use cuit power) in the event of a fault. In procurement of balancing power of the intraday market for balance addition, for supply restoration, a suf- products, ancillary services are a group management. The number of ficient number of power plants must key marketing channel for flexibility. providers has risen significantly at be able to start up independently of The tendered FCR is set at a total of the same time. These factors have an existing power supply. 3,000 MW for continental Europe led to increased competition and and is distributed to the individual a sharp decline in service prices. Different kinds of balancing services grid operators on a percentage In contrast, the price per kWh has are activated to stabilise the grid.3 basis according to load. Since 2012, risen dramatically in the same time These can be divided into three Germany has participated in an period. This is partly due to the categories: frequency containment international FCR cooperation. Over inclusion of new technologies like reserve (FCR), automatic frequency time, this led to the development of PtH and biogas plants. Although restoration reserve (aFRR) and a joint call for tenders with Swit- these technologies can be offered manual frequency restoration zerland, the Netherlands, Austria, at low costs per kW, they must be reserve (mFRR). Activation times for Belgium and France. provided at high costs per kWh these services range from 30 sec- because of the electricity prices to onds to 15 minutes (see Table 1). FCR Although renewable energy (and be paid or the lack of compensation is tendered on a weekly basis. The the fluctuating feed-in associated available under the EEG. minimum bid size falls in a control with it) has expanded in Germany in range of ±1 MW, and provision is recent years, the tendered capacity compensated per kW. In contrast to for aFRR and mFRR has fallen. This FCR, aFRR and mFRR are separated seemingly contradictory correlation by positive and negative gradients, is the result of improved efficiency 3 Interruptible loads can also be used for this purpose. These loads are consumption units that can reduce their power consumption by a certain amount at the request of the TSO. Quickly interruptible loads (SNL) are distinguished from immediately interruptible loads (SOL). Since these products are rarely requested, they are not discussed here. 4 Tenders can begin at 1 MW if only one offer is submitted per product and control area.
11 Best practice manual | Identifying flexibility options Flexibility for Andreas Hüttner grid congestion Siemens AG management Here at Siemens, we've mainly focused on identifying flexibility for the Section 13 of the Energy Industry purpose of peak shaving, i.e. to Act (EnWG) specifies a cascade of smooth out peak loads. But we still measures that can be taken by TSOs believe that a market-based mechanism for operations management and for increasing the use of flexibility the maintenance of system security. in grid congestion management is an In general, operators must comply effective tool to facilitate the in- with the sequence prescribed by law. tegration of renewable energy; it can First, grid-related measures – par- also provide another welcome source of revenue for flexible ticularly network switches – are used loads. That's why, as part of the WindNODE project, we to relieve heavy loads on equipment, participated in marketing flexibility for grid congestion in accordance with sections 13(1) management via the innovative WindNODE flexibility plat- and 13a(1) EnWG. The TSO may then form. The platform design, which enables users to carry out order redispatch measures, which day-ahead and intraday management, met our needs for pro- reduce generation at power plants duction planning. It was interesting to see that flexible in certain areas while ramping up loads are more valuable near grid bottlenecks. Of course, production by a corresponding some aspects of the platform can be improved: for example, amount in others. If these measures when bids are submitted, the platform operator should are not sufficient, section 13(2) allows consider block bids and conditions, such as the selection the TSO to demand adjustments to of three out of eight possible hours. This would increase electricity feed-in and consumption. the supply and the value of flexibility. It would also be In conjunction with section 14(1) interesting to reverse the pay-as-bid auction of the Renewable Energy Sources procedure so that users have an opportunity Act (EEG), this provision also ex- to react as a system operator to a price plicitly applies to renewable energy signal given by the platform. systems, CHP plants and mine gas plants. The procedure initiated by the grid operator to reduce feed-in from these systems is called feed-in under the provisions of the EEG congestion. Competition is also management ('EisMan' or 'EinsMan'). and the Combined Heat and Power limited by the fact that units must Act (KWKG) will be repealed on meet certain geographical criteria Due to the existing grid topology this date, and a uniform redispatch to be considered for use. In the case and the dependence of renewable regime (Redispatch 2.0) will be of redispatch measures, a unit's generation capacity on supply, grid introduced in accordance with ability to relieve congestion on a congestion is increasingly common sections 13, 13a and 14 EnWG. In specific line depends on the loca- along the transmission lines that concrete terms, this means that, in tion of that unit in the grid. This gives connect wind farms in the North to the future, renewable energy plants local actors a competitive advan- load centres in the South. Thus far, and CHP plants with an installed tage over more distant participants TSOs have mainly relied on large capacity of 100 kW and above will and over the TSO, which is reliant on power plants and feed-in man- be required to provide their services a reduction in output. agement to eliminate congestion. for redispatch, as will plants that Much of the potential of small and can be remotely controlled by a To supplement the marketing medium-sized flexible plants to grid operator at all times. Flexible channels for flexibility discussed serve this function has remained consumers will still be excluded above (i.e. the electricity market untapped. However, the amend- from this process. and provision of ancillary services), ment to the Network Expansion WindNODE designed a flexibility Acceleration Act (NABEG) that took In contrast to the wholesale and platform to develop and test the effect on 13 May 2019 includes new balancing markets described in potential to utilise voluntary flexi- requirements for grid congestion the previous sections, facilities bility potential for grid congestion management, which must be are only reimbursed for additional management. This allowed providers implemented by grid operators by costs incurred for grid congestion to offer flexibility voluntarily, with 1 October 2021. The regulations on management. As a result, there is no preference given to certain types feed-in management for renewable no competition for the activation of technology. Flexibility options energy plants and CHPs established of flexibility to eliminate or prevent were available to all grid operators
Best practice manual | Identifying flexibility options 12 participating in the platform, and implementation was coordinated across voltage levels. This additional potential was intended to enable greater utilisation of renewable energy production in cases of grid congestion, demonstrating the prin- ciple of ‘using instead of curtailing’. The approach adhered to market principles as closely as possible and prioritised the identification of the most cost-effective solution.5 5 For a more detailed description of platform features and a summary of results, see 'Flexibility, markets and regulation: insights from the WindNODE reality lab', which was published in January 2021
13 Best practice manual | Identifying flexibility options Flexibility generates more environmental and economic added value! Gesamt Brutto-Inlands- Nettostromerzeugung Anteil erneuerbarer Energien am stromverbrauch in D Total gross domestic fossiler Kraftwerke Net electricity in D generation Brutto-Inlandsstromverbrauch Share of renewable energy in (in TWh) consumption in electricity (in TWh) from fossil-fuel power (gesamt) in Deutschland gross domestic electricity(in TWh) con- Germany (in TWh) plants in Germany sumption (total) in Germany (in TWh) (in TWh) 600 580* 574 574*** 574*** 550 500 450 400 373*** 350 336 326* 294 300 271* 250 245* 209* 211* 200 150 100 150 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Die Graphik veranschaulicht den perspektivi- schen Bedeutungszuwachs von Flexibilität im Energiesystem in Deutschland im Kern unter 2023 Ausstieg aus der 2030 Aktuelle NEP-Planun- Rückgriff auf die * BNetzA Entwicklung 2018, p. 5 von insbesondere Kernenergie ist erfolgt. gen dimensionieren das ** BNetzA 2019, p. 35 drei Größen: Nuclear energy Current grid develop- Übertragungsnetz für *** Bundestag Im Zentrum steht printed die sichpaper 19/13900, p. 26 verändernde has been phased ment plans dimension **** Bundestag printed paper 19/13900, p. 26 einen EE-Ausbau von Erzeugungssituation (projected values) in Deutschland, das heißt out completely. the 65%transmission für das Jahr 2030. erstens sowohl der schrittweise * Öko-Institut 2019, p. 21. Ausstieg aus der grid for a renewable Offizielle Netzplanun- ** According tobis thezum Kohleausstiegsgesetz Jahr 2038 (bei (Coal Phase- energy Kohleverstromung out Act), use of lignite and hard coal for electricity gen fürexpansion of einen EE-Aus- gleichzeitigem generation Ausstieg will be aus der Kernenergie discontinued by 2038 andbis 2050, 65% by the year 2030. bau >65% existieren zum Jahr 2023) undItzweitens respectively. der schrittweise is highly likely that natural gas and There are aktuell currently nicht. Ausbauother fossil-based energy der Erneuerbaren carriers Energien bis (e.g. zummineral oil) no official plans for will still Jahr 2050. Für bedieused for electricity graphische generation, Darstellung des although a renewable energy the share of these fuels in total electricity generation Kohleausstiegs werden die Empfehlungen is unknown. The 123 TWh cited here is based der on the expansion >65%. von dershare Bundesregierung of natural gaseingesetzten and other fossil energy sources in electricity Kommission generation „Wachstum, as of 2030. See Strukturwandel undÖko-Institut 2019, p. 21. Beschäftigung“ (Kohlekommission) – in * BNetzA 2018, p. 9 gutachterlicher ** BNetzA 2019, Interpretation p. 35 – für die entsprechenden Stütz- undp.Zieljahre *** Coalition agreement, 14 **** Section dargestellt. 1(2)(1) EEG z.B. schwarze Kurve). (Absinkende
Best practice manual | Identifying flexibility options 14 580**** 580**** 464**** 420 Projected increase in the importance of flexibility in Germany’s energy system 130** 130** 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 The graph above shows the projected increase These trajectories are represented relative tion and an increase in renewable energy in the significance of flexibility in the German to the change in gross domestic electricity generation. Flexibility may also become more energy system based on changes in three consumption since 2017. There are different important as the costs of flexibility or the indicators over time. The focus is on changes in perspectives on the projected change in gross marginal benefit of grid expansion declines. power generation in Germany associated with domestic electricity consumption for the It is important to note that the confirmed grid a gradual phase-out of coal-fired power gen- period shown. The German federal govern- development plan (NEP) for the transmission eration by 2038 (with a simultaneous phase- ment assumes a gross domestic electricity grid is dimensioned to accommodate an out of nuclear power by 2023) and a gradual consumption ‘slightly below the current level’ expansion of renewable energy to 65% of gross expansion of renewable energy through the at least until 2030; other sources expect domestic electricity consumption by 2030. year 2050. The graphical representation of the consumption to reach 748 TWh by 2030. The coal phase-out (downward yellow curve) is determination of a specific projection for based on an expert interpretation of the rec- gross domestic electricity consumption is ommendations issued for the relevant years by irrelevant to the graph presented here if the the Commission on Growth, Structural Change gross electricity consumption is assumed to and Employment (‘Coal Commission’) estab- remain roughly constant or increase – but lished by the federal government. Changes not decrease. If consumption remains nearly in the share of renewables in gross domestic constant until 2030 (and from 2030–2050), the electricity consumption over time (upward red growing importance of flexibility in the overall curve) are shown based on the trajectories energy system in Germany is clear from the established by law or set as political targets for shaded area between the two curves, which the expansion of renewable energy by 2050. show a decrease in conventional genera-
15 Best practice manual | Identifying flexibility options What to consider when increasing system flexibility Which units are best suited to flexibilisation, and how can these be identified? Prospective providers can begin the identification process by considering certain economic and environmental factors. Key economic factors particular technical systems through incurred beyond those associated to consider when different marketing channels. Such with normal operation. Because identifying systems outcomes vary on a case-by-case most technical units are already for flexibilisation basis, depending on the technical purchased and operated to maxim- system, market conditions and ise resource and process efficiency, The previous sections summarised intended use. however, these flexibility options what flexibility means in the context account for only a minor portion of of the electricity system, as well as It is possible, however, to provide the available potential. which marketing channels for flex- general guidance on the charac- ibility already exist (flexibility in the teristics that make certain units Most of the available flexibility electricity market and flexibility to more suitable for flexibilisation. potential will require prospective provide ancillary services) and which The optimal units are technical providers to invest in developing or could emerge in the future (flexibility installations or processes that refining current capabilities. Expe- to manage grid congestion). can be deployed for the purposes rience has shown, however, that the described above with no additional revenue currently generated from When prospective flexibility pro- investment required for flexibilisa- ‘peak-shaving’ (i.e. smoothing out viders consider whether to identify tion. This generally includes facilities peak loads) or marketing balancing or use flexibility, business indicators and processes that can operate at power is generally not sufficient to naturally play a decisive role. It's any time of day without negatively justify the required investment or impossible to generalise about affecting the original purpose of use to provide an adequate economic the specific revenue or return on (e.g. refrigeration or volume per day). incentive for flexibilisation. investment that can be obtained for In such cases, no costs or losses are
Best practice manual | Identifying flexibility options 16 At the same time, the flexibilisation suggest, the motivation for flexibility is thus the additional technology of company facilities may produce providers to identify flexibility is required (e.g. for communication, secondary effects that are eco- generally environmental in the short measurement and control). nomically desirable. For example, term, and economic only in the an increase in process flexibility can medium to long term (if at all). This is As the level of flexibility falls and the boost the satisfaction and efficiency because providers assume that the resources required for regulation rise, of employees by allowing them marginal utility of grid expansion will energy consumption by the tech- to take more frequent breaks and decline beyond the target year 2030 nology itself becomes more likely rearrange working hours and shifts. (65% renewable energy) or at the to offset the environmental value This can have a positive effect on point when 2050 targets are reached added (e.g. emissions reductions). key figures, including the number for the share of renewable energy in It's important to note, however, of units produced. In this respect, gross electricity consumption (80% that in many cases the activation increased flexibility can provide renewable energy). A reduction in of small amounts of flexibility has direct qualitative advantages in the the costs of deploying flexibility yielded a positive environmental workplace that indirectly contribute would bolster support for flexible balance, even at the household level. to a company’s economic success. systems as a mechanism to benefit The mobilisation of this potential is the overall system and to mitigate therefore not so much a technical Irrespective of this potential benefit, climate change. This would increase challenge as an economic and incentives should be offered to the economic value of flexibility organisational one: as outlined encourage investment in control in the future, and there is much to above, current market structures do technology (sensors/actuators). suggest that the utilisation of flexibil- not reward such measures, and price Demands for such incentives are ity could generate economic profits advantages can't be passed on. often accompanied by calls to (see the graph on page 12, ‘Projected reform the existing system of taxes, increase in the importance of flexi- From an environmental perspec- fees and surcharges.6 Incentives bility in Germany's energy system’). tive, a more complex question is should be designed to target whether the mobilisation of flexi- potential flexibility providers. In the From a systemic perspective, the bility increases or decreases energy future, the same kinds of incentives crucial question today is whether consumption and whether this has that have promoted energy- and identifying and activating flexi- positive or negative implications for resource-efficient systems may be bility can create environmental the energy system or system-wide used to promote flexible systems value added in the form of reduced CO2 reduction. In a fossil-based that benefit the grid. This could life-cycle resource consumption and energy supply, multi-step energy significantly increase the supply of emissions. From an environmental conversions (e.g. old night storage usable flexibility. standpoint, companies that are heating technology: fossil-based considering an increase in system primary energy sources → electricity In order to identify flexibility in flexibility should focus any such → heat) are environmentally disad- practice, both objective and sub- efforts on systems that can provide vantageous because they reduce jective parameters of the load (e.g. flexibility for the energy system efficiency. This need not be the case machine, repository and storage) with little to no additional resource in a supply based on renewable must be recorded and evaluated. For consumption. energy, however, especially if peaks an overview of technical parameters, in renewable energy production please consult the ‘Toolbox for iden- These considerations indicate are only temporary or are limited to tifying flexibility: checklist for flexible that flexibility options within certain locations or regions. Surplus loads’ included in this manual. existing processes in industry, trade, renewable energy can then be used commerce, services, the housing as negative balancing power for Key environmental industry and the mobility sector have flexibility or storage (power-to-x), factors to consider environmental benefits. As shown provided that the grid infrastructure when identifying in the following examples (see ‘Best can accommodate it (‘using instead systems for practices’ section), flexibility in of curtailing’). The loss in efficiency flexibilisation existing units or processes can be resulting from energy conversion tapped with little to no modification. processes does not have significant As the economic considerations From a life-cycle perspective, the environmental effects, because the summarised in the previous section only factor influencing net savings generation systems (wind turbines, 6 or a closer look at promising steps in this direction, see the WindNODE report 'Flexibility, markets and regulation: insights from the WindNODE reality lab', which F was published in January 2021.
17 Best practice manual | Identifying flexibility options solar panels, etc.) ‘pay it back’ by fulfilling their primary purpose of electricity production. The surplus electricity is thus nearly CO2-neutral on the balance sheet. The conversion of this energy makes it unnecessary to curtail wind or solar generators in response to insufficient grid capacity or the need for voltage stabilisation. As a result, negative balancing power contributes little to CO2 emissions. Flexibility can also be used to provide positive balancing power. This occurs when units in the sectors listed above feed electricity into the grid during periods of low renewable energy production. Whether this practice makes environmental sense depends on the unit, its primary use and the type of energy source. If electricity is fed back into the grid from a battery storage unit, for example, the environmental assessment will depend on the share of battery resources available (allocated) for grid stabilisation and the environmental impact of this capacity (e.g. resource consump- tion, CO2 emissions) relative to that of possible alternatives (e.g. supply from biomass, fossil fuels or grid expansion). If, on the other hand, battery storage is used for other purposes as well (e.g. as an emer- gency power source or as a local energy supply for electric vehicles), it's important to clarify how much of the environmental impact is due to the provision of flexibility. Eval- uations of flexibility with positive balancing power are always more complicated, because a higher-level assessment is required to allocate environmental impacts.
Best practice manual | Identifying flexibility options 18
19 Best practice manual | Identifying flexibility options Clustering of flexible systems in the tertiary sector (trade, commerce and services), industry, mobility and neighbourhoods Measurable indicators help determine which systems or processes in a company can be identified and activated as flexibility. The following pages develop 'clusters of flexibility' by examining relevant indicators in four specific areas: the tertiary sector, industry, mobility and neighbourhoods. Clustering can help plant operators gain important insight into existing technical potential. Tertiary sector (trade, processes must be conducted Commercial facilities often meet the commerce and services) before flexibility can be identified technical requirements for coupling and utilised. Nevertheless, certain infrastructure (e.g. electricity, heating, Due to the heterogeneity among grid indicators make it possible to cooling). This enables conversion users in the tertiary sector (including assess the suitability of commercial systems to provide flexibility through trade, commerce and services), processes. These include the level cross-sector energy flows. it's difficult to generalise about the of inertia in plants (e.g. temperature flexibility of systems or processes. gradients of cooling systems), Industry Specific load characteristics, specific methods of production (e.g. installed technology and cumulative batch-based, workshop production) From an energy perspective, industri- annual energy vary considerably and the general ability to plan al production sites always consist of across branches, which means energy-consuming processes. components and systems of pro- that intensive analyses of internal duction (e.g. processing machines),
Best practice manual | Identifying flexibility options 20 production infrastructure (e.g. com- Mobility ed that the charging infrastructure pressed air treatment) and building or vehicles can be controlled as infrastructure (e.g. air conditioning). The electrification of public and needed and are connected to a Increasingly, decentralised systems private vehicle traffic offers many suitable system for energy manage- for energy conversion (renewable crucial opportunities to provide ment and optimisation. energy) and storage must also be electrical flexibility. There is already taken into account. The goal is to significant technical flexibility Neighbourhoods control or regulate the entire system potential in the form of charging of ‘industrial grid users’ in a (partially) capacities of up to 22 kW (in some By definition, measures for de- automatic and flexible manner – cases even higher) and relatively mand-side integration (DSI)7 in with support from market incentives small battery capacities of 50–100 households, residential buildings – in order to create economic added kWh. Bidirectional charging, which and neighbourhoods must maintain value. This is difficult, however, be- is often mentioned in this context, comfort, and residents shouldn't cause variation at the different layers does not seem technically or notice any limitations. Storage of existing automation pyramids economically attractive at present systems (thermal, electrical and (from enterprise resource planning and is rarely offered on the market. building mass) and modulable (ERP) through production planning Short- and medium-term flexibility energy generators (e.g. CHP unit or and control systems to the field potential is created primarily by heat pump) can be used to meet level) makes real system landscapes shifting the times at which (partially) this requirement. Because flexibility extremely heterogeneous. As a result, discharged vehicle batteries are re- conflicts with energy efficiency in relevant systems must be equipped charged. For this flexibility potential neighbourhoods, energy consump- with adequate electrical and com- to be usable in practice, however, tion must be shifted in ways that will munication technology. The creation it's necessary to define more or less optimise cost and comfort. Intel- of these new networks allows the plannable time windows within ligent building networking (smart ‘factory of the future’ to function as which charging can be shifted. building technology) is an effective an independent energy system. This makes it unlikely that ‘on- means to record and predict thermal the-road charging’ or ‘in-between load behaviour as well as the behav- Flexibility can be activated charging’ – such as at motorway iour of individual users. This makes it throughout the industrial land- service stations, at bus stops (along possible to assess neighbourhoods scape, not just in energy-intensive a regular bus route) or during a short and their possible contribution to processes and technologies like break in shifts – will be suitable to flexibility (e.g. schedules). If many container glass production, raw and provide flexibility. individual grid users are aggregated, cement grinding, chlor-alkali elec- compensation effects may occur, trolysis and raw material melting. In commercial fleets (and in bus and economic efficiency can be Although these processes typically transport), on the other hand, the increased through central and provide very large amounts of time intervals between vehicle de- optimally dimensioned equipment. energy for load management, they ployments are longer, which offers can often only be influenced as a better opportunities for flexible whole due to their considerable charging between clearly defined dependency on subprocesses. This shifts. This also applies to private means that they can cover only vehicles that are seldom or never a small portion of the necessary used outside of scheduled hours, demand profiles. When considering such as overnight or while standing the expected ‘multiplier’ effects of idle in the employer’s car park. The energy use, it's important to give aim is to increase the flexibility of particular weight to the many small vehicle charging while continuing to and medium-sized manufacturing satisfy all usage requirements – and companies that help maintain without restricting the mobility of Germany's role as a business vehicle users. centre. Because energy demand is generally low, there is significant Especially in the aggregate, flexibil- potential to aggregate and coor- ity that can be mobilised in this way dinate the partial amounts that is considerable and, ‘in principle’, require greater flexibility. can be achieved at low cost, provid- 7 emand-side integration is a term that encompasses demand-side management (i.e. external influence on load-side consumption) and demand-side response (i.e. D the consumer’s reaction to an external signal that is designed as an incentive). For the definition, see: Energietechnische Gesellschaft (ETG) im Verband der Elektro- technik, Elektronik, Informationstechnik e. V. (VDE) (Ed.): ‘Demand Side Integration – Lastverschiebungspotenziale in Deutschland’, Frankfurt am Main 2012.
21 Best practice manual | Identifying flexibility options Characteristics of flexibility clusters Tertiary sector (Energy-intensive) Mobility and Neighbourhood Cluster (trade, commerce industry transport sector solutions and services) No negative influ- Compliance with ence on production customer require- Guarantee of Prerequisites or manufacturing/ No adverse effect on ments/fulfilment of required transport for the provision fulfilment of cus- user comfort customer preferenc- capacity of flexibility tomer preferences, es/no influence on compliance with customer experience peak load limits Previous Generally flexible Generally none Generally none Generally none market purchase of electric- (charging stations (upstream power (upstream power participation ity, in certain cases supplied by power utilities) utilities) balancing market utilities) (Registered load Typical Approx. 3–8 MWh ���–���� MWh profile measurement - annual energy per household (RLM) beginning at consumption 100 MWh) CHP plant or PV Mainly non-control- system available as lable loads, con- Controllable load Controllable needed, low gener- System trollable or shiftable and generation units, charging stations, no ation by consumers, engineering loads or processes (temporarily) auton- higher-level control, non-controllable requirements available, emergency omous operation and benefits to loads, small storage power generators possible as needed the grid systems for heat and as needed electricity Available to Monitoring, Partially to widely Energy monitoring Energy monitoring some degree via control and available, but and management and management networked central information not designed for available available heating systems technology for flexibility and smart building flexibility technology Creation and Installation of operation of a Installation of smart Technical system-specific mobility control building technology measures smart meters and - centre for the and smart meters, required devices for intelligent coordinated system-specific control and management of controls networking energy flows Organisational measures Transparent tracking Integration of flexibility Transparent tracking - required of energy flows into the value chain of energy flows
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