ROCOF AND ENHANCED FREQUENCY CONTROL CAPABILITY RESERVE MODELLING - ENERGY EXEMPLAR
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RoCoF and Enhanced Frequency Control Capability Reserve Modelling PLEXOS User Group Meeting, Valencia 12 June 2019 Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information.
Table of contents A Overview of Baringa 3 B Project background and PLEXOS modelling 6 C EFCC CBA analysis overview 20 D Key CBA results 23 Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 2
Overview of Baringa Partners Baringa Partners is a market-leading consulting Our Our company with a focus on the We bring Collaboration independence award-winning We all roll up challenges of tomorrow, deep industry runs through means we culture our sleeves to operating in the Utilities, Energy experience to everything provide attracts the deliver & Resources, Financial Services, client projects we do impartial brightest advice people Telco and Consumer Retail sectors. We help clients using our deep Baringa was founded in 2000 and now has: industry insight to: Run more effective businesses 600 Employees 60 Partners 6 Offices worldwide Launch new businesses and UK, Germany, reach new markets Ireland, Understand and navigate Australia, UAE industry change. and USA We have worked with energy Our reputation is hard won and we’re determined to companies & utilities across: keep it growing. Strategy and regulation Energy market analysis Customer Values Analysis Commercial Strategies Operating model design Operational excellence Back office transformation Technical and Digital architecture and Solutions Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 3
Baringa Overview – locations and client coverage We maintain regularly updated models for Europe and Australia as well as a wide range of geographies Baringa Office Locations UK | Ireland | Germany | N America | UAE | Australia Baringa Client Project Locations Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 4
Table of contents A Overview of Baringa 3 B Project background and PLEXOS modelling 6 C EFCC CBA analysis overview 20 D Key CBA results 23 Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 5
Project background As Great Britain’s (GB) electricity sector becomes increasingly decarbonised, traditional thermal power stations are closing and a rising number of inverter based technologies, such as wind and solar photovoltaic (PV), are connecting to the network. This creates several operability challenges, one of which is reducing system inertia Thermal power stations have traditionally provided system inertia, which acts as a natural aid to maintaining system frequency, so removing them from the system will impact how frequency is managed. System frequency is a measure of the balance between electrical power generated and consumed. In GB, the electricity system frequency is nominally 50Hz and the National Electricity Transmission System Operator (NETSO) balances generation and demand in real-time Lower system inertia means that after a frequency disturbance, there is a faster rate of change of frequency (RoCoF). This increases the unpredictability and volatility of system frequency movement across the network immediately after an event. Consequently, the speed, volume and degree of coordination of frequency response must increase to keep frequency within acceptable parameters The Enhanced Frequency Control Capability (EFCC) project by National Grid has been designed to find a resolution to this electricity system challenge. The aim of the EFCC project was to develop and demonstrate an innovative new monitoring and control system (MCS) which obtains accurate frequency data at a regional level, calculates the required rate and volume of fast response and then enables the initiation of this required response within 0.5 seconds of a detected system frequency event The project was a collaboration between NGESO, GE Renewable Energy (formally known as Alstom Psymetrix), the University of Manchester, the University of Strathclyde, BELECTRIC, Flexitricity, Centrica/EPH, Ørsted (formally known as DONG Energy) and Siemens Gamesa Renewable Energy. All the partners, including NGESO, were responsible for particular work package(s) which denoted their areas of expertise and knowledge Baringa was asked to develop a cost and benefit analysis to assess the potential benefits of dispatching faster frequency response through EFCC to the industry and consumers Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 6
Technical background: Faster RoCoF Inertia provide a natural response to a frequency event reducing RoCoF (rate of change of frequency) and the response required to re-address system frequency Under current conditions – high inertia and RoCoF of 0.125 Hz/s – a frequency event (1) is managed by a combination of the inertia provided by synchronous generation in the short-term (i.e. within the first 2 seconds (2)) by which time traditional response provides (typically thermal) have been deployed to manage the frequency event (3). This is show by the pink line and pink shaded area below. Faster RoCoF falls is shown by the grey line (4). The impact of a frequency event, for example the loss of a power station, is now faster and larger than before. As system inertia is now lower, this cannot provide the same natural response in the sub-2 seconds timeframe. Traditional response providers (5) cannot respond fast enough to arrest the frequency drop, resulting in a frequency drop below the current limits (6). With traditional response times, faster RoCoF is therefore infeasible, and/or would require a greater volume of response overall to counteract the faster RoCoF. 1 Frequency event – loss of generation Target Nominal System Frequency 50.0 Hz 2 RoCoF=0.125Hz/s: Frequency Frequency drop of 0.25Hz in 2 seconds 49.75 Hz 4 RoCoF=0.25Hz/s: Frequency drop of 0.5Hz in 2 seconds Statutory limit 49.5 Hz MW 6 Infeasible additional 5 output Traditional primary Secondary response response Response Traditional primary Secondary response 3 response Time t t+2s t+4s t+10s 7 Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information.
Technical background: EFCC impact With EFCC, the faster and more targeted response can help to address the faster RoCoF, reducing the overall volume of response required to arrest the frequency event. With EFCC, a RoCoF of 0.250 Hz/s (7) can be managed more effectively by using faster response (8), able to arrest the frequency drop in the 2 second gap between the frequency event and traditional primary response (9). The fast EFCC response will arrest the frequency deviation quickly, hopefully preventing the frequency falling outside the limits. This faster response should therefore reduce the volume of response required to bring frequency back up to target levels (10 and 11). Frequency event – loss of generation Target Nominal System Frequency 50.0 Hz 11 Frequency 49.75 Hz 7 RoCoF=0.25Hz/s 10 Statutory limit 49.5 Hz Infeasible Traditional primary Secondary response MW response Response additional output 8 Traditional EFCC response response 9 Secondary response Time t t+2s t+4s t+10s Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 8
Technical background: EFCC benefit summary The benefit of EFCC can be seen in the chart The high level benefits of EFCC are shown diagrammatically below: A to B – Faster RoCoF can now be accommodated, reducing the re-dispatch costs (from either reducing the largest infeed loss and/or from re-dispatching to get more synchronous generation on the system). C to D – Faster acting EFCC response is able to more quickly arrest the frequency drop reducing the volume of response required to bring frequency back to target levels. Frequency event – loss of generation Target Nominal System Frequency 50.0 Hz Frequency RoCoF=0.125Hz/s 49.75 Hz A RoCoF=0.25Hz/s B Statutory limit 49.5 Hz Infeasible MW Response additional output C Traditional response D Traditional primary Secondary response EFCC + traditional response response Time t t+2s t+4s t+10s Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 9
Managing RoCoF limit 2 * RoCoF limit * (System inertia – inertia of Largest Infeed Loss) >= Frequency * Largest Infeed Loss The ROCOF limit can be managed by decreasing largest infeed or increasing system inertia. Decreasing the largest infeed is a less costly option and is what is done more frequently Decreasing levels of inertia projected going forward in the National Grid SOF 2018 (system operability framework) Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 10
PLEXOS modelling approaches and features used Modelling RoCoF Gen and RoCoF IC constraints Decision variables heavily deployed! (Over 50): Decision Variable objects are useful when you need to define a constraint on an aspect of the simulation that is not definable with the default constraint coefficients RoCoF modelling: Tracking interconnector and generation RoCoF constraints. This can be important in the cases where an interconnector can be the largest infeed however losing a generator of comparable size might have a bigger impact on the frequency due to inertia – RoCoF Gen constraint: 2 * RoCoF limit * (System inertia – inertia of Largest Infeed Loss) >= Frequency * Gen Risk – RoCoF IC constraint: 2 * RoCoF limit * System inertia >= Frequency * IC Risk Gen risk and IC risk are defined as reserve objects with the set of generator and line contingencies defined, respectively. In the case of generator contingencies, the largest generation unit can set the gen risk and in the case of line risk, the largest flow (both import and export direction) can set the IC risk. Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 11
PLEXOS modelling approaches and features used Modelling IC risk 2 * RoCoF limit * System inertia >= Frequency * IC Risk Modelling IC risk: Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 12
PLEXOS modelling approaches and features used Modelling Gen Risk and Largest Infeed Loss (LIFL) 2 * RoCoF limit * (System inertia – inertia of Largest Infeed Loss) >= Frequency * Gen Risk Modelling Gen Risk: Binary DVs created to track largest infeed and remove its inertia in the RoCoF constraint Further DVs created to model groupings of generators considered as a single loss Example: Saltend 1 constraints (similar constraints for SE2 and SE3): – DV(SE1)-DV(dummy SE-WMR-HG)-Unitsgen(SE1)>=-1 – DV(SE1)-Unitsgen(SE1)
PLEXOS modelling approaches and features used Modelling inertia 2 * RoCoF limit * (System inertia – inertia of Largest Infeed Loss) >= Frequency * Gen Risk H values (inertia coefficients) for generators Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 14
RoCoF and inertia modelling The RoCoF and inertia modelling optimises largest infeed re-dispatch actions to manage the system within the required RoCoF limit RoCoF assumptions The fast response from EFCC is a system enabler, allowing the system to operate at a faster RoCoF. The main EFCC benefit in the CBA is derived from enabling this RoCoF limit change, and the resulting benefit from reduced system actions. The RoCoF limits used in the modeling are shown in the table below. Without EFCC, we With EFCC, we assume assume the system can the system can manage a manage a 0.2Hz/s RoCoF 1Hz/s RoCoF RoCoF limit (Hz/s) 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Counterfactual 0.125 0.125 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 Factual-EFCC case 0.125 0.125 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Interconnector assumptions Generator groupings Interconnectors are commonly the largest infeed on the system, and The RoCoF modelling takes into account the impact of generator therefore constraining down flows on interconnectors is a key tool for transmission connection groupings and the impact this has on the managing RoCoF. largest infeed (i.e. the extent to which a credible loss on the transmission system could result in a RoCoF event exceeding the To simulate this, we first model an unconstrained market to calculate RoCoF limit). the cross-border flows for each hour (i.e. based on economic dispatch). Then, we use these unconstrained market results to set the The Baringa model takes into account the local RoCoF groups interconnector flows for the constrained market run (i.e. applying the identified by National Grid in ‘The Statement of the Constraint Cost RoCoF constraints). Target Modelling Methodology’ (Immingham, Saltend, Seabank and South Humber Bank). We limit the re-dispatch of interconnectors for RoCoF management to 50 % of interconnector capacity. We also assume a fixed cost of interconnector re-dispatch of £25/MWh. Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 15
Response modelling – response volumes The response modelling sets the demand for each response service using regression analysis of the relationship between demand, inertia, infeed and static response. The CBA takes into account the impact of EFCC in two areas. First, EFCC is an enabler for the transition to RoCoF of 1.0Hz/s from 2021. Second, EFCC will compete with other existing response providers for traditional response timeframes – Primary, Secondary and High response Primary, Secondary, High The EFCC response modelling considers the volume of response available from the EFCC technologies, the response timeframes for the different technologies and the impact this has on response holding across different response timeframes In the counterfactual, without EFCC, we assume that National Grid procures traditional frequency services: • Primary (Max delivery by 10s after a frequency event) • Secondary (Max delivery by 30s after a frequency event) • High (Max delivery by 10s after a frequency event) To model the EFCC response we also assume a response holding requirement at 0.5s (defined as EFCC in this section), and modelled in addition to the primary and secondary requirements: • EFCC (Max delivery by 0.5s after a frequency event) Regression analysis: To calculate response holding volumes we derived a relationships between demand, inertia, largest loss and static volume This regression analysis provided coefficients for each variable which we have used in our model to calculate the required response holding requirements for each hour In-feed/ex- Response Demand Inertia feed loss Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 16
PLEXOS modelling approaches and features used Modelling reserve using custom constraints Reserve modelling: We have modelled reserve requirement through custom constraints rather than using the reserve object as the reserve formula for traditional response took the following form which is not possible to model using the reserve object: PR= A – B x demand – C x inertia +D x infeed loss – E x static response – F x EFCC provision – G x EFR provision Definition of reserve risk in PLEXOS is as below: Example modelling of primary response using custom constraints: Created a decision variable with an objective function value so that it is minimised to avoid over-provision Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 17
PLEXOS modelling approaches and features used Modelling LIFL, demand and intercept components of the reserve in the custom constraint Modelling inertia component of the reserve: LIFL coefficient Demand coefficient Intercept defined as a variable with a coefficient of 1 Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 18
Table of contents A Overview of Baringa 3 B Project background and PLEXOS modelling 6 C EFCC CBA analysis overview 20 D Key CBA results 23 Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 19
Overview of Baringa’s CBA approach The CBA includes a counterfactual model run and a ‘test case’ to show the impact of a change in RoCoF limits and the introduction of EFCC 1 Replicate FES Steady State and Consumers Power in Baringa’s in-house dispatch model 2019- 2028 Traditional MFR and FFR Counterfactual EFCC impact “test case” Sunk Costs providers of Primary, 2 5 Secondary Run Baringa model with and High Re-run the analysis allowing existing RoCoF constraint and response faster RoCoF traditional response providers 8 3 6 Costs of installing Calculate cost of system Calculate change in system and maintaining EFCC actions required to meet the actions required to meet (for NG and industry) current RoCoF constraint faster RoCoF ∆ in total 4 system 7 costs = Subtracted from Calculate the response Calculate response holding market benefit to reveal holding requirements with requirements total net effect impact EFCC capabilities of EFCC Move to 1 Hz/s in 2021 Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 20
Roll-out profile – explanatory slide Example the response and EFCC assumptions used in the study Example roll-out – to explain the assumptions slides Total capacity taken from the FES for all technologies De-load: maximum volume the generator can reduce output to offer response service (no change over time) Counterfactual De-load Response Response: Proportion of de-load that counts Low response 45% 100% towards response High response 0% 100% provision at each timeframe (i.e. 10 and 30s) EFCC De-load Response EFCC boost (low) 0% 1.5% We assume an EFCC boost for onshore and EFCC (low) 45% 10% offshore wind only, with a small response EFCC (high) 0% 10% at 0.5s The de-load and potential response approach is the same Response capability is the MW of total The EFCC response capability is the MW for traditional response and EFCC. For EFCC we show the capacity assumed to be able to offer of total capacity that can offer EFCC assumed response from each technology at 0.5s traditional response (primary, capability (i.e. some response at 0.5s) secondary and high) The EFCC assumptions are combined with the The actual EFCC response will be a counterfactual/traditional response assumptions in the The actual response provided by each function of this assumption and the EFCC case (i.e. EFCC is additional to traditional response) technology will be a function of the assumed EFCC response (shown in the response capability, and the assumed blue table) service response (shown in the pink table) Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 21
Table of contents A Overview of Baringa 3 B Project background and PLEXOS modelling 6 C EFCC CBA analysis overview 20 D Key CBA results 23 Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 22
RoCoF duration curves RoCoF duration curves provide a clear indication of the potential benefits of moving to higher RoCoF using EFCC 2025 RoCoF duration curve Unconstrained market run RoCoF duration curve RoCoF limit is set to 0.3 Hz/s in the constrained case Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 23
RoCoF duration curves RoCoF duration curves provide a clear indication of the potential benefits of moving to higher RoCoF using EFCC 2025 RoCoF duration curve Modelling a RoCOF limit of 0.2 Hz/s in the counterfactual increases the number of hours where the RoCoF limit is binding significantly, therefore results in increased benefit from moving to higher RoCoF using EFCC Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 24
RoCoF duration curves RoCoF duration curves provide a clear indication of the potential benefits of moving to higher RoCoF using EFCC 2025 RoCoF duration curve Modelling a RoCoF limit of 0.125 Hz/s (as is the case today) means the RoCoF limit is binding almost throughout the year Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 25
Inertia distribution – Consumer Power These charts show how system inertia changes over the modelling horizon in Consumer Power. 2021 In the Consumer Power scenario, the significant volume of renewables results in a larger difference in inertia distribution between the unconstrained run and the Low RoCoF run (i.e. the system needs more re-dispatch actions to meet the RoCoF constraint) The modelling shows this as a greater move in the inertia distribution curve between the unconstrained run and Low RoCoF run 2028 Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 26
High level benefits comparison – Consumer Power For the Consumer Power scenario with significant renewable capacity, the CBA shows a material benefit to deploying EFCC and enabling faster RoCoF Consumer Power – breakdown of benefits Key messages Total change in generation costs The change in generation costs reflects the total system cost change with a move to faster RoCoF. This include GB and connecting market generation costs, plus an assumed cost of interconnector re- dispatch (as shown below) Social cost of carbon Our modelled generation costs takes into account the cost of carbon for each generator. Here we add in the social cost of carbon, from the Treasury green book to account for wider benefits to society This only reflects the GB portion of carbon savings (i.e. does not take into account the change in carbon in connecting markets) Renewable curtailment costs At a faster RoCoF, the system can accommodate a greater volume of renewables. This reduces the cost or renewables curtailment, represented by a benefit in the CBA. Total ‘European’ We calculate this using the change in wind and solar GB generation multiplied by an assumed balancing bid generation costs IC re- Total generation cost (£50/MWh onshore wind, £100/MWh offshore costs (GB, NL, SEM, dispatch generation wind & solar) FR, BE, NO, DK) costs cost Link: https://www.nationalgrideso.com/document/126486/download Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 27
Contacts at Baringa Partners: Adrian Palmer Baringa Partners LLP Ozlem Akgul Baringa Partners LLP 3rd Floor, Dominican Court 3rd Floor, Dominican Court Director 17 Hatfields Senior Consultant 17 Hatfields London SE1 8DJ London SE1 8DJ United Kingdom United Kingdom adrian.palmer@baringa.com ozlem.akgul@baringa.com mobile +44 7904 279 887 www.baringa.com mobile +44 7800 864 508 www.baringa.com Baringa Partners is an independent business and technology consultancy. We help businesses run more effectively, reach new markets and navigate industry shifts. We use our industry insights, pragmatism and original thought to help each client transform their business. Collaboration runs through everything we do. Collaboration is the essence of our strategy and culture. It means the brightest and the best enjoy working here. Baringa. Brighter Together. Copyright © Baringa Partners LLP 2019. All rights reserved. This document is subject to contract and contains confidential and proprietary information. 28
This report has been prepared for Baringa's client (“Client”) and has been designed to meet the agreed requirements of Client as contained in the relevant contract between Baringa and Client. It is released to Client subject to the terms of such contract and is not to be disclosed in whole or in part to third parties, altered or modified without Baringa's prior written consent. This report is not intended for general advertising, sales media, public circulation, quotation or publication except as agreed under the terms of such contract. Information provided by others (including Client) and used in the preparation of this report is believed to be reliable but has not been verified and no warranty is given by Baringa as to the accuracy of such information unless contained in such contract. Public information and industry and statistical data are from sources Baringa deems to be reliable but Baringa makes no representation as to the accuracy or completeness of such information which has been used without further verification. This report should not be regarded as suitable to be used or relied on by any party other than Client. Any party other than Client who obtains access to this report or a copy, and chooses to rely on this report (or any part of it) will do so at its own risk. To the fullest extent permitted by law, Baringa accepts no responsibility or liability in respect of this report to any other person or organisation. Copyright © Baringa Partners LLP 2018. All rights reserved.
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