RET_2015-01-02-03-04_Flipbook

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Demand response - Use and limits in a liberalized electricity market – Peter CLAES & Michaël VAN BOSSUYT GENERAL CONTEXT With the liberalization of the electricity market, the context of the electricity system in most EU member states changed from a regulated and centrally controlled and planned system to free competition between market parties, both incumbents and new entrants, also across borders. The increase in competition stemming from a liberalized market leads to increased market price volatility, but should also bring more efficiency to the system, by improving dispatching and lowering the reserve capacity margin significantly compared to a regulated system, which in its turn should lower the total cost of the electricity system. Moreover, the rapid increase of intermittent renewable generation capacity in the electricity system increases price volatility and thus requires more flexibility from all possible sources (flexible generation, load and storage). Flexibility in general but demand side flexibility in specific (as will be argued below) is a very interesting instrument for the electricity system to cope with the last few 100(s) of peak MWs of the load duration curve, which will only be solicited for a very limited number of hours (e.g. 383 MW for 10 hours in Belgium in 2014), and this at the most efficient cost for the system. These few hours of peak demand should not necessarily be covered by big central production units (which is usually the case in regulated systems), which would be idle for most of the time and thus probably not profitable, while also leading to an oversized generation park. More flexible solutions can solve the issue of the last MWs of the load duration curve at a lower system cost. Flexibility can take the following forms: • Flexible generation • Demand side response, and this in all market segments (e.g. residential, offices, services industry, distribution, industrial consumers, …) • Storage Revue E Tijdschrift – 131 ste jaargang/131 e année – n° 1-2-3-4-2015 (publication mars/publicatie maart 2017) 2
Demand response - Use and limits in a liberalized electricity market – Peter CLAES & Michaël VAN BOSSUYT In a competitive market, a permanent trade-off will take place between available flexibility and the need for investments in additional reliable, dispatchable generation and transmission capacity. These will only take place if the price signal strongly indicates imminent or increasing scarcity and the need for such reliable, dispatchable generation capacity. Until that point, the flexibility inherently available in the system will contribute to balance generation and load, to the extent to which the market design encourages participation of all available flexible resources in a cost effective way. The recent evolution of an increasing introduction of (often subsidized) intermittent renewable energy sources (e.g. wind and photovoltaic) has had a profound impact on the system. Indeed, this new generation sources, though large in installed capacity, are neither reliable nor fully flexible nor predictable in all timeframes, and as such does not help the adequacy issue addressed above. Furthermore, it aggravates the need for flexibility from all other market parties, leading to a higher total cost of the electricity system and its real-time operations. BENEFITS AND LIMITS Demand Side Flexibility or Demand Side Response (DSR) is an essential element in covering the last MWs of peak demand at the lowest possible system cost and needs to be further developed. For such development of demand side flexibility, the following elements are key: • Demand side response must always be on a voluntary basis and must always be fairly remunerated; if not, this would imply an enforced curtailment of load, which would destroy economic value and damage our reliability as an investment-worthy industrial region. Industrial consumers already contribute largely to grid stability (stable and predictable baseload consumption) and could in addition, depending on the specific nature of their activities, provide the lowhanging fruits for demand side response. • Moreover, demand side response, especially from industrial consumers, cannot be a structural solution to issues of system adequacy and capacity shortages, as the first objective of the industry is to produce goods. The potential of Demand Side Flexibility can, in some circumstances, be increased but only up to a certain critical point and always at a progressively accelerating cost. • Flexibility at system level is currently limited by the absence of smart meters allowing for residential consumers to participate on the market. • The development of demand side flexibility requires not only a fair remuneration, but also a stable regulatory framework. A special attention should for example be given to industrial self-generation plants, which can reduce the net offtake of the grids by increasing their production. These can be emergency generators, used for stopping processes in an orderly shutdown in case of an emergency, but can also be high efficiency (and thus less carbon-intensive) cogeneration units. In both cases they can be very useful tools for solving temporary adequacy issues. Revue E Tijdschrift – 131 ste jaargang/131 e année – n° 1-2-3-4-2015 (publication mars/publicatie maart 2017) 3
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ISSN 07700024 DRIEMAANDELIJKS - TRI
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Intitulé de l’article - Nom de l
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LA FLEXIBILITE DE LA DEMANDE: COMME
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MOYENS A METTRE EN ŒUVRE POUR FACI
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Moyens à mettre en œuvre pour fac
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De rol van flexibiliteit in onze en
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Page 41 and 42: The Roles of Engie with regard to t
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Page 45 and 46: Vers un nouvel équilibre énergét
Page 51 and 52: FLEXIBILITÉ DE LA DEMANDE Annabell
Page 53 and 54: Flexibilité de la demande - Annabe
Page 61 and 62: FLEXIBILITY AND DEMAND: A DISTRIBUT
Page 63 and 64: Flexibility and demand: a distribut
Page 71: DEMAND RESPONSE Use and limits in a
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Page 79 and 80: Demand Response: which place in the
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Page 83 and 84: Evolutie van vraagbeheer in de Elia
Page 97 and 98: The solution for electrical systems
Page 105 and 106: Calcul du champ électrique induit
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Grid voltage control with wind turb
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Grid voltage control with wind turb
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ONTWERP VAN EEN ROBUUSTE DATALOGGER
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Ontwerp van een robuuste datalogger
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