Balancing service exchange in Northern Europe Unit Commitment & Reserve procurement

Transcription

1 1 Balancing service exchange in Northern Europe Unit Commitment & Reserve procurement Stefan Jaehnert Market design and modelling workshop, Schiphol, , Stefan Jaehnert, Unit commitment & Reserve procurement

2 2 Outline Introduction Integrated regulating power market model Day-ahead market Regulating reserve procurement System balancing Studied Cases & Results Conclusion , Stefan Jaehnert, Unit commitment & Reserve procurement

3 3 Modelling objective Investigation of: Possible external regulating reserve procurement System wide regulating reserve activation (real-time system balancing) Transmission reservation for reserve procurement and system balancing Regulating reserve and reserve activation pricing Estimation of socio-economic benefit of integrating multinational regulating power markets Analysis of different regulating power market integration steps , Stefan Jaehnert, Unit commitment & Reserve procurement

4 4 Overview Integrated regulating power market based on a common day-ahead market Covers Denmark, Finland, Norway, Sweden, Germany, Netherlands (Northern Europe) Fundamental model Perfect market assumption Hydro system inflow / wind production scenarios: , Stefan Jaehnert, Unit commitment & Reserve procurement

5 5 Structure Input: - Power plant data - Transmission system data - Demand, Ex-&Import curves - Hydro inflow, wind speeds Reserve requirements: - Control area - Balancing area - System wide System imbalance: - Demand forecast error - Wind forecast error Model: Day-ahead market - Generation disptach - Water values - Area prices Reserve procurement - Generation redispatch - Water values - Area prices System balancing Output: - Total production cost - Area prices - Optimal generation dispatch - Transmission dispatch - Reserve procurement cost - Availability of regulating reserves - System balancing cost - Regulating resource exchange EMPS IRiE EMPS EFI s Multi-area Power-market Simulator IRiE Integrated Regulating power market in Europe , Stefan Jaehnert, Unit commitment & Reserve procurement

6 6 Day-ahead market Input: - Power plant data - Transmission system data - Demand, Ex-&Import curves - Hydro inflow, wind speeds Reserve requirements: - Control area - Balancing area - System wide System imbalance: - Demand forecast error - Wind forecast error Model: Day-ahead market - Generation disptach - Water values - Area prices Reserve procurement - Generation redispatch - Water values - Area prices System balancing Output: - Total production cost - Area prices - Optimal generation dispatch - Transmission dispatch - Reserve procurement cost - Availability of regulating reserves - System balancing cost - Regulating resource exchange EMPS IRiE , Stefan Jaehnert, Unit commitment & Reserve procurement

7 7 EMPS Common day-ahead market Mid- and long-term optimisation of system operation on weekly basis (containing several periods) Key points: Transmission system (NTCs, linear losses) Nordic hydro system (reservoirs, power plants and water course) Thermal scheduled production & dispatchable production (power plants with marginal production- & start up costs) Wind power generation Consumption (temperature dependent) Results: Optimal unit commitment and generation dispatch Area prices, Water values , Stefan Jaehnert, Unit commitment & Reserve procurement

8 8 Reserve procurement Input: - Power plant data - Transmission system data - Demand, Ex-&Import curves - Hydro inflow, wind speeds Reserve requirements: - Control area - Balancing area - System wide System imbalance: - Demand forecast error - Wind forecast error Model: Day-ahead market - Generation disptach - Water values - Area prices Reserve procurement - Generation redispatch - Water values - Area prices System balancing Output: - Total production cost - Area prices - Optimal generation dispatch - Transmission dispatch - Reserve procurement cost - Availability of regulating reserves - System balancing cost - Regulating resource exchange EMPS IRiE , Stefan Jaehnert, Unit commitment & Reserve procurement

9 9 IRiE - Reserve procurement Objective: least cost redispatch of generation and transmission capacity in order to fulfil given reserve requirements Procurement of up- & downward regulating reserves Reserve procurement cost includes: Production decrease on infra marginal units / Production increase on ultra marginal units Efficiency loss for thermal units at partial load Start up- / shut down costs of thermal units Consideration of transmission capacity availability for reserve exchange , Stefan Jaehnert, Unit commitment & Reserve procurement

10 1 Reserve procurement strategy Before procurement: After procurement: Upward regulating reserves: Downward regulating reserves: , Stefan Jaehnert, Unit commitment & Reserve procurement

11 11 Reserve procurement cost fixed cost of units: before procurement: Ctot after procurement: Ctot P1 P1 P2 P2 Prel Prel % 25% 5% 75% 1% % 25% 5% 75% 1% + start up- / shut down costs , Stefan Jaehnert, Unit commitment & Reserve procurement

12 12 Reserve requirements Requirements for secondary reserves (UCTE) and Frequency restoration reserves (Nordel) Aggregation of control areas into balancing areas (Nordel, DE, NL) Control Area Balancing Area Total system Up Down Up Down Up Down NO1 NO NO3 SWE FI DK VET 64-4 EON RWE EnBW Netherland , Stefan Jaehnert, Unit commitment & Reserve procurement

13 13 Regulating reserve exchange NTC1,2max trans1,2 = -trans2,1 Available transmission capacity for the export of upward regulating reserves from 1 to 2 Available transmission capacity for the export of downward regulating reserves from 1 to 2 NTC2,1max , Stefan Jaehnert, Unit commitment & Reserve procurement

14 14 System balancing Input: - Power plant data - Transmission system data - Demand, Ex-&Import curves - Hydro inflow, wind speeds Reserve requirements: - Control area - Balancing area - System wide System imbalance: - Demand forecast error - Wind forecast error Model: Day-ahead market - Generation disptach - Water values - Area prices Reserve procurement - Generation redispatch - Water values - Area prices System balancing Output: - Total production cost - Area prices - Optimal generation dispatch - Transmission dispatch - Reserve procurement cost - Availability of regulating reserves - System balancing cost - Regulating resource exchange EMPS IRiE , Stefan Jaehnert, Unit commitment & Reserve procurement

15 15 IRiE - System balancing Objective: least cost system wide generation and transmission redispatch to settle real-time system imbalances in each PTU Input: imbalance records (quarter hourly) No time dependencies (ramping, start up / shut down of units) Definition of non-spinning in addition to spinning regulating reserves => all installed generation capacity available for system balancing , Stefan Jaehnert, Unit commitment & Reserve procurement

16 16 Regulating resource pricing Based on marginal production costs (MC) and water values (WV) Hydro power plants: WV +/- 1% Thermal power plants: Spinning reserves: MC +/- 4% Non-spinning reserves: MC +/-4% + relative start up cost Enforcement utilization of hydro regulating reserves instead of thermal (as seen in reality) Rationing at 1 EUR/MWh Shutdown at EUR/MWh , Stefan Jaehnert, Unit commitment & Reserve procurement

17 17 Case studies Integration of regulating power markets Studied years: Average year hydro inflow = 193 TWh (Wet year hydro inflow = 244 TWh) (Dry year hydro inflow = 146 TWh) Exchange of regulating resources: Case: No exchange between control areas in Germany ( I ) Exchange only in balancing areas ( II ) System wide exchange ( III V ) Regulating reserve procurement: Procurement only in own control area ( I III ) Procurement in whole balancing area ( IV ) Reserve procurement system wide ( V ) , Stefan Jaehnert, Unit commitment & Reserve procurement

18 18 Regulating reserve procurement GWh Redispatch Rationing Shutdown Case I-III Case IV Case V Total required reserves per year in DE & NL: Up: GWh Down: 2542 GWh Procurement of 1155 GWh of upward regulating reserves via HVDC connections in case V Procurement costs: I-III: 183 M IV: 127 M V: 49 M , Stefan Jaehnert, Unit commitment & Reserve procurement

19 19 Reserve activation 8 6 Upward activation Downward activation Resource exchange Reduction rationing / shutdown to nearly zero with regulating resource exchange GWh 4 2 Case I Case II Case III-V Imbalance settlement costs: I: 217 M II: 122 M III-V: 69M - 66M , Stefan Jaehnert, Unit commitment & Reserve procurement

20 2 Conclusion Upward as important as downward regulation in a thermal power system => procurement of regulating reserves for both directions necessary Decrease redispatch during reserve procurement by 4% => ample regulating reserves available in Nordic system 4% of regulating reserves procured from Nordic area (mostly upward regulating reserves) Reduction reserve activation by 45% (imbalance netting) Gross exchange of balancing energy approx. 2.5 TWh 4% of activated regulating reserves Significant reduction of reserve procurement and reserve activation costs Thank you for your attention , Stefan Jaehnert, Unit commitment & Reserve procurement

21 21 Appendix , Stefan Jaehnert, Unit commitment & Reserve procurement

22 22 Future work Investigation of reserve pricing: Efficiency impacts on marginal costs Imperfect markets Modelling with historic data? Analysis of possible future scenarios Increased wind generation Increased transmission capacities Outcomes for market participants: Inclusion market rules Participation day-ahead vs. balancing market , Stefan Jaehnert, Unit commitment & Reserve procurement

23 23 Scheduled production Average weekly schedule production lignite nuclear Average hourly schedule production lignite nuclear [GW] 16 [GW] week week Includes: Nuclear Lignite KWK / District Heating Biomass Hydro (Germany) Photovoltaics , Stefan Jaehnert, Unit commitment & Reserve procurement

24 24 Dispatchable production Availability dispatchable production hard coal gas oil Marginal cost curve [GW] EUR/MWh day 4 Germany Netherlands GW Includes: Hard Coal Gas Oil => Generation capacity traded at day-ahead market , Stefan Jaehnert, Unit commitment & Reserve procurement

25 25 Area prices Percentiles for 4 different inflow scenarios: Southern Norway Amprion Significant dependency of price on inflow in hydro area High price variation during week in thermal area , Stefan Jaehnert, Unit commitment & Reserve procurement

26 26 Transmission dispatch Includes: NorNed HVDC cable Denmark west Germany AC interconnector Baltic HVDC cable Kontek HVDC cable , Stefan Jaehnert, Unit commitment & Reserve procurement

27 27 Thermal generation dispatch Dispatchable thermal generation units in Amprion area: Start up costs => operation of units at part load during low load Regulating reserves provided by units, but not always sufficient , Stefan Jaehnert, Unit commitment & Reserve procurement

28 28 Results - Southern Norway , Stefan Jaehnert, Unit commitment & Reserve procurement

29 29 Results - Amprion , Stefan Jaehnert, Unit commitment & Reserve procurement

30 3 Regulating Resource Exchange Duration curve: Continuous exchange: , Stefan Jaehnert, Unit commitment & Reserve procurement

31 31 Case studies - results Case 17 w exch total 17 w exch bal area Cost (MEUR) Rationing (GWh) Shutdown (GWh) Redispatch (GWh) Cost (MEUR) Up regulation (GWh) Down regulation (GWh) Net exchange (GWh) Gross exchange (GWh) Rationing (GWh) 151,58 8,49 57,11 36,4 66,98 326,3-3348,3 44, ,23, ,9 8,49 78,33 473,5 65,75 326,4-3348,2 442,1 2114,56, w exch 494,58 43,4 162, ,6 64,81 326,5-3348,3 441,8 2112,52,122 Shutdown (GWh) 17 n exch 494,58 43,4 162, ,6 11,3 3992,2-4114,8,41, ng exch 494,58 43,4 162, ,6 191, ,1-5985,4,28 21,11 19 w exch total 19 w exch bal area 389,73 35,96 15, ,8 78, ,5-3412,2-736,2 1962,6,7 412,44 35,96 22, ,4 77,8 3287,6-3412,1-73,7 1956,9 19 w exch 1618,33 155,187 51, ,1 77, ,8-3412,2-729,9 1956,5 19 n exch 1618,33 155,187 51, ,1 118,38 395,6-454,9,41 19 ng exch 1618,33 155,187 51, ,1 219,79 583,6-5934,7,786 13, , Stefan Jaehnert, Unit commitment & Reserve procurement

32 32 Balancing prices quarter hours with exchange GLOMMA OSTLAND SOROST HALLINGDAL TELEMARK SORLAND VESTSYD VESTMIDT NORGEMIDT HELGELAND TROMS FINNMARK SVER-ON1 SVER-ON2 SVER-NN1 SVER-NN2 SVER-MIDT SVER-SYD FINLAND DANM-OST DANM-VEST DANM-OV 1 2 quarter hours without exchange NEDERLAND difference area - balancing price EUR/MWh difference area - balancing price EUR/MWh , Stefan Jaehnert, Unit commitment & Reserve procurement

33 33 Reserve activation 1 GLOMMA 2 OSTLAND 1 SOROST 1 HALLINGDAL 1 TELEMARK SORLAND 2 VESTSYD 2 VESTMIDT 1 NORGEMIDT 1 HELGELAND TROMS 5 FINNMARK 2 SVER-ON1 2 SVER-ON2 1 SVER-NN SVER-NN2 2 SVER-MIDT 2 SVER-SYD 2 FINLAND 2 x 1-13 DANM-OST x 1-12 DANM-VEST x 1-12 DANM-OV NEDERLAND , Stefan Jaehnert, Unit commitment & Reserve procurement

34 34 Transmission change GLOMMA ->OSTLAND 4 OSTLAND ->SOROST 2 OSTLAND ->HALLINGDAL OSTLAND ->VESTSYD OSTLAND ->NORGEMIDT OSTLAND ->SVER-MIDT SOROST ->TELEMARK SOROST ->SORLAND SOROST ->VESTSYD HALLINGDAL ->VESTMIDT TELEMARK ->SORLAND TELEMARK ->VESTSYD SORLAND ->VESTSYD SORLAND ->DANM-VEST SORLAND ->NEDERLAND VESTSYD ->VESTMIDT NORGEMIDT ->HELGELANDNORGEMIDT ->SVER-NN2 HELGELAND ->TROMS HELGELAND ->SVER-NN2 TROMS ->FINNMARK TROMS ->SVER-ON FINNMARK ->FINLAND SVER-ON1 ->SVER-ON2 SVER-ON2 ->SVER-NN1 SVER-ON2 ->FINLAND SVER-NN1 1 x 14 ->SVER-NN2 SVER-NN2 ->SVER-MIDT SVER-MIDT ->SVER-SYD SVER-MIDT ->FINLAND SVER-MIDT ->DANM-VEST SVER-SYD ->DANM-OST SVER-SYD -> DANM-OST ->DANM-VEST DANM-OST -> DANM-VEST ->DANM-OV DANM-VEST -> > > > > 5 2 ->NEDERLAND > > > > 6 5 ->NEDERLAND , Stefan Jaehnert, Unit commitment & Reserve procurement

35 35 Demand & Production Data Germany total 5 Hertz transpower Amprion EnBW Demand 616 TWh 84 TWh 57 TWh 66 TWh 74 TWh 23 TWh 16 TWh Wind 25 GW 8.8 GW 5.6 GW 2.9 GW.5 GW 3.7 GW.5 GW Photovoltaic 4.4 TWh 6.9% 8.8% 7.7% 34.4% 16.2% 25.9% Biomass 25.6 TWh 24.6% 16.9% 12.2% 11.6% 2% 14.5% Hydro 2.5 TWh 15% % 5% 4% 15% 25% KWK 76.7 TWh 12.9% 6.9% 7.4% 14.2% 51% 7.6% Nuclear 141 TWh % 23.9% 6.6% 17.1% 18.8% 33.5% Lignite 138 TWh 43.7% % 1.9% % 54.4% % Export 48.4 TWh 11.5TWh 33% 33% 33% Import 38.6 TWh 33% 33% 33% , Stefan Jaehnert, Unit commitment & Reserve procurement

36 36 Regulating reserve procurement GWh Procurement Redispatch Upward regulation Downward regulation Net Exchange Gross Exchange I II III IV V I II III IV V wet dry 3% reduction of procurement redispact 4% reduction of activated reserves 1/3 of activated reserves are exchanged between Nordic & Cont. Europe Net exchange depending on inflow characteristics , Stefan Jaehnert, Unit commitment & Reserve procurement

37 37 Reserve procurement & System balancing Costs M Reserve Procurement System balancing I II III IV V I II III IV V wet dry Significant reduction of costs High reserve procurement cost in dry years due to rationing Costs depend highly on reserve pricing approach , Stefan Jaehnert, Unit commitment & Reserve procurement