The power market reform in Denmark and EU

Transkript

1 The power market reform in Denmark and EU How the electricity market needs to evolve Pindstrup, International Senior Engineer, Energinet.

2 Agenda The challenges of the current market design Integrating and utilising renewable energy Security of supply and Regional Cooperation How to ensure survival of reliable generation 2

3 A burning platform for the electricity market Average price in 1 [RMB/MWh] Windpower share of demand 60% 50% 40% 30% 20% 10% 0% 3

4 Renewables replaces conventional generation Wind generation as share of demand in 1, % 180% 160% 140% 120% 100% 80% 60% 40% 20% 0%

5 Integration of renewables on a large scale RES is often regionally Distributed A market will help to dispatch efficiently across borders and large distances Europe just about have one shared market platform Lesson for China: A market can ensure economic efficient dispatch Help integrate renewables Reduce curtailment Give value for long interconnectors Connect regions 5

6 Utilising Renewable Energy The primary objective when having invested in renewables should be at avoiding curtailment by: 1. Ensuring high flexibility from thermal power plants Thermal plants can operate from 15% to 100% load if given the right incentive to develop technically/retrofitting and educate operational personnel 2. Create market signals which show the actual value of power at a give time Ensuring a market with price zones that reflect the electricity system constraints will also allow for different wholesale electricity prices based on generation portfolio. Remember: A high price is an expression of a need. 3. Integrate renewables in large transmission systems The larger and more diverse the market, the better it will be able to integrate RES. Transmission lines between market zones will gain revenue from price differences 6

7 Security of Supply and power market A Gordian knot? The market design must at the same time: Ensure efficiency and low consumer prices Security of Supply Integrate renewables into the energy system Prevent uncoordinated capacity markets Are we ready for a fact based discussion on acceptable risk of disruption of service? Are we ready to share responsibility of Security of Supply regionally? 7

8 Joint Declaration for Regional Cooperation We are convinced that an intensified regional cooperation is an important step towards further EU market integration, that it will increase energy security, reduce energy prices and costs and promote further integration of renewable energy. We will not restrict cross-border trade of electricity including in times of high prices reflecting market scarcity and we will follow EU-regulations on cross-border trade also with respect to ensuring secure system operation. We will develop demand side response and consider the potential of demand options from other sectors, such as heating and transport into the electricity system; Signed by ministers from: Austria, Belgium, Czech Republic, Denmark, France, Germany, Luxembourg, The Nederlands, Norway, Poland, Sweden, Switzerland. The Baake Statement 8

9 How to ensure survival of reliable generation What happens when the energy only market breaks down? How to recover the missing money? Price Change in price setting with RES Demand Missing money with too low price cap Price [ /MWh] Missing money Before RES With RES Price cap Old price New price MW Hours 9

10 Capacity markets or something else? Should we pay for what we need from a marginal point of view, or should we subsidise all reliable generation capacity? On short to medium term Denmark will use strategic reserves to ensure adequacy Long Term: Consumers to choose their own SoS level? 10

11 Create markets for Critical capabilities/ functionality How to assess settlement of ancillary services To assess the possibilities of settling ancillary services in a market, broad assessment parameters are set up 1 Level of need in power system 2 Possibility of market 3 Value above threshold The power system needs the product as an independently delivered service If No: The service should not be delivered Does characteristic of the service and the possible suppliers ensure a foundation of a market? If No: Consider alternative settlement method Value of service should be higher than the cost of coordinating the market If No: The service is delivered for free Bonus info: Inertia Reactive power Short circuit power Are all sold on monthly tender in Denmark today Precondition for settlement Precondition for market Market model 2.0: 11

12 Thank you very much for your attention! Pindstrup International Senior Engineer Energinet.dk

13 Backup 13

14 Regional Cooperation and role of ENTSO-E 1. Regional cooperation 2. System adequacy 3. Transparency and stakeholder interaction 4. TSO-DSO interface. Consumer in the centre Stronger role for ENTSO-E on regional TSO cooperation, in operations, markets and planning. ENTSO-E will ensure RSCIs pan-eu coverage and interoperability. Regulators and policymakers must establish regional governance like the Pentalateral Energy Forum. Formal role for ENTSO-E s pan-eu System Adequacy Assessment methodology as a benchmark for European reviews of capacity mechanisms and support schemes. ENTSO-E will set up a High Level Advisory Board, assessing in a legally non-binding manner how ENTSO-E works and fulfils its mandates. European Network Code Stakeholder Committees to integrate and develop stakeholder input. ENTSO-E amending network codes/guidelines in cooperation with consumers and the industry. Need for a code or other legislation on distributed flexibility: Co-creation between ENTSO-E and DSOs, as well as relevant stakeholders. 14

15 Betaling for funktionalitet Blok-ø-drift Ved hændelser i elsystemet, hvor generatorerne i henhold til tilslutningsbetingelserne må koble fra nettet, skal anlægget kunne overgå til blok-ø-drift dvs. anlægget skal kunne drives isoleret fra det kollektive elforsyningsnet med anlæggets egetforbrug som eneste last. Formålet er at kunne få anlægget hurtigt tilbage i normal drift efter en driftsforstyrrelse. Anlæggets evne til at køre i ø-drift skal dokumenteres efter revision. Ø-driftsprøven skal gennemføres fra % kedellast i mindst 30 minutter. Anvendelse: Sjælden (sidst brugt i 1999 og 2003). Ekstra frekvensregulering Kørende anlæg, der modtager ordren Ekstra frekvensregulering skal efter bedste evne levere maksimal mulig frekvensregulering med udgangspunkt i det planlagte driftspunkt ved at tilkoble mulige primærreguleringsreserver. Anvendelse: Stort set aldrig Kritisk effekt-/frekvensregulering Automatisk frekvensstyret regulering, hvor idriftværende anlæg inden for dets tekniske rammer skal levere effektregulering proportionalt med frekvensafvigelsen (statik skal være indstillet på 6%). Anvendelse: Stort set aldrig Skærpet drift Anvendes ved risiko for usikker drift. Ved udmelding af skærpet drift kører anlægget videre, men personalet skal være indstillet på, at der hurtigt kan indløbe nye ordrer, og arbejde på anlægget skal indstilles og må ikke foregå i perioden med skærpet drift. Anvendelse: Ofte. Forceret op-/nedkørsel Anlæg skal i kritiske driftssituationer bidrage med effektregulering efter Energinet.dk s anvisninger betinget af hvert anlægs P/Q-diagram. Anvendelse: Sjælden. Min/maks-krav til gradienter Krav om gradientbegrænsere gælder vindmøller, som kan have et ønske om ramme timeskift så godt som muligt ved varierende spotpriser. Gradient-effektbegrænser bruges til at begrænse den maksimale hastighed, som den aktive effekt kan ændres med ved ændringer i vindhastigheden eller ved ændrede setpunkter for aktiv effekt. Gradient-effektbegrænser bruges typisk af systemdriftsmæssige årsager, så ændringerne i aktiv effekt ikke giver stabilitetsmæssige problemer i det kollektive elforsyningsnet. Anvendelse: Gældende krav. Revisonsplanlægning mv. Foruden ovenstående krav, skal anlæg > 25 MW indlevere ønsker til reivisonsplan samt levere en række data til systemdriftsformål. Disse krav er ikke i første omgang medtaget på listen. Nødstart Skal indkøbes dog er rammerne ikke helt bestemt endnu. 15