WP2 – Technical and System constraints for DER Integration

1. WP2 – Technical and System constraints for DER Integration Other contributors Speaker: Yves Marie Saint-Drenan (y.saint-drenan@iset.uni-kassel.de ) Raúl Rodríguez (rsergio@labein.es) Benoît Bletterie Benoit.Bletterie@arsenal.ac.at Boštjan Blažič (bostjan.blazic@fe.uni-lj.si)

2. CONTENTS • WP2 Phase I • Objective of the Work Package • Interconnection requirements of DER • DER integration and Active Network Management • Demand Response and Demand Side Management • DER energy market integration

3. OBJECTIVE • MONITOR AND ASSESS THE TECHNICAL BREAKTHROUGHS IN MEETING THE R&D NEEDS IN: • DER INTERCONNECTION • OPTIMAL MANAGEMENT OF NETWORKS • INTEGRATION IN ENERGY MARKETS • THIS IS CARRIED OUT BY MEANS OF FOUR TASKS: • INTERCONNECTION REQUIREMENTS AND INTERFACES • TECHNIQUES FOR DER INTEGRATION AND ACTIVE NETWORKS MANAGEMENT • DEMAND RESPONSE AND DEMAND SIDE MANAGEMENT • DER ENERGY MARKET INTEGRATION • PARTICIPANTS IN WP2: • Univ. of LJUBLJANA, Black Sea Regional Energy Centre (BSREC), Lithuanian Energy Institute (LEI), EGU, MAKK, ENVIROS, KAPE, SIEMENS AG, DONG ENERGY, IBERDROLA, VERBUND, ARSENAL, LABEIN and ISET

4. WP2 – PHASE I • RESULTS: • FOUR REPORTS (1 FOR EACH TASK) + 1 GENERAL DELIVERABLE HAVE BEEN PRESENTED • THE GENERAL DELIVERABLE SUMMARISES THE RESULTS OF THE 4 TASK REPORTS: • Interconnection Requirements for DER in Europe (ARSENAL) • Techniques for DER integration and Active Network Management (UNIV. LJUBLJANA) • Demand Response and Demand Side Management (LABEIN) • DER Energy Market Integration (ISET) • THESE REPORTS WILL BE AVAILABLE AT THE PROJECT WEB SITE AS SOON AS THEY ARE APPROVED BY THE COMISSION: www.solid-der.org

5. WP2.1 – INTERCONNECTION REQUIREMENTS FOR DER • PRESENTATION: • The scope of the work is to review and analyse the electricity network interconnection requirements in Europe • Focus is set on the technical aspects to interconnect DER to the power network • The final objective is to identify the major problems related to interconnection requirements and to raise awareness to stakeholders involved in the development of standardisation work

6. WP2.1 – INTERCONNECTION REQUIREMENTS FOR DER • METHODOLOGY: • National Reports were filled by the participants of the project, especially those belonging to “New Member States” (NMS) giving information about each country: Bulgaria, Czech Republic, Hungary, Lithuania, Poland, Romania, Slovakia and Slovenia • Previous European projects have been analysed to extract information about other EU countries: • Projects: DGFACTS, DISPOWER and ELEP • Countries: Austria, Belgium, France, Germany, Italy, Norway, Spain, UK, USA

7. WP2.1 – INTERCONNECTION REQUIREMENTS FOR DER • CONCLUSIONS: • The situation in Europe can be mainly characterised by: • Absence of a European interconnection standard for DER • Complexity in relation to the responsibilities for the development of interconnection requirements (laws, decrees, national standards, grid codes…) • Great variety of documents (terms addressed, technical content…) • Inadequate documents: information is not always transparent or easily accessible • Other observations: • Some issues are not addressed in all documents (anti-islanding, DC current injection…) • Some documents reflect lack of experience with DER, e.g. inverter based DER • Few documents provide explanation and assessment examples • Significant interpretation margin is left for some of the issues • There is a need for European Standards, USA experience and the pre-normative work being done in the Network of Excellence DERlab can be positive

8. WP2.1 – INTERCONNECTION REQUIREMENTS FOR DER • RECOMMENDATIONS: • Critical technical issues should be further investigated through pre-normative work • Small generators should be released from a long and expensive assessment procedure. Availability of certified equipment could reduce costs and the interconnection procedure • Aspects to be considered for the European interconnection standard: • It should be comprehensive • Its scope and requirements should be limited to interconnection issues • Regulatory aspects should be avoided (treated separately) • Regulatory adjustments are necessary and should help technical and organisational measures

9. WP2.2 – DER INTEGRATION AND ACTIVE NETWORKS MANAGEMENT • PRESENTATION: • The power system structure began to change mainly with the: • Introduction of the electrical energy market • Increase of the social environmental concern • Development and availability of new technologies • These resulted in the advent of Distributed Generation (DG), which may seriously influence network operation • The active network management concept might allow an efficient integration of a large DG share by means of a change in the distribution network structure and control

10. WP2.2 – DER INTEGRATION AND ACTIVE NETWORKS MANAGEMENT • METHODOLOGY: • The report consists of two parts: • Technical impact of DG on networks • Active Distribution Networks • Technical impact of DG on networks includes: • Overview of those possible impacts • Experiences of countries with DG integration: inputs were based on questionnaires filled by partners, who answered to two main groups of questions: Assessment of the DG penetration level and of the available monitoring of units and Identification of existing and potential problems caused by DG • The active network management is divided into two main sections: • General concepts of active distribution networks: system architecture, distribution network control, real-time estimation tools, etc are described • Active distribution network concepts in RTD projects: active distribution network concepts proposed in different research projects are analysed

11. WP2.2 – DER INTEGRATION AND ACTIVE NETWORKS MANAGEMENT • CONCLUSIONS: • Technical impact of DG on networks: • Impact of DG on the protection scheme and unintentional islanding: they can endanger the safety of people and equipment • Network voltage profile: voltage levels may vary on some feeders and even go beyond defined limits • Intermittence of RES, especially wind power: it makes difficult to balance energy production and consumption, it diminish system stability • Power quality and network operation problems already occur due to DG integration in some EU countries. Network operators are forced to limit DG penetration. The mitigation of these problems would permit a higher penetration. • Active network management: • The main technical challenge is related to the control of a large number of DER • Substantial investments will be needed in distribution networks • The introduction of distribution system automation will be gradual • An active network will have the following functionalities: • It can be divided into local control areas (connected or autonomous operation) • It must enable voltage and frequency control by means of controllable power sources, loads and energy storage and by means of power electronics, communications (ICT)…

12. WP2.2 – DER INTEGRATION AND ACTIVE NETWORKS MANAGEMENT • RECOMMENDATIONS: • Technical impact of DG on networks: • Modification in protection settings, equipment and/or schemes • Anti-islanding protection: effective solutions are needed • Control over voltage profile is necessary • Monitoring andforecasting techniques are needed for the mitigation of the intermittency of some renewable energy sources (to achieve system stability) • Estimation of DG penetration limits: it should be determined for area how much DG can be connected without causing disturbances in the grid • Active network management: • The main characteristics of the control system should be the following: • Real-time monitoring and prediction tools for consumption, production and electricity prices • All types of generation, load and storage devices should be controllable and contribute to network voltage and frequency control: • DG should provide and fault ride through capabilities • Storage devices should maintain energy balance during emergency • Power electronic will operate standalone and as part of controllable devices • ICT (Information and Communication Technologies) are an important part

13. WP2.3 – DEMAND RESPONSE AND DEMAND SIDE MANAGEMENT • PRESENTATION: • The Definition of Demand Response (DR) and Demand Side Management (DSM) is unclear and it changes from country to country • CIGRE has adopted the Demand Side Integration (DSI) term to include all the initiatives trying to influence the electricity consumption • The following initiatives have been considered under these terms: • Indirect initiatives that encourage consumption efficiency increase and demand reduction, e.g., financing of energy efficient lighting, devices… • Initiatives based on sending price signals to customers. Electricity price must be different at different times of the day • Indirect load control initiatives that force or encourage customers to reduce their consumption during certain periods, e.g., interruptibility contracts. Customers must execute the reduction themselves • Direct load control programs where DSO, TSO or programme operators disconnect part of the customer’s load. Direct communication is needed. • Initiatives or market structures that allow the participation of the customers offering load reductions in exchange for certain price 1/03/2005 Tues. Effect of interruptibility contracts (Source: REE)

14. WP2.3 – DEMAND RESPONSE AND DEMAND SIDE MANAGEMENT • METHODOLOGY: • Different issues are covered by WP2.3 report • General issues: based on the existing literature • Technical requirements: focused mainly on smart meters, the management system and communications. Based on existing literature • RTD European project analysis: seventeen past and ongoing projects have been selected, described and, in some cases, analysed • EU-15 and non-EU country experiences: DSI experiences in several countries have been analysed, included USA, UK and Australia which are the most advanced in this field. • Potential for DSI initiatives in some “New Member States” of the EU-27: Bulgaria, Czech Republic, Hungary, Lithuania, Poland, Romania and Slovenia

15. WP2.3 – DEMAND RESPONSE AND DEMAND SIDE MANAGEMENT • CONCLUSIONS: • Up to now not many EU projects have addressed specifically DSI issues • The USA is the country where DSI measures have been more widely deployed: their power system is over-stressed in some areas. UK and Northern countries in Europe (N, DK, F) are starting to catch up • Main reasons to launch DSI initiatives: • Encourage energy efficiency and demand reduction to reduce environmental impact of energy consumption • Alleviate local grid constraints, which may improve grid reliability levels • Defer investments associated to grid reinforcement • Improve grid balance mechanisms • There are still a lot of barriers for DSI implementation, among others: Reluctance of customers to modify their electricity consumption habits; Lack of information; Restrictive requirements to participate in markets or initiatives; Immature technology; lack of profitability due to high initial investments; electricity price structure in the country (retail prices); lack of DSI services… Generation-Demand Unbalance in Spain Source: REE

16. WP2.3 – DEMAND RESPONSE AND DEMAND SIDE MANAGEMENT • RECOMMENDATIONS: • Enhance the elasticity of demand with incentives to customers (public and/or private support is important) and raising their awareness • Aggregation of small customers for a bigger impact in market and system • Technology improvement and availability: metering (smart meters), information and communication technologies (ICT), internet based solutions… • Price based DSI options implementation: electricity tariffs should reflect the marginal cost of electricity and should be available for customers • DR services providers should be promoted • More information for participants • DSI potential assessment in NMS suggested, among others, the following recommendations: • At the present time safe operation margins exist in most of the countries • Industry and households are most promising sectors • DSI would bring environmental and economical benefits due to fuel dependence • Good quality of supply in most of the areas but poor quality in some few • This might be the right time to start thinking about DSI

17. WP2.4 – DER ENERGY MARKET INTEGRATION • PRESENTATION: • The purpose of this task is to analyse the contribution of public Research and Development to the DER industry • The “European Paradox” (Green paper on innovation by the EC, 1995): it was found that European scientists were producing world-class science but this was not reflected in European economic performances • According to this report “one of Europe’s weaknesses lies in its inferiority in terms of transforming the results of technological research and skills into innovations and competitive advantages” • In contrast to other fields, in the electricity sector the regulatory framework in which an innovation is developed is determinant for its future market introduction • RTD can impact the industry by several means: • The creation of new products and/or services • The improvement of existing products • The increase of knowledge • The production of strategic knowledge

18. WP2.4 – DER ENERGY MARKET INTEGRATION • METHODOLOGY: • The experts of the consortium have selected 59 projects according to their content for being representative of national and EU activities • The commercial introduction of these projects has been evaluated and a picture of the current situation of RTD activities with regard to market introduction has been made • The observed trends have been analysed and barriers have been identified • Best-practice examples have been identified • Recommendations for further RTD activities have been presented

19. WP2.4 – DER ENERGY MARKET INTEGRATION • CONCLUSIONS: • The “European Paradox” is confirmed: 40% of the considered RTD projects have not considered the future exploitation of results. • Technological objectives hinder exploitation: 21% of projects did not consider any exploitation only because they stuck to technological issues • Barriers to the market introduction • Lack of regulatory visibility • Need to improve the DER technology • The following facilitating factors have been identified: • Raising knowledge of end users • Increase of the electricity price • Possible markets in the present and near future

20. WP2.4 – DER ENERGY MARKET INTEGRATION • RECOMMENDATIONS: • Some recommendations for future RTD work: • More focus on the commercial aspect of projects is necessary • It is important to perform market analyses before the choice of technology • The beneficial social effects should be considered • New technologies should be tested • The status of patens should be systematically checked • The regulatory visibility should be increased and more political commitment, clear messages… • Dedicated investment mechanisms for DER would be helpful • Potential electricity quality and safety problems should be anticipated • The increase of electricity prices should be foreseen, new alternatives should be prepared for consumers (self-generation using DER, new types of contracts… • RTD activities to improve DER technologies are necessary (efficiency, reliability… More adapted to the targeted end-users)

21. THANK YOU FOR YOUR ATTENTION ANY OTHER COMMENTS?

22. QUESTIONS TO THE AUDIENCE (to foster discussion) • GENERAL: • What do you think about the four tasks that have been mentioned in the presentation? Which is the most interesting for you? Do you think that any of these could be used in your country and achieve benefits for the system? now or in the future? • Which are the main problems in your electrical system from your point of view? • Do you think that DER could help in this context? • TASK 2.1: • Do you (or other people involved) think that the situation regarding interconnection requirements (and procedure) for DER is satisfactory in your country?, If not, why? • Is there a plan to develop new requirements for the interconnection of DER to t the network? If yes, which initiative? • Are you (or the people involved in the development of interconnection requirements for DER) aware of the work being done at international level? Would you like to receive material about this and/or be involved in these developments?

23. QUESTIONS TO THE AUDIENCE (to foster discussion) cont. • TASK 2.3: • Do you think that DSI actions could be applicable in your country? why and when?