Electricity Grid 2.0

1. Electricity Grid 2.0 Fergus Wheatley B.Sc (eng).

2. Electricity is difficult to store • Generation and Consumption must always be matched. • Generators and Transmission lines built to deal with the PEAK load rather than the AVERAGE load • This means that we are paying for expensive generators and transmission lines that are only rarely used. • Difference in Ireland between the night valley and 6 O'clock peak load is about 2000 MW, • Or 5 modern Gas fired power stations.

3. Electricity Grid 1.0 • 100 year old concept. • Always match supply to demand • Minimum effort in getting demand to move • Majority of users using fixed tariffs • Old & inefficient plant is still required to meet peaks in demand. This cost is passed to consumers in the form of higher bills. • Huge swings in wholesale electricity rates not seen by customers

6. Electricity Grid 1.1 (1999) • New entrants to the wholesale market. • Energia, Aertricity. Bord Gais et al (check dates) • Bought Electricity through bilateral agreements and sold on to customers. • Some analysis of consumer load is done, to settle on an average price for customer. • Nobody offering a “pass-through” tariff.

7. Introduction to SEM (Grid 1.2) • Single Electricity Market • All generators bid, Market operator looks at all prices and anticipated demand, publishes a dispatch file (Indicative Schedule on half hour basis, with prices) • Customers CAN use this to plan their electricity usage. However because nearly everybody uses a fixed tariff, nobody really bothers to plan.

8. Operating the Grid • Eirgrid uses the D-1 file and asks power stations to turn on & off, dispatching the least expensive stations based on bid price. • If demand is greater than forecast or if another power station goes off-line, then Eirgrid, dispatches the next least expensive station capable of meeting demand. • The cost of this power station is now the new pool price. All remaining generators feeding the grid get paid this new pool price.

9. Wind Power • Wind farm operators normally bid in at very low rates (€ 2.00 per MWhr) • This means that wind will always be chosen to run, being the cheapest generators. • However they will be paid the pool price. (the MWhr cost of the most expensive generator running). • Wind is referred to as a “PRICE TAKER”, and can significantly effect wholesale prices by blocking out conventional power stations.

10. Declare Available MWatts. Generated. Exported to Grid. (i.e. After House load subtracted). Highlight line, accept or reject to Grid instructions.

12. Electricity Grid 2.0 (2008/2009) • The SEM will lead to Grid 2.0 • We’re not there yet. • Big wholesalers; ESB, Energia, Bord Gais still mostly charging negotiated fixed rates. • Usage is analysed and wholesaler offers a fixed rate based on demand to date. • Some incentive to move demand away from expensive periods.

13. Pass through Pricing • Pass through pricing offers a SERIOUS incentive to pull demand away from high price events. • New market entrant VALU has just started offering pass-through pricing. • Commercial Resistance from existing players, because wholesale margins will be effected.

14. Matching Demand to Supply? • 40% of electricity generated in 11 years time will be from renewable sources. To reach this figure there needs to be about 6,000 MW of wind connected to the grid. • 9% of electricity generated today is from renewable sources from 850MW of wind + about 120MW of hydro. • Wind is impossible to dispatch, it’s either there or its not. Supply is not flexible, so demand must be. Otherwise there will be significant curtailment of wind.

15. System Records

16. Wind already having an effect • Wind is already curtailing expensive generation and reducing wholesale prices • Next graph, reducing prices by about 20% in off-peak periods,

18. Bio Fuels Directive • EU rules state that 10% of transport fuel must be renewable by 2020. • Ireland under John Gormley and Eamon Ryan are aiming for about 2-3% veg oil and the balance in charging Electric Vehicle batteries from Wind. • 10% of cars to be electric by 2020. • Increased demand on the grid. Without Demand Response more price swings.

19. Synergy Module • Technology to assist Demand Response • Auto-Generation. (Wrongly called embedded generation). • Helps increase the portion of variable renewable sources of electricity. • Helps Grid stability • Reduces the cost of spinning reserve • Reduces the peak expensive power.

20. iLon Smart Server

21. Demand Response • Energy Reduction • Autorun Diesel Generators • Heating and Cooling Thermostat Control • Energy Time Shift • Domestic Heating • EV & PHEV • Refrigeration • Ice Bank Air Conditioning • Water Pumping • Smart Domestic Appliances • Energy Demand Stimulation (Replace Fossil Fuels) • Swimming Pool Heating (via Heat Pump) • H2 production

23. Screen shot of Synergy Setup

24. Summary • Moving Electricity load helps; • Reduce CO2 by curtailing in inefficient plants required for peak load. • Saves serious money on utility bills. • Helps with Ireland Inc. fuel security. • Helps grid stability. • Helps increase wind / variable renewable portion of electricity used.