CUSTOMER ORGANIZATIONCUSTOMER ORGANIZATION

Prof. Dr. Carlos ÁlvarezInstituto de Ingeniería EnergéticaUniversidad Politécnica de Valencia

ELECTRIC DEMAND SIDE OPERATION DSO MADRID FORUM

RED ELÉCTRICA DE ESPAÑAMadrid, October 19, 2005

CONTENTSCONTENTS

1.1. INTRODUCTIONINTRODUCTION

2.2. PROCESS SUITABILITYPROCESS SUITABILITY

3.3. DEMAND ORGANIZATIONDEMAND ORGANIZATION

4.4. CONCLUSIONSCONCLUSIONS

CUSTOMERSCUSTOMERS

DEMAND RESPONSE WILL COME OUT FROM THE FLEXIBILITY DEMAND RESPONSE WILL COME OUT FROM THE FLEXIBILITY ASSOCIATED TO THE END USER PROCESSES THE CAPABILITY ASSOCIATED TO THE END USER PROCESSES THE CAPABILITY OF THE CUSTOMER TO ASSIGN ENERGY USES TO PRICESOF THE CUSTOMER TO ASSIGN ENERGY USES TO PRICES

THIS PROCESSES AS WELL AS THE EQUIPMENT TO SUPPLY THE THIS PROCESSES AS WELL AS THE EQUIPMENT TO SUPPLY THE REQUIRED SERVICE LEVELS HAS TO BE INVESTIGATED IN ORDER TO REQUIRED SERVICE LEVELS HAS TO BE INVESTIGATED IN ORDER TO DETERMINE THE AVAILABLE DEMAND RESOURCESDETERMINE THE AVAILABLE DEMAND RESOURCES

DEMAND RESPONSE CAN COME FROM CUSTOMER BY TWO DEMAND RESPONSE CAN COME FROM CUSTOMER BY TWO MECHANISMS:MECHANISMS:•• IDENTIFICATION OF IDENTIFICATION OF ENERGY REQUIREMENTS ENERGY REQUIREMENTS AND ITS AND ITS ASSOCIATED ASSOCIATED BENEFITS BENEFITS (BIDS) (BIDS) •• IDENTIFICATION OF THE OPPORTUNITIES TO IDENTIFICATION OF THE OPPORTUNITIES TO GIVE UP OR GIVE UP OR DELAY OF SOME ENERGY CONSUMPTION DELAY OF SOME ENERGY CONSUMPTION AND ITS AND ITS ASSOCIATED COST (OFFERS). ASSOCIATED COST (OFFERS).

OPPORTUNITY TO MAKE PROFITS FROM THE CUSTOMER OPPORTUNITY TO MAKE PROFITS FROM THE CUSTOMER FLEXIBILITYFLEXIBILITY

CUSTOMER RESPONSE IN DR PROGRAMS– TWO TYPES OF DEMAND STUDIES:

– TOTAL DEMAND OF A CUSTOMER:» BILATERAL CONTRACT» ELECTRICITY MARKETS

– CHANGE IN THE DEMAND– CUSTOMER TASK: TO ARRANGE ITS DEMAND INTO DEMAND

PACKAGES TO BE OFFERED OR BID

MWh

1 24

Changes in theCustomer demand

Customer buys energyAt low prices

Day-ahead demand(global demand)

Time (h)

↓

CUSTOMERSCUSTOMERS

• PARAMETERS OF A DEMAND PACKAGE (DP):– TRIGGER PRICE: F (CUSTOMER, END USE)– SIZE AND SHAPE OF THE DP BLOCK: (CUSTOMER, LOAD)– THE NOTICE REQUIRED FOR THE CHANGE IN THE DEMAND– ADDITIONAL LIMITATIONS: NUMBER OF PARTICIPATIONS IN A DAY, MONTH OR

YEAR

■ Storage capability■ Non storage loads

Residential

■ Storage capability■ Non storage loads

Commercial

■ Process independent■ Sequential■ Process interlocked■ Storage capability

Industrial

Controllable loads

Capability to reduce demandType of customer

CUSTOMERSCUSTOMERS

METHODOLOGY FOR DP CREATIONMETHODOLOGY FOR DP CREATION: :

COMPREHENSIVE ANALYSIS OF THE CUSTOMER ENDCOMPREHENSIVE ANALYSIS OF THE CUSTOMER END--USES AND USES AND PROCESSESPROCESSES

•• SEVERAL FACTORS ARE RELEVANT TO ASSES LOAD FLEXIBILITYSEVERAL FACTORS ARE RELEVANT TO ASSES LOAD FLEXIBILITYA.A. FINAL SERVICE SUPPLIED BY THE ELECTRIC LOADFINAL SERVICE SUPPLIED BY THE ELECTRIC LOAD

•• HEAT, COOL, ILLUMINATION, PRODUCTIONHEAT, COOL, ILLUMINATION, PRODUCTION•• DUAL FUEL SYSTEMSDUAL FUEL SYSTEMS

B.B. STORAGE CAPACITY: STORAGE CAPACITY: PARTIAL, TOTALPARTIAL, TOTALELECTRICITYELECTRICITYTHERMAL ENERGYTHERMAL ENERGYPRODUCTPRODUCTHYDROGEN, ETCHYDROGEN, ETC

C.C. RATE OF LOAD SWITCHING: RATE OF LOAD SWITCHING: NATURAL ON/OFF LOAD SWITCHINGNATURAL ON/OFF LOAD SWITCHING

D.D. LOAD DISPATCH AVAILABILITYLOAD DISPATCH AVAILABILITY

CUSTOMERSCUSTOMERS

EXAMPLE OF CUSTOMER LOAD ORGANIZATION– End uses identification:

• By analyzing the total load curves in different periods• By non intrusive load monitoring (electronic, HAVC and lighting loads)• By laboratory experiences: offices and classrooms

Glo

bal p

ower

dem

and

(kW

)

CUSTOMERS: EXAMPLECUSTOMERS: EXAMPLE

CLASSIFICATION OF COMMERCIAL AND RESIDENTIAL LOADS ACCORDING TO THEIR SUITABILITY FOR A FLEXIBLE CONTROL

• H: High; M: medium; L: low

HoursMMHFreezers

Min.MMLFridges HoursMHHWater Heater

HoursLMHIrrigation and swimming pumps

HoursHoursHours

HMM

HMH

MHH

HVAC:■ Direct■ Partial storage■ Full storage

HoursHMHDimmable lighting

Bid duration

DP (real time)

DP (short term)

DP (medium term)

Load

CUSTOMERSCUSTOMERS

CUSTOMER LOAD ANALYSIS :WINTER PEAK

Not considered4MWDistributed Gen.

Emergency lighting, freezers chambers, etc.

10%Other demands

No response available10%?Teaching and Labs equipments

No response available15%Electronic loads

300kW external150kW dimmable

28%Lighting

Individual AC, split units and compact 3p units

2%Air conditioning

HP + Conventional electric heaters (5%)

35%Space heating

ConsiderationsDemand End use

CUSTOMERS: EXAMPLECUSTOMERS: EXAMPLE

3Other loadsL4

1Internal LightingL3b

3Internal LightingL3a

3External LightingL2

0.5Space conditioningL1

Price (€/kWh)DescriptionDemand Package

COST OF THE ENERGY BOUGHT IN DAILY MARKET: 7,075 €/DAY

DEMAND AND ENERGY PRICES

0

1000

2000

3000

4000

5000

6000

7000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23Hora

KW

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

cent

€/K

Wh

L4L3bL3aL2L1PMIPMD

GENERATION OF DEMAND BIDS

• UPV BIDS FOR THE DAY-AHEAD ENERGY MARKET– WINTER PEAK (JANUARY 29, 2002. BID FROM 12 TO 13H)

Pric

e (€

/kW

h)

L4+L3a+L2a

L2bL1

7.3

0.5

Demand (MW)

3

L3b

5.45.255.15

0.8

1

CUSTOMERS: EXAMPLECUSTOMERS: EXAMPLE

DEMAND-SIDE OFFERS

• SIMULATION RESULTS: COST-DEMAND CURVE – SUMMER PEAK, JULY 9, 2002. HOUR: 13-14H

Pric

e (€

/kW

h)

CUSTOMERS: EXAMPLECUSTOMERS: EXAMPLE

EVOLUTION OF FLEXIBLE LOADS

January

0

500

1000

1500

2000

2500

3000

0:00 2:30 5:00 7:30 10:00 12:30 15:00 17:30 20:00 22:30

Time

Pow

er d

eman

d (k

W)

L1 L2 L3b L3a L4

January

0

500

1000

1500

2000

2500

3000

0:00 2:30 5:00 7:30 10:00 12:30 15:00 17:30 20:00 22:30

Time

Red

uctio

ns (k

W)

L1a (0.15€/kWh) L1b (0.25 €/kWh)L1c (0.7 €/kWh) L2b (0.3 €/kWh)

33P>0.25

750.25>P>0.15

0.15>P

participationsPrice(P)€/KWh

Balancing prices for January

14.00

16.00

18.00

20.00

22.00

24.00

26.00

28.00

30.00

32.00

34.00

36.00

38.00

40.00

1.00 3.00 5.00 7.00 9.00 11.00 13.00 15.00 17.00 19.00 21.00 23.00

HOURS

cent

€/K

Wh

347891011151718212223293031

ESTIMATED INCOME FOR JANUARY 8TH 2003: 5,874.52 €

ESTIMATED LOAD CHANMCES IN BALANCING MARKETS (JANUARY 2003)

CUSTOMER CUSTOMER PARTICIPATION: PARTICIPATION:

CONCLUSIONSCONCLUSIONS

BENEFITS OF RETAILBENEFITS OF RETAIL--LOAD PARTICIPATION: LOAD PARTICIPATION: REDUCTION OF PRICE VOLATILITY (DUE TO REDUCTION OF PRICE VOLATILITY (DUE TO DEMAND ELASTICITY).DEMAND ELASTICITY).THE CONSUMER MANAGE ITS PROFITS AND COSTS:THE CONSUMER MANAGE ITS PROFITS AND COSTS:

DEMAND IS FLEXIBLEDEMAND IS FLEXIBLEPRICE OPPORTUNITIESPRICE OPPORTUNITIES

DEMAND DEMAND ≠≠ GENERATIONGENERATIONRECOVERY, LOAD CHANGES,.. RECOVERY, LOAD CHANGES,.. →→ AADVANTAGES AND DVANTAGES AND DRAWBACKSDRAWBACKS

CONCLUSIONS

OPERATORS SHOULD FACILITATE THE PARTICIPATION OPERATORS SHOULD FACILITATE THE PARTICIPATION OF THE DEMAND: OF THE DEMAND:

ENERGY MARKETSENERGY MARKETSANCILLARY SERVICES AND NETWORK CONSTRAINTSANCILLARY SERVICES AND NETWORK CONSTRAINTS

IT IS NECESSARY TO PERFORM EXTENSIVE RESEARCH IT IS NECESSARY TO PERFORM EXTENSIVE RESEARCH TO FIND THE DEMAND RESPONSE RESOURCES TO FIND THE DEMAND RESPONSE RESOURCES

IDENTIFICATION OF CUSTOMER SEGMENTSIDENTIFICATION OF CUSTOMER SEGMENTSLOAD RESPONSE MODELSLOAD RESPONSE MODELSPRICE AND COST EVALUATION TOOLS TO PERFORM PRICE AND COST EVALUATION TOOLS TO PERFORM OFFERS AND BIDSOFFERS AND BIDS

CONCLUSIONS

Áreas de actividad

ÁreaRenovables

ÁreaTérmica

ÁreaNuclear

ÁreaEléctrica

Instituto de Ingeniería Energética

Prospectiva yevaluación

Aplicacionesno energéticas