task 3: frequency control frequency control and … · energy sector program – phase 2 project...

CS-01.d Consulting services for analysis of the energy storage systems Freq. control and ancillary services training report Final version

European Union / Instrument for Pre-Accession Assistance

Energy Sector Program – Phase 2

Project

IPA 2012

Consulting services for analysis of the energy storage systems

TASK 3: Frequency control

FREQUENCY CONTROL AND ANCILLARY SERVICES TRAINING

REPORT

Final Version

November 2018

This project is co-financed by the European

Union and the Republic of Turkey.


This project is co-financed by the European Union and the Republic of Turkey

Team composition: Claire MUNET, Xavier ÉPIARD – EDF

Copyright of this report belongs to the Ministry of Energy and Natural Resources. Therefore you should not, without

prior written consent, refer to or use this document for any other purpose, disclose or refer to them in any prospectus

or other document, or make them available or communicate them to any other party, other than the parties allowed

in3 advance. No other party is entitled to rely on this document for any purpose whatsoever and thus no liability to

any other party who is shown or gains access to this document is accepted. The content of this publication is the

sole responsibility of the consultant and can in no way be taken to reflect the views of European Union or MENR.

Consulting services for analysis of the energy storage systems

FREQUENCY CONTROL AND ANCILLARY SERVICES TRAINING

REPORT

Final version

November 2018


Contents

1. EXECUTIVE SUMMARY ........................................................................................................................ 5

1.1. GLOBAL OBJECTIVES OF THE TASK AND THE TRAINING ...................................................................... 5

1.2. AGENDA OF THE TRAINING .............................................................................................................. 6

1.3. KEY MESSAGES .............................................................................................................................. 7

1.4. SATISFACTION SURVEY RESULTS ..................................................................................................... 8

1.4.1. DETAILED RESULTS .................................................................................................................. 8

1.4.2. GLOBAL SATISFACTION OF THE ATTENDEES ABOUT THIS TRAINING ............................................ 10

2. ANNEX 1: SOURCES ......................................................................................................................... 11

List of Figures

Figure 1 The 7 tasks of this project ......................................................................................................... 5 Figure 2 Entities of the stakeholders who answered the satisfaction survey .......................................... 8 Figure 3 Global satisfaction of the workshop .......................................................................................... 9

List of Tables

Table 1 Agenda of the September 25 and 26 training ............................................................................ 6 Table 2 Details for each session ............................................................................................................. 9 Table 3 Opinion about practical exercises ............................................................................................ 10

Table of Versions

Version Version Date Comment Copy Submitted

A.0 October 23 2018 First version Electronic Copy

A.1 October 31 2018 Integration of MENR

comments

Electronic Copy

A.final November 9 2018 Approved version Electronic Copy


Abbreviations

BESS Battery Energy Storage

CAES Compressed Air Energy Storage

CAPEX Capital expenditures

CCPP Combined Cycle Power Plant

CIRED Centre International de Recherche sur l'Environnement et le Développement (International Center of Research on Environment and Development)

CIST EDF Power System and Transmission Engineering Center

DSO Distribution System Operators

EC European Commission

EDF Electricité De France

EE Energy Efficiency

EES Electrical Energy Storage

ELDER Elektrik Dağıtım Hizmetleri Derneği (Association of Distribution System Operators)

EMRA Energy Market Regulatory Authority

EMS Energy Management System

ENEDIS French DSO

ENTSO-E European Network of Transmission System Operators for Electricity

EPRI Electric Power Research Institute

EU European Union

FAT Factory Acceptance Test

GDEA General Directorate of Energy Affairs

GDFRIP General Directorate of Foreign Relations & International Projects

GDRE General Directorate of Renewable Energy

GW Giga Watt

HVAC Heating, Ventilation and Air-Conditioning

IPA The Instrument for Pre-Accession Assistance

IPP Independent Power Producer

IRR Internal Return Rate

LCOS Levelized Cost Of Storage

LNG Liquefied Natural Gas

MENR Ministry of Energy and Natural Resources

MW Mega Watt

MWh Mega Watt Hour

NPV Net Present Value

OPEX Operating expenditures

PHS Pumped Hydro Storage

PJM American Regional Transmission Organization

PRAG Procedures and practical guide

RES Renewable Energy Sources

RTE Réseau de Transport d’Electricité (French TSO)

SAT Site Acceptance Test

SMP System Marginal Price

SOC State Of Charge

TEDAŞ Türkiye Elektrik Dağıtım A.Ş.

TEİAŞ Turkish Electricity Transmission Company

TETAŞ Türkiye Elektrik Ticaret ve Taahhüt A.Ş.

TOR Terms Of Reference

TRY Turkish Lira

TSO Transmission System Operator

TSR Technical Specification Report

UK United Kingdom

USD United States Dollar

WACC Weighted Average Cost of Capital

WB World Bank


1. Executive summary

1.1. Global objectives of the task and the training

This training is the main deliverable of the third task of this project. It took place in the Wyndham Hotel of Ankara on the 25th and 26th of September 2018.

Figure 1 The 7 tasks of this project

The objective of this task is to give a global outlook about frequency control and ancillary services in the European Union. The regulation for batteries is very dependent on the local rules. The benchmark of ancillary practices in Europe is useful to understand why there are differences in the battery regulations in different countries. This way, by analogy we suggestedErreur ! Source du renvoi introuvable. some additional recommendations for battery deployment in Turkey.

This document presents a summary of the main messages of this training. All the slides of this training were sent to the stakeholders.


1.2. Agenda of the training

The training was organized in the following sessions:

September 25

Morning

Introduction to electricity markets in Europe

Technical description of frequency control

Afternoon

Technical description of frequency control – aFRR estimation


– Practical exercise Part 1

September 26

Morning

Introduction of the day

Quiz


– Practical exercise Part 2

Cross-border market of primary reserve in Germany, Austria, Switzerland, Holland,

Belgium and France

Cross-border market of primary reserve in Germany, Austria, Switzerland, Holland,

Belgium and France

– Practical exercise

Elements on the participation of batteries to frequency regulation – Part 1

Afternoon

A look at different ways to deal with ancillary services

Elements on the participation of batteries to frequency regulation – Part 2

Harmonization of the ancillary services in Europe: the Network Code on Electricity

Balancing

Quiz

Satisfaction survey

Table 1 Agenda of the September 25 and 26 training


1.3. Key messages

A 2 day training was provided in Ankara for 20 people from TEIAŞ, and 15 from MENR and ELDER. The main points were:

Some reminders about the role and technical characteristics of ancillary services in Europe (Primary, secondary and tertiary frequency control), also the actors: ENTSO-E, the TSO, balancing service providers (BRP).

The total amount of required FCR in continental Europe is given by the simultaneous loss of the two largest units in the synchronous area: 3,000MW (2 nuclear power plants). The sizing of aFRR is realized by each country. Intermittent generation is going to induce greater uncertainties than the largest thermal trip in future years, so aFRR requirements will increase and new probabilistic methods will be required. A practice was provided on ancillary services requirements estimation.

There are two main ways of operating a system for TSOs in Europe. Reactive TSOs react to solve imbalance and act in real time. This implies more responsibility of imbalance for BRPs and stronger incentives. The imbalances are solved through the intraday market and the imbalance settlement periods is the time to restore frequency. Proactive TSO anticipate more to solve imbalances as they act before real time. Then there is less responsibility of imbalance for BRPs. These TSOs also use Restoration Reserve. The imbalance settlement periods is greater than the time to restore frequency.

ACER aims at harmonizing the rules in Europe than mandated ENTSO-E to propose a new network code to integrate balancing markets. The changes induced by the European harmonization are huge and the complete implementation of the guidelines may take more than one decade. In this training were presented the current implementation projects for all the new balancing products

Common products allow more trading between countries as shown by the FCR Cooperation Project. This regional project currently involves 10 Transmission System Operators (TSOs) from 7 countries: Austria (APG), Belgium (Elia), Switzerland (Swissgrid), Germany (50 Hertz, Amprion, TenneT DE, TransnetBW), Western Denmark (Energinet), France (RTE) and the Netherlands (TenneT NL). It is the largest FCR market in Europe, with a total FCR demand of 1,400 MW, which is almost half of the total demand of the continental Europe synchronous area.

Even if the European regulation for storage is being built, some key characteristics were presented and analyzed. The dead band (+/- 10 mHz) corresponds to very small deviations of the frequency and is crucial since it avoids useless small but permanent solicitations of the battery. Consequently, the costs of the project decrease and finally the cost of procurement for the TSO is lowered. In this frequency area, batteries are allowed to charge or discharge if they need to (according to their recharging strategy).

The System Operation Guide Lines (SO GL) has an impact on battery sizing for FCR. The battery system has to be able to provide FCR in normal operation at any time. In addition, it has to guarantee a capacity to charge or discharge at full capacity when the alert state is triggered. A debate is ongoing on the duration of this energy (15 or 30 minutes).

The recharging strategies for batteries can be continuous (close to real time, then using aFRR) or scheduled (using the intraday market). This last type is more adapted to countries with an intraday closure close to real time, like in Germany. The allowed recharging strategy has a big impact on battery sizing.

After this training and discussions with the attendees, we added more recommendations to the ones formulated Task 1:

Fast FCR is not relevant in Turkey. Even if batteries can react within some milliseconds, they have a cost that has to be compared to the value for the system. Great Britain is connected to Ireland and continental Europe with HVDC connection, and is therefore an electrical island. And as renewables energies are developing fast, Great Britain can face lack of inertia. Continental Europe will not begin to face inertia problems before at least one decade, according to TSOs. This is why there is no plan to develop fast FCR in this area.

A dead band not to overuse batteries. If Turkey decides to authorize batteries to contribute to FCR, we propose that the regulation allows a width of frequency in which the battery doesn’t have to provide the service. This band width will be determined by the TSO in consistence with


the requirements for the other elements providing FCR to the grid and will ensure the safety and stability of the power system.

Allowing continuous recharging strategies. A scheduled recharging strategy can only be relevant in countries were actors can use the intraday market close to real time. The framework of authorized recharging strategies can be bound by the EMRA and TEİAŞ. The time constant of the recharging strategy should be greater than the time constant of the product itself: for example a battery providing FCR should recharge with aFRR. However, actors could be free to propose their own recharging strategy within this framework, to ensure a maximum economic efficiency.

15 minutes for the alert state required energy. Studies are being realized within the ENTSO-E to determine a value between 15 and 30 minutes. As Turkey contributes to Continental Europe FCR, it would be consistent to use the same values when it is known. As a temporary solution, 15 minutes could be asked by the Turkish regulation as the work presented in this training demonstrates it would be unnecessary to ask for more as there were no alert state duration greater than 15 minutes and lower than 30 minutes in the past years.

1.4. Satisfaction survey results

In order to measure the satisfaction of the participants to the training, we asked the attendees to answer a satisfaction survey. From the feedback of the satisfaction survey of the Task 1 workshop, we decided to ask people to answer at the end of the training to maximize the number of answers.

1.4.1. Detailed results

Figure 2 Entities of the stakeholders who answered the satisfaction survey

20 people out of the 25 training participants answered this survey. We can consider the answers are representative of the global opinion.

1

5

14

Which company/entity are you from?

ELDER

MENR

TEIAS


Figure 3 Global satisfaction of the workshop

Attendees are globally satisfied. Average opinion is 7.6 as for the Task 1 workshop.

Sessions

Was the presentation informative/ adequate?

Were the explanations given clear?

Were the information

provided corresponding to

your expectations?

#1: Introduction to electricity markets in

Europe 7,5 7,8 7,1

#2: Technical description of frequency control

7,7 7,8 7,4

#3: Estimating frequency control requirements

7,5 7,8 7,4

#4: Different ways to deal with ancillary services

7,4 7,6 7,5

#5: Harmonization of the ancillary services in Europe

7,6 7,6 7,2

#6: Cross-border market of primary reserve

7,7 7,7 7,7

#7: Elements on the participation of batteries to

frequency regulation 8,0 8,0 8,0

Table 2 Details for each session

All sessions were equivalently positively appreciated [7.1;8.0]. In average the sessions of this Task 3

training were more appreciated than the session of the workshop [6.0 ; 7.6]. Of course, the sessions

fully dedicated to batteries are more appreciated.

0

1

2

3

4

5

6

7

8

9

1 2 3 4 5 6 7 8 9 10

Are you globally satisfied of this workshop?


Practical exercises

Where the explanations given clear?

Were the information provided corresponding to your expectations?

#1: aFRR estimation

7,7 7,1

#2: Cross border market

8,0 7,6

Table 3 Opinion about practical exercises

1.4.2. Global satisfaction of the attendees about this training

Most of the participants gave their opinion. They were globally satisfied (7.6/10).

From the discussions and comments, it seems we could improve the links we make between all the

sessions and make them more explicit. We made an effort so that this training report makes these links

more explicit.

We propose to include next time a summary of the training in the training support.

The feedback from the first workshop was taken into account and sessions were more interactive,

including quizzes and practical exercises. A lot of time was also taken for questions/answers and

discussions.

It results there was a misadequacy of the practical exercises to the profiles of the attendees. In particular,

few participants only was used to work with Excel and to the basics of statistical modeling. For the next

trainings, we will better adapt the computing materials to the profile of the attendees.


2. Annex 1: Sources

[1] EDF R&D, Le stockage de l’électricité, Un défi pour la transition énergétique., Lavoisier ISBN 978-2-7430-2301-0, 2017, p. 114.

[2] ENTSO-E, STATISTICAL FACTSHEET 2017, 2017.

[3] ENTSO-E, TYNDP 2018, 2018.

[4] European Union, Understanding electricity markets in the EU, 2016.

[5] Eurostat, website.

[6] Watt’s next conseil, Secteur européen de l’énergie, 2017.

[7] RTE, Eco2mix website.

[8] ENTSO-E, Electricity Balancing Guidelines and implementation, 2017.

[9] ENTSO-E, Survey on ancillary services procurement, balancing market design, 2016.

[10] ENTSO-E, Explanatory Document to All TSOs’ proposal for the implementation framework for

a European platform for the exchange of balancing energy from frequency restoration reserves with automatic activation in accordance with Article 21 of Commission Regulation (, 2018.

[11] TERRE, TERRE Stakeholders Meeting, 2017.

[12] MARI, MARI Stakeholder Workshop, 2017.

[13] ENTSO-E, Explanatory Document to the proposal of all Transmission System Operators performing the reserve replacement for the implementation framework for the exchange of

balancing energy from Replacement Reserves in accordance with Article 19 of Co, 2018.

[14] ENTSO-E, Electricity balancing guideline and implementation, 2017.

[15] FCR cooperation public consultation document, Public consultation on “FCR cooperation” potential market design evolutions.

[16] Elia, Website.

[17] 50 Hertz, Amprion, Tennet, Transnet BW, Requirements as regards the storage capacity of

batteries providing PCP, 2015.

[18] Florence School of Regulation, The EU Electricity Network Codes, 2017.

[19] E-Bridge, IAEW, Impact of Merit Order activation of automatic Frequency Restoration Reserves and harmonised Full Activation Times, 2016.

[20] Elia, TenneT, Design of a harmonised reactive balancing market with cross zonal optimisation of frequency restoration between LFC Blocks, 2014.

[21] M. Håberg and G. Doorman, Proactive planning and activation of manual reserves in

sequentially cleared balancing markets", , pp., 2017, IEEE, Ed., 2017, pp. 1-6.

[22] Regelleistung.net - Data Center;, aFRR tender details, 2018.


This publication has been produced with the assistance of the European Union. The content of this

publication is the sole responsibility of the consultant and can in no way be taken to reflect the views of

European Union or MENR.

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