linking wholesale and retail market – through smart grid

Linking wholesale andretail market – through smart grid

Electricity Market Day 5 April 2016

Risto Lindroos, Senior Advisor, Fingrid Oyj

Power system change

requires harnessing

the full flexibility

potential – also that of

small consumers

To support security of supply, consumers have to

participate actively in the electricity market

Task involves many parties

The energy industry and

the authorities must cooperate

Consumer does not know

what to do

We need service providers

and efficient business

processes

Task is technically challenging

We need an infrastructure

from consumers to

the market – a smart grid.

We need a swift and secure infrastructure

for load control – a smart grid

Power system real time data

gets more important for

suppliers, DSOs and TSO

The current problem:

Load control via AMR is

not suitable for real

time market needs

Maintenance of the power

balance requires quick means

to react in real time or very

close to the operating hour

Market value of demand response grows towards the operating hour

• Economical potential highest in the

balancing and ancillary services market

as well as in the intraday market

• Reinforcing the price signals will

improve the business case for load

control infra

• The present time-of-day tariff control of

electric storage heating do not

maximise the consumer and system

value and cannibalizes the business

case

A move from time-of-use control to market price control necessary

Consumer participation in the market has been

discussed long but little has happened.

Unclear roles are partly to blame.

Infrastructure

companies should

enable commercial

activities• DSOs: metering,

tariffs etc.

• TSOs: datahub, real

time data exchange,

market development

Commercial actors have an interest but they need

also the possibility to provide a full service package

to consumers.

Unclear roles in the market harm the flexibility business case

Roles should be clarified which may require legislative actions

• New real time businesses, as

flexibility operation, develop as

market based

• Challenges:

– Distributed real time model

cannot provide with transparent

real time data

– Neutral party who develops data

exchange is lacking

– Cyber security

– Great number of interfaces, data

quality, data accessibility

X Data exchange function DMS Distribution management system

CONTROL DATA EXCHANGE

REAL TIME ACTIVITIES

DMSDMS

DMSDMS

DMS

Network

status

Flexibility

operation

Charging

operation

Retail

market

DATAHUB

Wholesale

market

(NBS)

MARKET TRANSACTION

DATA EXCHANGE

Vision of real time data exchange from Datahub study

must be revised

Controlhub – a revised vision of real time data exchange

Cyber security

Real time

market

platform

TSO

DSO

Fingrid ancillary services market

Control

device A

Control

device B

Flexibility

operators

Supervision and verification of real time reserves

Aggregated bids on ancillary services market

Real time data of distributed resources

Suppliers

BRPs

Control via real time platform

Standard interface, centralised cyber security

Customer control device interface remains in supplier changes

Consumer flexibility potential

Vision: From consumer to active energy citizen via smart grid

2018–2020Consumers participatewidely in demandresponce.

2019Access toconsumptiondataimproved bydatahub.

2020–22Datahubfacilitates 3. partyservices.

Consumers mayparticipate inenergycommunities.

2021–25Consumers have achoice as regardssecurity of supply.

Controlhub facilitatesconsumers'voluntary loadreduction in grid andpower shortage.

2022–25Electricity asa service.

Consumers haveaccess to a largerretail market.

?The way forward:

in cooperation and each respectively

• Reinforcing market price signals

• Arranging real time data exchange of the smart

grid (analysis of e.g. centralized controlhub)

• Prerequisites for the Nordic retail market

integration (e.g. NBS, datahub)

TSOs

The way forward: in cooperation and each respectively

• Move to power based tariffs,

harmonizing/simplifying

• Giving up the time-of-use tariffs load control

• Facilitating smart grid for the retail market

DSOs


• Offering flexibility products and service

packages

• Cooperation with equipment vendors/ IT-

providers

Service providers/

Suppliers


• Smart grid working group for directing and

coordinating industry cooperation

• Clarification of DSO and supplier roles

• Preparing the necessary legislation

Ministry/

Government


• Integration of Nordic retail market

(together with the TSOs et alia)Regulators


Fingrid Delivers. Responsibly.

linking wholesale and retail market – through smart grid

Engineering