the electric grid 2.0 - fergus wheatly
DESCRIPTION
This is Fergus Wheatly\'s presentation at the it@cork Green IT Conference on November 26, 2008TRANSCRIPT
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Electricity Grid 2.0
Fergus Wheatley B.Sc (eng).
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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.
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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
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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.
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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.
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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.
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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.
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Generated.
Highlight line, accept or reject to Grid instructions.
Declare Available MWatts.
Exported to Grid. (i.e. After House load subtracted).
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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.
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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.
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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.
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System Records
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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,
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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.
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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.
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iLon Smart Server
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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
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Screen shot of Synergy Setup
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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.