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201806 n side energyflexibilityforum pres

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N-SIDE
N-SIDE

H¨¦lo?se Hoyos, Senior consultant at N-SIDE, gave a presentation about how to valorize your energy flexibility during the Energy Flexibility Forum organised by Solar Plaza on June 11-12

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1 Energy Flexibility Valorization - H¨¦lo?se Hoyos - Senior Consultant (N-SIDE)
2 Markets Where to value my flexibility ? Process Where is my energy flexibility ? How to extract it ? Two main topics to address when speaking about Demand Response Management
3 Process Where is my energy flexibility ? Two main topics to address when speaking about Demand Response Management Which kind energy flexibility ? How much from my flexibility can I leverage . How can I use it managing all my constraints ? What does flexible mean ? I don¡¯t want to stop my process ! What ? What ? How ? How ?
Multiple Energy flexibilitiy levers observed in Industry What ?
5 Many flexible processes: ¡­ with opportunities in various areas from electro-intensive to residential level Source: EnergyVille 2017 What energy flexibility ? Which process/asset ? What ?
Extract and daily operate the energy flexibility can be complex and multiple aspects need to be considered 6 Process planning is not only about electricity cost¡­ Minimize Energy Bill Minimize Operational Cost Minimize Time spent Many additional constraints need to be taken into account: Technical, Economical and Commercial ¡­. Also the willingness needs to be considered (i.e. Residential flexibility) ¡­ many other objectives need to be considered (i.e. minimization of the time spent charging a EV) ¡­ Finally, reactivity is a key in the design of an optimal planning in order to make the most from the flexibility. € How much from my flexibility can I leverage . What ?
7 Markets Where to value my flexibility ? Two main topics to address when speaking about Demand Response Management Where should I valorize my flexibility in a safe and profitable way?What does flexible mean ? I don¡¯t want to stop my process ! Where ? Where ? How much can I hope ? I have a high cost to operate my flexibility Where ?
8 ? Programs giving customers time-varying rates that reflect the value and cost of electricity in different time periods. ? Armed with this information, customers tend to use less electricity at times when electricity prices are high Implicit Demand ResponseExplicit Demand Response Two types of Demand Response (DR) DR Programs offering complementary opportunity to flexibility Incentive-Based Demand Response Price-Based Demand Response ? Programs that pay participating customers for reducing or increasing their loads at a specific time defined by the program sponsor. ? These events are triggered in general by a grid reliability problem.
9 Incentive-Based and Price-based programs offering complementary varlorization to energy flexibilities¡­ Incentive-Based Price-Based Demand Response Valorization Opportunity Day ahead Market Imbalance Market Intra-Day Market FCR progams aFRR programs mFRR programs Strategic reserve programs Capacity Market programs Congestion Management Where should I valorize my flexibility in a safe and profitable way? Where ?
Markets requirements for valorization Energy Flexibility Level of Reactivity Energy Constraints Commitment Timing Remuneration ? Access How fast I am supposed to be able to react ? With which time granularity do I need to follow a setpoint ? How often do I need to react/adapt my load ? How long do I need to reduce/increase my load ? How long in advance do I need to commit in terms of availability ? What level of remuneration can I expect ? For my availability (Reservation cost) ? For my activation/energy ? How can I have access to this flexibility product/approach ? What type of electricity contract do I need to have ? How much can I hope ? I have a high cost to operate my flexibility Where ?
Advanced Analytics as an key enabeler to manage compexity behind energy flexibility operation DESCRIPTIVE ANALYTICS PRESCRIPTIVE ANALYTICS DATA ECOSYSTEM Where ? PREDICTIVE ANALYTICS When / How ?
Concrete example: Pulp and Paper Industry Wood Supply Mechnical Pulp Lines Pulp Storage Paper Machines Paper Storage Paper Demand Market Grid CHP + Electricity Management Buy / Sell
Concrete example: Pulp and Paper Industry Mechnical Pulp Lines ? Overcapacity: 10% ? High Consumption: 30 MW ? 5 Lines of ON/OFF Process ? Ramp up/down constraints 1H ? High Supply Chain constraints Paper Machines ? No overcapacity ? Medium consumption: 6 MW ? No stops allowed (high cost to start-up and production loss) CHP ? High production of electricity: 20 MW ? Steam Storage ( 10H of steam demand) ? Highly flexible to switch production level of steam vs electricity WHAT to leverage ? Mechnical Pulp Lines ? Min time step 1 hour ? Load Shifting opportunity ? Production planning set-up in advance Paper Machines ? Load Shedding opportunity ? High cost to be covered ? # of Activations of flexibility should remain limited CHP ? Time step is short [1- 15 min] ? # of activations of flexibility can be high ? Period of activation can last up to 10 Hours WHERE to leverage ? ? Day-ahead Market ? Ancillary Services ? DA Market, Balancing market or ancillary Services ? Load Shifting ? Load Shedding ? Steam/Electricity arbitrage
Concrete example: Pulp and Paper Industry How to leverage ? UC1: Reserve Optimization UC2: DA Nominations Optimization UC 3: Intraday Optimization UC4: Balancing Optimization UC 5: Activation Optimization Weekly / Day ahead Auctions Day ahead 3-4 Hours ahead 1 hour ahead 1-5 min ahead
Concrete example: Pulp and Paper Industry How to leverage ? UC1: Reserve Optimization UC2: DA Nominations Optimization UC 3: Intraday Optimization UC4: Balancing Optimization UC 5: Activation Optimization Weekly / Day ahead Auctions Day ahead 3-4 Hours ahead 1 hour ahead 1-5 min ahead What power and energy prices to bid on reserve market ? Is it better to propose my flexibility on reserve markets or to keep it for DA/Intraday/Balancing optimization ? How many MWs to offer on the different reserve markets for the coming week(s)/day(s) ? What are the best flexibility products for me, based on my processes characteristics ?
Concrete example: Pulp and Paper Industry How to leverage ? UC1: Reserve Optimization UC2: DA Nominations Optimization UC 3: Intraday Optimization UC4: Balancing Optimization UC 5: Activation Optimization Weekly / Day ahead Auctions Day ahead 3-4 Hours ahead 1 hour ahead 1-5 min ahead How to leverage variability of spot prices in my CHP planning ? How to manage and optimize the interconnection between production scheduling and CHP planning ? How to generate nominations that minimize electricity costs and reduce imbalance risks ? How to optimize my production schedule based on electricity price variability ?
Concrete example: Pulp and Paper Industry How to leverage ? UC1: Reserve Optimization UC2: DA Nominations Optimization UC 3: Intraday Optimization UC4: Balancing Optimization UC 5: Activation Optimization Weekly / Day ahead Auctions Day ahead 3-4 hours ahead 1 hour ahead 1-5 min ahead How to adapt my nominations if I have to change my planning during the day ? Can I benefit from lower electricity prices in intraday market ? At what price do I have to propose my flexibility on the intraday market ? How to mitigate the imbalance risks linked to on-site RES on the intraday market ?
Concrete example: Pulp and Paper Industry How to leverage ? UC1: Reserve Optimization UC2: DA Nominations Optimization UC 3: Intraday Optimization UC4: Balancing Optimization UC 5: Activation Optimization Weekly / Day ahead Auctions Day ahead 3-4 Hours ahead 1 hour ahead 1-5 min ahead How to minimize in real- time the imbalance volume despite of last minute changes in my processes and order book ? Is it better to consume more now or to nominate more for tomorrow ? Do I have to modify my planning in real-time to benefit from attractive imbalance prices ? How to manage the imbalance created by on- site RES ?
Concrete example: Pulp and Paper Industry How to leverage ? UC1: Reserve Optimization UC2: DA Nominations Optimization UC 3: Intraday Optimization UC4: Balancing Optimization UC 5: Activation Optimization Weekly / Day ahead Auctions Day ahead 3-4 Hours ahead 1 hour ahead 1-5 min aheadHow to convert my balancing recommendations into actions at the asset level ? How to manage unavailability of commited assets ? In case of activation by TSO/aggregator, how to provide the required load shedding at lowest possible cost ? How to re-optimize my planning after a demand-response event ?
Want to unlock your energy flexibility ? Want to simulate your potential ? - Meet us on N-SIDE booth -

More Related Content

201806 n side energyflexibilityforum pres

  • 1. 1 Energy Flexibility Valorization - H¨¦lo?se Hoyos - Senior Consultant (N-SIDE)
  • 2. 2 Markets Where to value my flexibility ? Process Where is my energy flexibility ? How to extract it ? Two main topics to address when speaking about Demand Response Management
  • 3. 3 Process Where is my energy flexibility ? Two main topics to address when speaking about Demand Response Management Which kind energy flexibility ? How much from my flexibility can I leverage . How can I use it managing all my constraints ? What does flexible mean ? I don¡¯t want to stop my process ! What ? What ? How ? How ?
  • 4. Multiple Energy flexibilitiy levers observed in Industry What ?
  • 5. 5 Many flexible processes: ¡­ with opportunities in various areas from electro-intensive to residential level Source: EnergyVille 2017 What energy flexibility ? Which process/asset ? What ?
  • 6. Extract and daily operate the energy flexibility can be complex and multiple aspects need to be considered 6 Process planning is not only about electricity cost¡­ Minimize Energy Bill Minimize Operational Cost Minimize Time spent Many additional constraints need to be taken into account: Technical, Economical and Commercial ¡­. Also the willingness needs to be considered (i.e. Residential flexibility) ¡­ many other objectives need to be considered (i.e. minimization of the time spent charging a EV) ¡­ Finally, reactivity is a key in the design of an optimal planning in order to make the most from the flexibility. € How much from my flexibility can I leverage . What ?
  • 7. 7 Markets Where to value my flexibility ? Two main topics to address when speaking about Demand Response Management Where should I valorize my flexibility in a safe and profitable way?What does flexible mean ? I don¡¯t want to stop my process ! Where ? Where ? How much can I hope ? I have a high cost to operate my flexibility Where ?
  • 8. 8 ? Programs giving customers time-varying rates that reflect the value and cost of electricity in different time periods. ? Armed with this information, customers tend to use less electricity at times when electricity prices are high Implicit Demand ResponseExplicit Demand Response Two types of Demand Response (DR) DR Programs offering complementary opportunity to flexibility Incentive-Based Demand Response Price-Based Demand Response ? Programs that pay participating customers for reducing or increasing their loads at a specific time defined by the program sponsor. ? These events are triggered in general by a grid reliability problem.
  • 9. 9 Incentive-Based and Price-based programs offering complementary varlorization to energy flexibilities¡­ Incentive-Based Price-Based Demand Response Valorization Opportunity Day ahead Market Imbalance Market Intra-Day Market FCR progams aFRR programs mFRR programs Strategic reserve programs Capacity Market programs Congestion Management Where should I valorize my flexibility in a safe and profitable way? Where ?
  • 10. Markets requirements for valorization Energy Flexibility Level of Reactivity Energy Constraints Commitment Timing Remuneration ? Access How fast I am supposed to be able to react ? With which time granularity do I need to follow a setpoint ? How often do I need to react/adapt my load ? How long do I need to reduce/increase my load ? How long in advance do I need to commit in terms of availability ? What level of remuneration can I expect ? For my availability (Reservation cost) ? For my activation/energy ? How can I have access to this flexibility product/approach ? What type of electricity contract do I need to have ? How much can I hope ? I have a high cost to operate my flexibility Where ?
  • 11. Advanced Analytics as an key enabeler to manage compexity behind energy flexibility operation DESCRIPTIVE ANALYTICS PRESCRIPTIVE ANALYTICS DATA ECOSYSTEM Where ? PREDICTIVE ANALYTICS When / How ?
  • 12. Concrete example: Pulp and Paper Industry Wood Supply Mechnical Pulp Lines Pulp Storage Paper Machines Paper Storage Paper Demand Market Grid CHP + Electricity Management Buy / Sell
  • 13. Concrete example: Pulp and Paper Industry Mechnical Pulp Lines ? Overcapacity: 10% ? High Consumption: 30 MW ? 5 Lines of ON/OFF Process ? Ramp up/down constraints 1H ? High Supply Chain constraints Paper Machines ? No overcapacity ? Medium consumption: 6 MW ? No stops allowed (high cost to start-up and production loss) CHP ? High production of electricity: 20 MW ? Steam Storage ( 10H of steam demand) ? Highly flexible to switch production level of steam vs electricity WHAT to leverage ? Mechnical Pulp Lines ? Min time step 1 hour ? Load Shifting opportunity ? Production planning set-up in advance Paper Machines ? Load Shedding opportunity ? High cost to be covered ? # of Activations of flexibility should remain limited CHP ? Time step is short [1- 15 min] ? # of activations of flexibility can be high ? Period of activation can last up to 10 Hours WHERE to leverage ? ? Day-ahead Market ? Ancillary Services ? DA Market, Balancing market or ancillary Services ? Load Shifting ? Load Shedding ? Steam/Electricity arbitrage
  • 14. Concrete example: Pulp and Paper Industry How to leverage ? UC1: Reserve Optimization UC2: DA Nominations Optimization UC 3: Intraday Optimization UC4: Balancing Optimization UC 5: Activation Optimization Weekly / Day ahead Auctions Day ahead 3-4 Hours ahead 1 hour ahead 1-5 min ahead
  • 15. Concrete example: Pulp and Paper Industry How to leverage ? UC1: Reserve Optimization UC2: DA Nominations Optimization UC 3: Intraday Optimization UC4: Balancing Optimization UC 5: Activation Optimization Weekly / Day ahead Auctions Day ahead 3-4 Hours ahead 1 hour ahead 1-5 min ahead What power and energy prices to bid on reserve market ? Is it better to propose my flexibility on reserve markets or to keep it for DA/Intraday/Balancing optimization ? How many MWs to offer on the different reserve markets for the coming week(s)/day(s) ? What are the best flexibility products for me, based on my processes characteristics ?
  • 16. Concrete example: Pulp and Paper Industry How to leverage ? UC1: Reserve Optimization UC2: DA Nominations Optimization UC 3: Intraday Optimization UC4: Balancing Optimization UC 5: Activation Optimization Weekly / Day ahead Auctions Day ahead 3-4 Hours ahead 1 hour ahead 1-5 min ahead How to leverage variability of spot prices in my CHP planning ? How to manage and optimize the interconnection between production scheduling and CHP planning ? How to generate nominations that minimize electricity costs and reduce imbalance risks ? How to optimize my production schedule based on electricity price variability ?
  • 17. Concrete example: Pulp and Paper Industry How to leverage ? UC1: Reserve Optimization UC2: DA Nominations Optimization UC 3: Intraday Optimization UC4: Balancing Optimization UC 5: Activation Optimization Weekly / Day ahead Auctions Day ahead 3-4 hours ahead 1 hour ahead 1-5 min ahead How to adapt my nominations if I have to change my planning during the day ? Can I benefit from lower electricity prices in intraday market ? At what price do I have to propose my flexibility on the intraday market ? How to mitigate the imbalance risks linked to on-site RES on the intraday market ?
  • 18. Concrete example: Pulp and Paper Industry How to leverage ? UC1: Reserve Optimization UC2: DA Nominations Optimization UC 3: Intraday Optimization UC4: Balancing Optimization UC 5: Activation Optimization Weekly / Day ahead Auctions Day ahead 3-4 Hours ahead 1 hour ahead 1-5 min ahead How to minimize in real- time the imbalance volume despite of last minute changes in my processes and order book ? Is it better to consume more now or to nominate more for tomorrow ? Do I have to modify my planning in real-time to benefit from attractive imbalance prices ? How to manage the imbalance created by on- site RES ?
  • 19. Concrete example: Pulp and Paper Industry How to leverage ? UC1: Reserve Optimization UC2: DA Nominations Optimization UC 3: Intraday Optimization UC4: Balancing Optimization UC 5: Activation Optimization Weekly / Day ahead Auctions Day ahead 3-4 Hours ahead 1 hour ahead 1-5 min aheadHow to convert my balancing recommendations into actions at the asset level ? How to manage unavailability of commited assets ? In case of activation by TSO/aggregator, how to provide the required load shedding at lowest possible cost ? How to re-optimize my planning after a demand-response event ?
  • 20. Want to unlock your energy flexibility ? Want to simulate your potential ? - Meet us on N-SIDE booth -