This project has received funding from the European Union’s Horizon2020 research and Innovation programme under grant agreement No The sole responsibility for the content of this presentation lies with the authors. It does not necessarily reflect the opinion of the European Union. Neither INEA nor the European Commission are responsible for any use that may be made of the information contained therein Using the flexibility in the electricity demand of cold storage and logistics as a tool for lower energy costs Fernando Nuño, European Copper Institute ECSLA Brussels / 9 September 2015

The challenge the IndustRE project sees the industrial electricity demand flexibility as an opportunity to deal with both challenges at the same time The cost-effective integration of variable renewable electricity into the European power systems The rising cost of electricity and its effects on the competitiveness of the European Industry

Project objectives The project will bring together the large industry with renewable energy community in order find common ground and create win-win situations. Formulate business models Develop tools to facilitate their adoption Quantify the potential benefits for the power system Formulate policy recommendations

Project Focus

Geographical Coverage

Business models context Here we outline all possible ways that the electricity demand flexibility of industrial plants can benefit from and to the power system Then, these “business models” will be further detailed and adapted to the target countries Tools will be developed to advise industrial plants on concrete actions Case studies will be implemented and policy recommendations formulated

Business Model A: before gate-closure Shift demand to low-cost periods Reduce the energy bill by shifting consumption to time-periods with lower costs exploitation of ToU tariffs tailored agreements with the electricity supplier procure electricity directly from the wholesale / spot market Market signals or supplier requests

Business Model B: after gate closure Offering services to TSO / DSO Offer reserve capacity for frequency control Capacity can be offered directly or through an aggregator. In the future other services may be introduced: generation investment deferral (capacity markets) transmission network congestion management reactive power control to TSO DSO services including peak demand shaving, active and reactive power control, voltage support

How can ECSLA benefit from IndustRE? Consultation on Business Models per country Advisory Board Case Studies (6) Provide direct views on the proposed business models Be a major voice to suggest improvements in the market / regulatory framework Be in the loop on outcomes of the consultation process Monitor the project progress Provide feedback, advice and guidance Contribute to the policy recommendations ECSLA members among candidates for a “case study”: free assessment of demand flexibility of one plant (incl. quantification) Evaluation and modeling of different business model scenarios to advise on real opportunities for this plant

What is needed to participate? Consultation on Business Models per country Advisory Board Case Studies (6) National Associations / Members to fill-in the online questionnaire (~20 minutes) ECSLA invited to a Workshop on the conclusions of the consultation – 27th October 2015 PM, Brussels 1 half-day meeting per year - 27th October 2015 PM, Brussels Help to recruit one Industrial site according to selection criteria (e.g. Country, sector, consumption profile) Some time spent of local plant experts (energy manager) for on-site audit and further communication with our advisors

Contact:

Annex - Project overview WP1 - Management WP2 Business Models WP2 Business Models WP3 Implementation tools WP3 Implementation tools WP4 Case Studies WP4 Case Studies WP5 Benefits and policy recommendations WP5 Benefits and policy recommendations WP6 Communication WP6 Communication Description of existing and potential new business models Regulatory analysis Consultation Flexibility Assessment Commercial strategies Simplified on-line tool Selection Application of tools Technology transfer Implementation and follow-up Regulators (CEER / ACER) Industry Fora, associations T&D sector Utilities, aggregators Renewable Energy community Extrapolation at EU-wide level Quantification of the cumulative potential and benefits

Annex - Business Models Type A: before gate closure A.1 Adapting manufacturing program to Time of Use tariffs (static price signals) A.2 Response to dynamic price signals: A.2.1) Industry with a generic energy supplier A.2.2) Industry with an energy supplier that has renewable energy assets A.2.3) Industry with on-site renewable generation (self- consumption). More parameters for optimization. A.3 Energy procurement from wholesale / spot market (either with or without on-site renewable generation) A.4 Reduction of peak power (lower power contracted with the grid, lower fix term)

Annex - Business Models Type B: after gate closure B.1 Offering reserve capacity to the system operator, either directly or through an aggregator Primary, Secondary and/or Tertiary reserves B.2 Offering reserve capacity to the balancing responsable party B.3 Other services to system operator: Long-term generation investment deferral (capacity markets) Network congestion management Reactive power control Distribution system services

Annex - Business Models Initial feasibility assessment