Brussels Workshop Use case 3 11/09/2015 Mario Sisinni

1.Introduction to UC3 Objectives of UC3 Key technologies and optimization tools 2.UC3 Process Reference grid in Wales LV grid data Standard grid Projected grid Smart grid Simulations 3.Issues Grid users and DSO’s objectives

1.Introduction to UC3 Use cases objectives and boundaries Use case 3 This Use Case does attempt to simulate the complex relationships between grid actors, the existing energy markets in the various countries and the related constraints, trying to define a framework in which actors can successfully coexist and the objectives of the project can be achieved. In particular Use case 3 attempts to overcome the issues related to the antagonistic objectives of final customers (that want to pay less) and DSO (that want to reduce losses and consumption). Due to the greater complexity of such a scenario, this only relies on simulations to assess the effectiveness of such an approach. However, while the simulations will demonstrate the technical feasibility of such a mechanism, the economic viability will be analysed in parallel based on the results of the simulations (reduction in grid losses, increased renewable hosting capacity, increased reliability, etc.) and the market constraints of the proposed scenario. Quantified objectives to meet  Peak load reduction at district level up to 15%  Grid losses reduction up to 5-7%  Renewable grid hosting capacity increased by 12-15%  Reduced switch-off time per year Global objectives to meet Enhanced performance, resilience and reliability of the LV grid

1.Introduction to UC3 Key technologies and optimization tools Domestic smart meters & Energy Boxes Used to monitor use of domestic technologies (programmable appliances, storage, RES, EV) and provide the MAS with forecasted information for the optimization. MAS (Multi Agent System) Used to carry out a local optimization of the flexibility provided by smart technologies (both domestic and district ones) and meet project’s objectives (grid balancing and enhanced performance). Link Boxes Used to connect two substations at LV level to (i) enable flexibility between adjacent LV grids and (ii) allow transformers to be switched off in periods of low demand, thus reducing overall grid losses.

Reference grid in Wales DNO: Western Power Distribution (WPD), South Wales Area: Trevethin, Pontypool 2.UC3 process

LV grid data WPD provided us with average data of different type of users of the reference standard grid Data will be diversified to provide each node of the reference standard grid with a load profile A model of the reference standard grid will be simulated to calculate the current performances of the reference LV grid 2.UC3 process

Standard grid Our standard grid only includes domestic or small commercial users The standard grid has a radial configuration. There is no direct connection between substations at LV level. 2.UC3 process

Projected grid Projected profiles are created using smart grid’s scenarios based on UK National grid studies. The projected grid includes Link boxes and district and domestic smart technologies (RES, storage, EV, programmable appliances). Domestic users are provided with smart Energy boxes that monitor use of domestic appliances. 2.UC3 process

Smart grid Flexibility provided by domestic and district smart technologies is managed locally based on DSO’s objectives (e.g. peak reduction). The optimization of the use of smart technologies is provided by the MAS and is based on forecasted information (e.g. price of electricity, weather conditions, programmed use of smart appliances, etc.). The respect of grid voltage statutory limits at all nodes is instead checked using an electrical simulation of the grid. This is also used to calculate the performance of the smart grid. 2.UC3 process

SimulationsObjectiveSoftware 1) Standard grid Show the current performance of the standard grid Results to be compared with projected and smart grid’s ones to assess the achievement of the objectives of the project. Grid-Lab D 2) Projected grid Show the performances of the projected grid (not yet smart) Results to be compared with optimised smart grid’s ones to assess the achievement of the objectives of the project. Grid-Lab D 3) Smart grid (with local MAS optimization) Demonstrate the benefits of local optimization. Results to be compared with standards and projected grids’ ones to assess the achievement of the objectives of the projects Grid-Lab D + MAS (Full optimization) Simulations Smart grid varying conditions Price of electricity Weather conditions Period of the year Day of the week Smart grid Optimization/Simulation’s potential objectives Maximise grid power quality conditions Maximise peak reduction Maximise efficient use of storage systems (charging and discharging cycles) Maximise final user’s energy savings or reduction in energy expenditure Maximise time in which local portion of the grid can work “stand alone” Combination of the previous The comparison between the results of smart grid simulations and the initial projected & standard grid ones will be used to assess the achievement of the project’s objectives. 2.UC3 process

Simulations 2.UC3 process The MAS is used to optimise use of smart grid’s elements according to external varying conditions and objectives of the optimization. Projected profiles for each node Forecasted information (price of electricity, renewable generation, etc.) Available flexibility Objective of the optimization MAS optimises use of the smart grid’s elements and provides updated profiles Profiles are used into electrical simulation to check that grid statutory limits and physical constraints are always met at all nodes. Every time additional information is provided the process starts again Final profiles for each time step are recorded for assessment Grid physical constraints are part of the optimization

3.Issues The objective of domestic users is to use flexibility provided by their smart appliances to reduce their energy expenditure. The objective of DSOs is to ensure LV grid balancing, respect of voltage and power quality statutory limits and to improve grid performances (reduction of peaks and grid losses) using flexibility. The coincidence of the two objectives not always occur Which could be a technically and economically viable way to overcome the problem of the conflicting objectives of the various actors of the grid?

3.Issues -Incentives Domestic users are rewarded with incentives when they do not use their flexibility to meet their own objectives (bill based on tarriff structure and eventual purchase agreement for RES), but the DSO’s ones. This approach is based on an enhanced demand-side management of small customers or rise of ‘decentralized’ production (such as mini-CHP, PV,...) and storage, with great involvement of the domestic user. CHALLENGES: Definition of incentives, legal constraints to use domestic users data, economic viability of the mechanism, involvement of the domestic user. -Establishment of a local flexibility market. Flexibility provided by domestic users is bid to a local flexibility market. Flexibility is bought by district management according to DSO’s objective by choosing the lowest bid. Domestic users are rewarded for the provision of flexibility at least the amount they are losing by not using their flexibility to meet their own objectives. MAIN CHALLENGES: Definition of bids, economic viability of the mechanism, technical (possible answer : MAS platform) Possible solutions:

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