Customer Organizations
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The document discusses customer demand response mechanisms for electricity, focusing on how end-users can adjust their energy consumption based on price signals. It outlines two main types of demand studies: total demand and changes in demand, highlighting the importance of creating demand packages and analyzing customer flexibility. The conclusions emphasize the need for research into demand response resources, recommending that operators facilitate consumer participation in energy markets to manage costs and reduce price volatility.
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Customer Organizations
- 1. CUSTOMER ORGANIZATIONCUSTOMER ORGANIZATION Prof. Dr. Carlos Álvarez Instituto de Ingeniería Energética Universidad Politécnica de Valencia ELECTRIC DEMAND SIDE OPERATION DSO MADRID FORUM RED ELÉCTRICA DE ESPAÑA Madrid, October 19, 2005
- 2. CONTENTSCONTENTS 1.1. INTRODUCTIONINTRODUCTION 2.2. PROCESS SUITABILITYPROCESS SUITABILITY 3.3. DEMAND ORGANIZATIONDEMAND ORGANIZATION 4.4. CONCLUSIONSCONCLUSIONS
- 3. CUSTOMERSCUSTOMERS DEMAND RESPONSE WILL COME OUT FROM THE FLEXIBILITYDEMAND RESPONSE WILL COME OUT FROM THE FLEXIBILITY ASSOCIATED TO THE END USER PROCESSES THE CAPABILITYASSOCIATED TO THE END USER PROCESSES THE CAPABILITY OF THE CUSTOMER TO ASSIGN ENERGY USES TO PRICESOF THE CUSTOMER TO ASSIGN ENERGY USES TO PRICES THIS PROCESSES AS WELL AS THE EQUIPMENT TO SUPPLY THETHIS PROCESSES AS WELL AS THE EQUIPMENT TO SUPPLY THE REQUIRED SERVICE LEVELS HAS TO BE INVESTIGATED IN ORDER TOREQUIRED SERVICE LEVELS HAS TO BE INVESTIGATED IN ORDER TO DETERMINE THE AVAILABLE DEMAND RESOURCESDETERMINE THE AVAILABLE DEMAND RESOURCES DEMAND RESPONSE CAN COME FROM CUSTOMER BY TWODEMAND RESPONSE CAN COME FROM CUSTOMER BY TWO MECHANISMS:MECHANISMS: •• IDENTIFICATION OFIDENTIFICATION OF ENERGY REQUIREMENTSENERGY REQUIREMENTS AND ITSAND ITS ASSOCIATEDASSOCIATED BENEFITSBENEFITS (BIDS)(BIDS) •• IDENTIFICATION OF THE OPPORTUNITIES TOIDENTIFICATION OF THE OPPORTUNITIES TO GIVE UP ORGIVE UP OR DELAY OF SOME ENERGY CONSUMPTIONDELAY OF SOME ENERGY CONSUMPTION AND ITSAND ITS ASSOCIATED COST (OFFERS).ASSOCIATED COST (OFFERS). OPPORTUNITY TO MAKE PROFITS FROM THE CUSTOMEROPPORTUNITY TO MAKE PROFITS FROM THE CUSTOMER FLEXIBILITYFLEXIBILITY
- 4. CUSTOMER RESPONSE IN DR PROGRAMS – TWO TYPES OF DEMAND STUDIES: – TOTAL DEMAND OF A CUSTOMER: » BILATERAL CONTRACT » ELECTRICITY MARKETS – CHANGE IN THE DEMAND – CUSTOMER TASK: TO ARRANGE ITS DEMAND INTO DEMAND PACKAGES TO BE OFFERED OR BID MWh 1 24 Changes in the Customer demand Customer buys energy At low prices Day-ahead demand (global demand) Time (h) ↓ CUSTOMERSCUSTOMERS
- 5. • PARAMETERS OF A DEMAND PACKAGE (DP): – TRIGGER PRICE: F (CUSTOMER, END USE) – SIZE AND SHAPE OF THE DP BLOCK: (CUSTOMER, LOAD) – THE NOTICE REQUIRED FOR THE CHANGE IN THE DEMAND – ADDITIONAL LIMITATIONS: NUMBER OF PARTICIPATIONS IN A DAY, MONTH OR YEAR ■ Storage capability ■ Non storage loads Residential ■ Storage capability ■ Non storage loads Commercial ■ Process independent ■ Sequential ■ Process interlocked ■ Storage capability Industrial Controllable loads Capability to reduce demand Type of customer CUSTOMERSCUSTOMERS
- 6. METHODOLOGY FOR DP CREATIONMETHODOLOGY FOR DP CREATION:: COMPREHENSIVE ANALYSIS OF THE CUSTOMER ENDCOMPREHENSIVE ANALYSIS OF THE CUSTOMER END--USES ANDUSES AND PROCESSESPROCESSES •• SEVERAL FACTORS ARE RELEVANT TO ASSES LOAD FLEXIBILITYSEVERAL FACTORS ARE RELEVANT TO ASSES LOAD FLEXIBILITY A.A. FINAL SERVICE SUPPLIED BY THE ELECTRIC LOADFINAL SERVICE SUPPLIED BY THE ELECTRIC LOAD •• HEAT, COOL, ILLUMINATION, PRODUCTIONHEAT, COOL, ILLUMINATION, PRODUCTION •• DUAL FUEL SYSTEMSDUAL FUEL SYSTEMS B.B. STORAGE CAPACITY:STORAGE CAPACITY: PARTIAL, TOTALPARTIAL, TOTAL ELECTRICITYELECTRICITY THERMAL ENERGYTHERMAL ENERGY PRODUCTPRODUCT HYDROGEN, ETCHYDROGEN, ETC C.C. RATE OF LOAD SWITCHING:RATE OF LOAD SWITCHING: NATURAL ON/OFF LOAD SWITCHINGNATURAL ON/OFF LOAD SWITCHING D.D. LOAD DISPATCH AVAILABILITYLOAD DISPATCH AVAILABILITY CUSTOMERSCUSTOMERS
- 7. EXAMPLE OF CUSTOMER LOAD ORGANIZATION – End uses identification: • By analyzing the total load curves in different periods • By non intrusive load monitoring (electronic, HAVC and lighting loads) • By laboratory experiences: offices and classrooms Globalpowerdemand(kW) CUSTOMERS: EXAMPLECUSTOMERS: EXAMPLE
- 8. CLASSIFICATION OF COMMERCIAL AND RESIDENTIAL LOADS ACCORDING TO THEIR SUITABILITY FOR A FLEXIBLE CONTROL • H: High; M: medium; L: low HoursMMHFreezers Min.MMLFridges HoursMHHWater Heater HoursLMHIrrigation and swimming pumps Hours Hours Hours H M M H M H M H H HVAC: ■ Direct ■ Partial storage ■ Full storage HoursHMHDimmable lighting Bid duration DP (real time) DP (short term) DP (medium term) Load CUSTOMERSCUSTOMERS
- 9. CUSTOMER LOAD ANALYSIS :WINTER PEAK Not considered4MWDistributed Gen. Emergency lighting, freezers chambers, etc. 10%Other demands No response available10%?Teaching and Labs equipments No response available15%Electronic loads 300kW external 150kW dimmable 28%Lighting Individual AC, split units and compact 3p units 2%Air conditioning HP + Conventional electric heaters (5%) 35%Space heating ConsiderationsDemandEnd use CUSTOMERS: EXAMPLECUSTOMERS: EXAMPLE
- 10. 3Other loadsL4 1Internal LightingL3b 3Internal LightingL3a 3External LightingL2 0.5Space conditioningL1 Price (€/kWh)DescriptionDemand Package COST OF THE ENERGY BOUGHT IN DAILY MARKET: 7,075 €/DAY
- 11. DEMAND AND ENERGY PRICES 0 1000 2000 3000 4000 5000 6000 7000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Hora KW 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 cent€/KWh L4 L3b L3a L2 L1 PMI PMD
- 12. GENERATION OF DEMAND BIDS • UPV BIDS FOR THE DAY-AHEAD ENERGY MARKET – WINTER PEAK (JANUARY 29, 2002. BID FROM 12 TO 13H) Price(€/kWh) L4+L3a+L2a L2b L1 7.3 0.5 Demand (MW) 3 L3b 5.45.255.15 0.8 1 CUSTOMERS: EXAMPLECUSTOMERS: EXAMPLE
- 13. DEMAND-SIDE OFFERS • SIMULATION RESULTS: COST-DEMAND CURVE – SUMMER PEAK, JULY 9, 2002. HOUR: 13-14H Price(€/kWh) CUSTOMERS: EXAMPLECUSTOMERS: EXAMPLE
- 14. EVOLUTION OF FLEXIBLE LOADS January 0 500 1000 1500 2000 2500 3000 0:00 2:30 5:00 7:30 10:00 12:30 15:00 17:30 20:00 22:30 Time Powerdemand(kW) L1 L2 L3b L3a L4
- 15. January 0 500 1000 1500 2000 2500 3000 0:00 2:30 5:00 7:30 10:00 12:30 15:00 17:30 20:00 22:30 Time Reductions(kW) L1a (0.15€/kWh) L1b (0.25 €/kWh) L1c (0.7 €/kWh) L2b (0.3 €/kWh) 33P>0.25 750.25>P>0.15 0.15>P participationsPrice (P)€/KWh
- 16. Balancing prices for January 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 34.00 36.00 38.00 40.00 1.00 3.00 5.00 7.00 9.00 11.00 13.00 15.00 17.00 19.00 21.00 23.00 HOURS cent€/KWh 3 4 7 8 9 10 11 15 17 18 21 22 23 29 30 31 ESTIMATED INCOME FOR JANUARY 8TH 2003: 5,874.52 € ESTIMATED LOAD CHANMCES IN BALANCING MARKETS (JANUARY 2003)
- 18. BENEFITS OF RETAILBENEFITS OF RETAIL--LOAD PARTICIPATION:LOAD PARTICIPATION: REDUCTION OF PRICE VOLATILITY (DUE TOREDUCTION OF PRICE VOLATILITY (DUE TO DEMAND ELASTICITY).DEMAND ELASTICITY). THE CONSUMER MANAGE ITS PROFITS AND COSTS:THE CONSUMER MANAGE ITS PROFITS AND COSTS: DEMAND IS FLEXIBLEDEMAND IS FLEXIBLE PRICE OPPORTUNITIESPRICE OPPORTUNITIES DEMANDDEMAND ≠≠ GENERATIONGENERATION RECOVERY, LOAD CHANGES,..RECOVERY, LOAD CHANGES,.. →→ AADVANTAGES ANDDVANTAGES AND DRAWBACKSDRAWBACKS CONCLUSIONS
- 19. OPERATORS SHOULD FACILITATE THE PARTICIPATIONOPERATORS SHOULD FACILITATE THE PARTICIPATION OF THE DEMAND:OF THE DEMAND: ENERGY MARKETSENERGY MARKETS ANCILLARY SERVICES AND NETWORK CONSTRAINTSANCILLARY SERVICES AND NETWORK CONSTRAINTS IT IS NECESSARY TO PERFORM EXTENSIVE RESEARCHIT IS NECESSARY TO PERFORM EXTENSIVE RESEARCH TO FIND THE DEMAND RESPONSE RESOURCESTO FIND THE DEMAND RESPONSE RESOURCES IDENTIFICATION OF CUSTOMER SEGMENTSIDENTIFICATION OF CUSTOMER SEGMENTS LOAD RESPONSE MODELSLOAD RESPONSE MODELS PRICE AND COST EVALUATION TOOLS TO PERFORMPRICE AND COST EVALUATION TOOLS TO PERFORM OFFERS AND BIDSOFFERS AND BIDS CONCLUSIONS
- 20. Áreas de actividad Área Renovables Área Térmica Área Nuclear Área Eléctrica Instituto de Ingeniería Energética Prospectiva y evaluación Aplicaciones no energéticas