security needs in a transitioning system...•should it be mandated, or procured voluntarily through...
TRANSCRIPT
SYSTEM SERVICES
SECURITY NEEDS IN A TRANSITIONING SYSTEM
CHRISTIAAN ZUURDIRECTOR, AUSTRALIAN ENERGY MARKET COMMISSION
ARENA INSIGHTS FORUM, 25 JUNE 2019
Australian Energy Market Commission
Rule maker, market developer and expert adviser
to governments
Protects consumers and achieves the right trade-off between cost,
reliability and security.
Australian Energy Regulator
Economic regulation and rules compliance
Polices the system and monitors the market.
Australian Energy Market Operator
Electricity and gas systems and market operator
Works with industry to keep the lights on.
AEMC AER AEMO
Market body roles
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AEMC priority areas of reform
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1.Generator access and transmission pricing
Shift from large geographically concentrated to small geographically dispersed generation
2. System securityServices previously provided for free not necessarily provided by new generation
3.Integrating distributed energy resources
Increased adoption of small-scale solar and energy storage technologies
4.Digitalisation of energy supply
Increased adoption of digital technologies
5.Aligning financial incentives with the physical needs
More variable demand and supply creating volatility
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We have a unique system in Australia where anyone, any company, government, advocacy group or individual
person, can propose a change to the rules.
The Commission will prioritise rule change requests and other work in these five priority areas.
System services: so hot right now
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There’s been a lot of talk about the services we need to support the security of the power system, through the transition to high renewables.
However:
• What exactly does the system need?
• What do these services look like?
• What do we already have?
• What do we need to think about when developing a new service?
What are these services anyway?
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• Broadly speaking, we talk about:
• Frequency / active power control
• Voltage / reactive power control
• Inertia
• Fault current / system strength
• System restart
• Grid forming?
• There are a number of other system security capabilities mandated in the generator
performance standards – reactive support during a fault, active power recovery,
withstand capability. These capabilities are also critical to system security
So, what are these services, and when do we need them?
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• Many of these services were almost a byproduct of the generation of
megawatts - we didn’t need to think that much about them
• As the generation mix changes from a small system of large synchronous
generators, to a larger system of smaller asynchronous generators, these
services aren’t always provided “for free”
• So, now we need to think about how we get what we need
• AEMO is progressing work looking at what the system needs, and when it
will be needed – March 2018 “Power System Requirements” report
• The AEMC is working closely with AEMO to look at how these services
might be designed and procured
How are things changing?
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The change in availability of services is having multiple impacts
Source: AEMC
What has the AEMC done so far to address this?
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Inertia: slows the rate of change of frequency following a disturbance
• AEMC: “Managing the rate of change of power system frequency rule”
• Allows for provision of both kinetic inertia, or synthetic inertia by batteries, to meet
inertia requirement.
Fault current / system strength: stabilises the system
• AEMC: Power system security review, and “Managing power system fault levels rule”
• Interventions and system strength review – can batteries provide these services?
Frequency control: controlling system frequency through control of active power
• AEMC: “Emergency frequency control schemes rule”, Frequency control frameworks
review
What has the AEMC done so far to address this?
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System restart: A capability to restart the system following a black system event,
traditionally provided by dispatchable synchronous machines with self start capability
• AEMC ”System restart ancillary services rule”, AEMC Reliability Panel: System Restart
Standard
• Rule changes upcoming from AEMO and AER – can batteries assist in system restart?
Generator performance standards: mandated capabilities for generators
• AEMC “Generator technical performance standards” rule change
Frequency control – a key system service
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Active power response to a change in power system
frequency
• Primary frequency control - used to be provided “for
free” by synchronous generators – but less so now
• Upcoming rule changes on mandated provision of
primary frequency control
• Some batteries / wind offering frequency control:
• Hornsdale power reserve and ESCRI offering
FCAS, and other services
• Hornsdale and Mussleroe WF ARENA trial for
FCAS
• Other forms of large scale storage can also offer
these services
How do we get what we need?
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When deciding how to source these services, there are some key questions to ask
• Should it be mandated, or procured voluntarily through some kind of market?
• If mandated, who decides how much is to be provided? And who bears that cost?
• If it is procured from a voluntary market, should it be procured through an open spot market – energy, FCAS? Or through a bilateral contracting approach – SRAS?
• How do these services link to energy? Can they be subject to marginal pricing?
• Are there other links between the services? Can parties “value stack”?
• Is there a risk of localised market power?
Voluntary or mandated services
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In deciding whether to mandate or procure a service voluntarily:
Mandated: services that must be provided by all parties:
• Generator performance standard requirements like voltage / frequency withstand
• A risk of over procurement, and therefore costs for consumers
Voluntary: services that can be provided by some parties:
• System restart services – not all generators need to provide this service
• Upcoming rule changes related to system restart services will consider these issues
• Potential risk of under-procurement, but reduced risk of overbuild
Both voluntary and mandatory elements could co-exist for some services.
What are these services needed for?
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We also need to be clear on what these services are needed for:
• to support the system during normal operation
• to support the system during contingency events
• to deal with non-credible / high impact low probability events
• to restore the system, following a major supply disruption
Both AEMO and the AEMC have a role to play in development of new services:
AEMO needs to define what the system needs, and then the AEMC
collaboratively develops frameworks for how these services should be
procured.
What services can large scale energy storage offer?
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Source: ABB presentation to ARENA knowledge sharing forum, sourced from escri-SA.com.au
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Over to you
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• Talking to people is key to what we do
• We are always seeking input from industry, consumers, government, other market
bodies…
• Anyone can propose a rule change –
• if you think something in the NER needs to change, put in a rule change request
• We are happy to review potential requests, and help people who are considering
submitting a rule change request by talking through the process
• The door is always open, the phone is always on
• 02 8296 7800