BEST: Bioenergy resources (CHP) providing energy system flexibility. Juha Haakana

BIOENERGY RESOURCES (CHP)

PROVIDING ENERGY SYSTEM

FLEXIBILITY

BEST WP1 seminar

Tuesday, November 29, 2016

Juha Haakana, Lappeenranta University of Technology

Electricity Market + CO2-price

Efficient operation of system Sustainability Security

Renewable based production

and subsidies

???

2

Renewables, security of supply and efficiency

Solar power prices have dropped fast

Prices in Germany

Source: Fraunhofer ISE ”Recent Facts about

Photovoltaics in Germany “

Source: Antti Kosonen

1.4 1.8 2.2 2.8 3.9 5.3 6.9 9.415.8

23.2

40.0

69.7

100.5

138.9

179.4

257.0

0.0

50.0

100.0

150.0

200.0

250.0

300.0

Glo

ba

l ca

pa

city o

f so

lar

po

we

r syste

ms [

GW

]

Source: cleantechnica .com

Global solar capacity [GW]


Efficient operation of system Sustainability Security


and subsidies

Shorter operation times,

different running ranking,

worse economics

More renewable based production,

improved sustainability

More uncontrollable renewable

based production having high

output variation,

new challenges in intermittency,

lack of controllable production,

lack of inertia

4


0

10

20

30

40

50

60

70

80

90

100

Jan

-04

Sep

-04

May

-05

Jan

-06

Sep

-06

May

-07

Jan

-08

Sep

-08

May

-09

Jan

-10

Sep

-10

May

-11

Jan

-12

Sep

-12

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-13

Jan

-14

Sep

-14

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-15

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-16

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-16

Fin

nis

h m

on

thly

ave

rage

Els

po

t p

rice

€

/Mw

h

Electricity pricing

System price €/MWh

CHP is often on the edge

Source:

Nord Pool

Electrical power system frequency

Frequency deviation has

increased considerably between

2008 and 2016

Fre

qu

en

cy

[Hz]

Deadband


Efficient operation of system Sustainability Security of supply


and subsidies

Storages Demand responseControllable

productionNew transmission lines

How to solve the problem

?

When ? How? Profitability? Acceptability?

XShorter operation times,

different running ranking,

worse economics

More uncontrollable renewable

based production having high

output variation, new challenges

in intermittency, lack of

controllable production, lack of

inertia

More renewable based

production, excellent

sustainability

Low price of

electricity –

incentives for

investments ?

Capacity Market?

Payments of readiness to produce electricity or reduce consumption

Role of CHP


Heat market

Electricity markets

• Day-ahead market Elspot (13:00, 1 MW)

• Intraday market (one hour before delivery, 1 MW)

• Reserve markets

• FCR-N (Frequency containment reserve - normal),

(hourly market 18:00) up and down regulation (0.1 MW)

• FCR-D (Frequency containment reserve - disturbance),

(hourly market 18:00) up regulation (1 MW)

• FRR-A (Frequency restoration reserve - automatic),

(hourly market 17:00) up and down regulation (5 MW)

• FRR-M (Frequency restoration reserve - manual)

Traditional markets

New business: Reserve markets

Source: Fingrid

Participation in new energy market sectors

Electricity markets

Role of CHP in future power system

• CHP has capability to respond fast in power regulation

demand

• Electricity prices in spot markets are relatively low

profitability to operate is poor New business

• Finnish power production capacity 16.4 GW (2016)

• Now CHP 7 GW (bio CHP 2 GW)

Regulation of CHP plant output power

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

No turbinebypass,

no reserveparticipation

Partial turbinebypass,

no powerregulation

No turbinebypass,

electricity upregulation

Full turbinebypass,

electricity downregulation

Heat Heat deficit: Electricity up regulation

Electricity Heat surplus: Electricity down regulation

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

No turbinebypass,



no powerregulation

No turbinebypass,


Full turbinebypass,


Heat Heat deficit: Electricity up regulation

Electricity Heat surplus: Electricity down regulation

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

No turbinebypass,



no powerregulation

No turbinebypass,


Full turbinebypass,


Electricity

Heat deficit: Electricity upregulation

Heat surplus: Electricitydown regulation

Heat

Traditional, no

reserve markets

Reserve market participation

So

ldh

eat

ener

gu

y

So

ldh

eat

ener

gy

So

ldel

ectr

ica

l

ener

gy

Sold

electrical

energy

Hea

tE

lect

rica

lp

ow

er

Hea

t

Ele

ctri

city

pro

du

ctio

nca

paci

ty

So

ld

elec

tric

al

rese

rve

cap

aci

ty

Ou

tpu

t (h

eat

+ e

lect

rici

ty)

Case example

Heat market

Electricity markets

• Day-ahead market Elspot (13:00, 1 MW)

• Intraday market (one hour before delivery, 1 MW)

• Reserve markets

• FCR-N (Frequency containment reserve - normal),

(hourly market 18:00) up and down regulation (0.1 MW)

• FCR-D (Frequency containment reserve - disturbance),

(hourly market 18:00) up regulation (1 MW)

Studied markets Data of electricity markets

available 2009-2016

Source: Fingrid

Participation in new energy market sectors

Case study: simulation of actual CHP

power plant

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Hourl

y r

even

ues

€/h

Heat Elspot FCR-N FCR-D

Profitability of participation in reserve

markets: Case Järvenpää Fortum

2015:

+ 20% profit

Comparison of

two cases:

Flexibility markets

would have a

significant effect on

operational profit

Year 2015

Reserve market Without reserve market

Revenue total 15 802 000 € 14 877 000 €

Heat 12 162 000 € 12 162 000 €

Elspot 1 892 000 € 2 628 000 €

Elbas 120 000 € 87 000 €

FCR-N 645 000 € 0 €

FCR-D 983 000 € 0 €

Costs 7 990 000 € 8 366 000 €

Fuel consumption 7 990 000 € 8 366 000 €

Profit 7 812 000 € 6 511 000 €

Year 2014:

+ 15% profit

Conclusions

1. Energy system faces wide challenges in future

New ways to operate energy system

New business opportunities

2. CHP power plants are interesting player in energy system

• Technology is already there

3. Study indicates feasibility for CHP plant participation in

reserve markets

+ 15% - 20% annual profit

THANK YOU!

Contact:

Juha Haakana, [email protected]

BEST: Bioenergy resources (CHP) providing energy system flexibility. Juha Haakana

Environment

Transcript of BEST: Bioenergy resources (CHP) providing energy system flexibility. Juha Haakana