Red Eléctrica de España - National Association of Regulatory Utility

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Transcript Red Eléctrica de España - National Association of Regulatory Utility

Opening session: the Spanish TSO experience on renewable integration

March 2011 Dirección de Operación

Contents

Spanish TSO presentation

Overview of the Spanish electric sector

Current regulatory framework of Spanish renewable units

Challenges

RED ELÉCTRICA DE

Who is Red Eléctrica?

Red Eléctrica de España (REE) is the Spanish transmission system operator (TSO) REE is operating the mainland system and the island systems REE was the first company in the world dedicated exclusively to power transmission and the operation of electrical systems.

RED ELÉCTRICA DE ESPAÑA

Red Eléctrica de España (REE): Mission and principles.

Operates the system to guarantee the power supply.

Since 2006 also in the extra-peninsular systems

Designs, builds and maintains the transmission network.

Since 2007 as exclusive transmission company SHARE CAPITAL (Aprox.): SEPI 20 %

FREE FLOAT 80%

Lines Subst.

Transmission Grid Main magnitudes (SPPS) 400 kV [km ct]

220 kV [km ct] Transformers 400/X kV [MVA]

220 & 400 kV [nº bays] Closure 2010 18,576 17,221 69,059 > 3,500

SEPI: Spanish Stated Owned Holding Company 

It has proved fundamental for the fast and secure implementation of electricity market and integration of RES 4

RED ELÉCTRICA DE ESPAÑA

Spanish transmission system

    REE: Spanish Transmission System Operator.

34000 km of lines and 60000 MW of transforming capacity.

Spanish peak demands 45 GW and off-peak demands of 19-25 GW.

Planned reinforcements 2009-2016, partly due to RES integration:

Lines and cables Lines and cables Whole planned infrastructure Total Total

12656 12656 8308 8308

400kV 400kV

7488 3850

220kV 220kV Specific infrastructure planned to integrate RES Total Total

4465 1730 4465 1730

400kV 400kV 220kV 220kV

New bays New bays Extension of substations

Transformers

Additional capacity [MVA]

Transformers

[MVAR]

Reactances and Capacitors

[MVAR] 3476 399 3476 399 405 1163 1163 106 76 2313 2313 39 39 59 20 20 18 19 405

Total

76 329

400 / 220 kV 400 / 132 kV

59

Total

18 41

400 / 220 kV 400 / 132 kV Total

68540 68540 52450 16090

400 / 220 kV 400 / 132 kV Total

3900 52450

Total

16090 2800 5305 5305 3500 1805

400 / 220 kV 400 / 132 kV

3500

220kV

1100 1805

Total

3900

400kV

2800

220kV

1100 Highlighted lines correspond to planned lines from 2008-2016.

RED ELÉCTRICA DE

Spanish inteconnection capacity

PO

ES = 1,5% FR

ES =1,5%

30 25 20 15 10 5 0

Interconnection capacity compared to installed capacity

50 45 40 35

UE 10%

Potencia Inst.

ESPAÑA =

94

604

MW

MA

ES = 0,6%

Limited interconnection capacity with France, security link with the European Interconnected system. In practice almost an “electrical island”.

RED ELÉCTRICA DE ESPAÑA

Spanish energy context

The 20/20/20 European Strategy is the key driver of the Spanish energy model change 20 / 20 / 20 Strategy 20% of final energy coming from renewables 20% reduction in GHG emissions 20% reduction in primary energy consumption

The development of renewable energy sources and the reduction in consumption imply a reduction in GHG emissions.

Renewable energy integration into the electric grid produces an improvement in the system efficiency.

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RED ELÉCTRICA DE ESPAÑA

Installed capacity January 2011

Solar CSP 0,7% Mini-hydro 2,1% Solar PV 3,8% Wind 20,9% Biomass 0,7% Cogeneration 6,2% Hydro 17,5% Waste Treat.

1,3% Coal 11,3% Nuclear 7,8% Combined cycle 25,8% Fuel-Gas 1,9% Technology Hydro-power Nuclear Coal Fuel-Gas Combined cycles Total (ordinary regime) Wind power generation Solar PV Solar CSP Biomass Special regime hydro Cogeneration Waste treatment Total (special regime) Total MW 16 657 7 .455

10.789

1 849 24.641

61.391

19976 3.634

630 684 1 965 5 946 1 204 33.791

95.430

% 17.5

7.8

11.3

1.9

25.9

64.3

20.9

3.8

0.7

0.7

2.1

6.2

1.3

35.7

RED ELÉCTRICA DE ESPAÑA

Demand supply 2010 260.230 GWh = 189.071 Net Ordinary Regime + 90.513 Net Special Regime -4.412 Hydro-pump storage -8.338 International exchanges

Wind 15,6% Solar 2,4% Small Hydro 2,40% CHP and other RES 12,8% Hydro-power 14,0% Nuclear 21,6% Combined cycle 23,0% Coal 7,6% Fuel-Gas 0,6% Special Regulation Regime Renewable: Non Renewable: Minihydro Biomass Cogeneration Coal Wind Industrial waste Refinery gas Urban waste Solar Fuel - Gas oil Natural gas

RED ELÉCTRICA DE ESPAÑA

Present wind power capacity and evolution

kW/km 2 Installed Wind power generation evolution 1996-2010

22.000

20.000

18.000

16.000

14.000

12.000

10.000

8.000

6.000

4.000

2.000

0

183 428 798 1.525

2.298

3.442

4.927

6.138

8.304

9.653

11.099

15.873

13.908

18.390

19.976

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Installed Wind Capacity January 2011

Renewable Energies’ Plan for Spain (August 2005): ~20,000 MW by the year 2010.

Official Network Planning for 2016 contemplates ~29,000 MW.

Renewable Energies Plan for Spain 2010-2020 ~38,000 MW.

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RED ELÉCTRICA DE ESPAÑA

Development of the Spain-France Interconnection: A priority Spain –and Portugal- form a peninsula, also electrically, with weak electrical interconnections with the rest of European Union.

-

Development of Spain-France Interconnection with a new 2 x 1000 MW DC underground line

-

1st step for objective of 4.000 MW of commercial capacity

-

Necessary for building the IEM

-

Fundamental for RES integration in Spain

-

(& Portugal) 11

RED ELÉCTRICA DE ESPAÑA

Current regulation: RD 661/2007. Rights and Duties

Rights

   To deliver energy to the grid through the distribution company or to sell it in the market receiving regulated retribution (regulated tariff or premium) Priority of access to the grids.

To deliver all the produced energy 

Duties

 To deliver energy in suitable conditions which doesn’t cause disruptions in the system.

  To be adhered to a generation control center. (Power Plants > 10 MW). This control center will be the intermediary and speaker with the System Operator To carry out the rule about avoiding the problem of tension holes 1 . It’s a condition to receive the regulated tariff or premium.

(1) Operation Procedure 12.3. This is a problem which occurred with the old wind machines.

RED ELÉCTRICA DE ESPAÑA

Economic Regime in current regulation: RD 661/2007

   

Possibilities

 To deliver the energy to transmission or distribution network with a regulated tariff (c €kWh)  To sell the energy in the market: Retribution= Market price + premium

Regulated tariff

 Fixed amount of money for all periods for each type of energy  Hydroelectric, biomass, biogas: they could have hourly discrimination.

Market : Retribution= Reference Price + Premium

 Cup and Floor are established for the total amount of price+ premium  Premium is variable: Total amount to receive > Cup and > Floor.

Power Plants >50MW must go the market

RED ELÉCTRICA DE ESPAÑA

Market integration of wind energy

140 120 100 80 60 40 20 0 0 10 20 30 40 50 60 70

Marginal Market Price ( €/MWh)

80 90 100 110 120 Wind Market Price ( €/MWh) Wind Bonus ( €/MWh) Fixed tariff price 

Possibility of accessing the daily wholesale market and updating the schedules in the intra-day markets according to new production forecasts.

As for any type of generation, agents are penalized for their deviations and pay for the balancing energy needed to counteract their deviation.

Reserve bands are calculated by the TSO and paid by the final consumers.

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 RED ELÉCTRICA DE ESPAÑA

RD 661/2007. Economic Regime

For renewable energy there is a retribution table for the first 25 year and other for after.

c€/kWh

Wind Onshore Wind Offshore

Regulated Tariff

7.8183

Reference Premium

3.1273

9.0004

Superior

9.0692

16.9494

Limits Inferior

7.6098

After 25 years c€/kWh

Wind Onshore Wind Offshore

Regulated Tariff

6.5341

For photovoltaic it isn’t possible to go to the market, there is only tariffs: Fotovoltaic c€/kWh

<100 kW 47.0181

100 kW-10 MW 10-50 MW 44.5751

24.5311

RED ELÉCTRICA DE ESPAÑA

Recent modifications of regulation for SRG

Recently, National regulation oriented to control of generation to be connected per year, securing economic and technical sustainability

RD1578/2008 for Solar FV, extending RD661 objectives with quotas of 500-400 MW per year with progressive reduction of tariffs

emphasis on roof plants over floor plants

RDL6/2009 for the rest of SRG, establishing quotas per year for plants to be commissioned (upto ≈ 2,5 GW Solar Thermal in 2013; upto ≈ 23 GW WP in 2012), demonstrating some pre-requisites:

Access and connection authorization issued by REE or distribution company

Administrative authorization for power plants > 100 kW

 

License for Commissioning Deposit of a bank guarantee (for wind: 20 €/kW; for Solar Thermal: 100€/kW)

Financial resources at least for 50% of the total

Purchase -or contract- at least for 50% of the equipment

Authorisation for gas access and water supply (when applicable)

RED ELÉCTRICA DE ESPAÑA

Photovoltaic updatings. RD 1578/2008

Installed power: It will be updated every year

 The Register of Pre-establishment of retribution is created to enter all of the requested power plants.

 A quota of installed power is established for the first year and it will be updated. First year:  Facades: 267 MW  Floor : 133 MW 

Retribution: c€/kWh

Type I Type II

RD 1578/2008

<20 kW 34 >20 kW All 32 32

RD 661/2007

<100 kW 100 kW-10 MW 10-50 MW 47.0181

44.5751

24.5311

RED ELÉCTRICA DE ESPAÑA

Development of Special Regime Regulation

1980 Act 82/1980, determines, for the first time, distributors obligation of purchasing renewable energy at a regulated price for 1994 1998 2002 2004 R.D 2366/1994, establishes a new regulation for special regime R.D. 2818/1998, adequates special regime regulation to new Act 54/97, of electric power system R.D. 841/2002, regulates and incentives special regime participation in generation market R.D. 436/2004, merges all the existing regulationa and defines a new economical framework for special regimen 2007 2008 2009 R.D. 661/2007, updates economical and legal framework for special regime generation, including installed power goals R.D.1578/2008, modifies, reducing incentives and increasing requirementts, fotovoltaic energy regulation R.D.6/2009, creates a special registration mechanism in order to reach the objectives of installed power in an efficient way

RED ELÉCTRICA DE ESPAÑA

Payment of Technical Services

TECHNICAL CONSTRAINTS SECONDARY RESERVE Final demand depending on the metered energy (excepting pumping units and exports) SECONDARY ENERGY TERTIARY ENERGY DEVIATION MANAGEMENT Units which deviate from their programs UPWARD UNBALANCES (less consumption, more generation) DOWNWARD UMBALANCES (more consumption, less generation) IN FAVOUR OF THE SYSTEM Receive DMP Pay DMP IN OPOSSITION TO THE SYSTEM Receive minimum of:

DMP

Average price of DOWNWARD energy used (SR + TR + DM) Pay Maximum of:

DMP

Average price of UPWARD energy used (SR + TR + DM) Deficits and surpluses are paid by final demand proportionally to metered energy (excepting pumping units and exports)

RED ELÉCTRICA DE ESPAÑA

Influence of solar photovoltaic in system operation

 2% of the total energy demand in 2009.

 Present installed capacity: 3 392 MW.

 Reduced observability by the SO. Must be solved.

 Behavior in summer in accordance to demand requirements.

 In winter, peak demand is in the evening. No contribution.

 Connection to Transmission/Distribution: 2/98%

YEAR 2005 2006 2007 2008 2009 Source CNE SOLAR PV PRODUCTION (GWh)

40 103 466 2 477 5 347

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Integration of solar thermoelectric in system operation

 Present installed capacity 481 MW.

 In the short term: increase of  500 MW per year.

 Two technologies: parabolic trough and tower.

 Connection to Transmission/Distribution: 63/37%  Year 2007: first commercial solar thermoelectric plant installed (PS-10)  Installed capacity: 11 MW (as a part of the Solucar project with expected 300 MW en 2013).

 Generated energy in 2009 : 125 GWh.

 Planning 2010-2012: 500 MW per year of new installed capacity.

 Positive correlation with demand in summer.

Planta PS-10

 In winter molten salt storage and hybridation with natural gas allow production during the daily load peaks becoming mostly manageable generation.

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RED ELÉCTRICA DE ESPAÑA

Legal framework (I)

Definition of Special Regime

Law 54/1997

Article 27: Special regime of electricity generation Electricity generation activities shall be regarded as generation under the special regime system in the following cases whenever they are carried out from installations whose installed power is no greater than 50 MW :

Cogeneration or other forms of electricity generation associated with non-electricity operations, provided they involve high efficiency output

Whenever non-consumable renewable energies, biomass or biofuels of any type are used as primary energy, provided their holder does not engage in generation activities under the ordinary system

Whenever non-renewable waste is used as primary energy 22

 RED ELÉCTRICA DE ESPAÑA

Royal Decree 661/2007

Legal framework

Legal and economic framework for Special Regime production which includes:

Type of installations that can be considered as Special Regime

Procedure to include plants in the Special Regime Register

Rights and obligations of the Special Regime producers

Priority of dispatch over conventional generation

Market integration. Two options:

(II)

Regulated rate: Constant feed-in tariff per MWh produced

Selling the electricity on the electricity production market: price established in the day-ahead and intraday organised market (OMEL) or the price that has been freely negotiated by the owner or the installation representative (bilateral contract), complemented by a premium dependent on the technology of the installation.

Economic framework

Requirements to participate in the system adjustment services

Cost of deviations 23

RED ELÉCTRICA DE ESPAÑA

Economic Framework (I)

Art 24.1.a: Sell trough distributor or transport grid

Feed-in tariff

   

For some technologies (CHP, mini hydro, biomass…) depends on the periods they generate.

Reactive energy supplement

If P>=10MW units may receive instructions from the OS High efficiency supplement (for CHP) Supplement for voltage dip ride through capabilities (maximum period 5 years, until 31/12/2013) For wind only.

Art 24.1.b: Sell in the electricity energy production market

Price of the organized market

   

Premium:

 

For renewable energies: With upper and lower limits for the sum of the reference market price an the reference premium For non renewables: Fixed premium Reactive energy supplement

If P>=10MW may receive instructions from the operator of the system. High efficiency supplement (for CHP) Supplement for voltage dip ride through capabilities (maximum period 5 years, until 31/12/2013) For wind only.

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RED ELÉCTRICA DE ESPAÑA

Economic framework (II)

Art 24.1.a: Sell through distributor or transport grid

Directly or through a representative or trader Art 24.1.b: Sell in the electricity energy production market

Directly or through a representative or trader

 

Cost of deviations

 

If have the duty to have hourly measuring equipment: As established in PO 14.4

If not: exempt Participation in the system adjustment services

Mandatory ones: Such as “ Technical constraint management”

 

Cost of deviations

As established in PO 14.4

Participation in the system adjustment services

 

Mandatory ones: Such as “ Technical constraint management” Manageable installations may participate in optional services (subject to prior authorization by the administration and technical authorization by the SO) 25

RED ELÉCTRICA DE ESPAÑA

Challenges

The current high penetration of RES must be significantly increased due to ambitious national objectives (2020: 20% of E final

≈ 40% E electric )

19.975 MW*

38.000 MW**

> 3.500 MW*

8.367 MW**

630 MW*

5.079 MW**

Technical challenges motivated by particular features of new generation: Location far from load and sometimes grid Vulnerability to incidents(voltage dips) Primary energy: Lack of firmness and control * Power installed Dec 2010 ** NAP for 2020 submitted to EC in June10 (Under review)

Market/Regulatory changes

TSO management of new RES connections (queues mangement) and tests for more dispatchable resources

Technical Requirements (voltage dips, freq.

regulation, voltage control, …)