Transcript Plantilla presentaciones IIT

INSTITUTO DE INVESTIGACIÓN TECNOLÓGICA
Novel market designs & KPIs
Stakeholder Kick-off Workshop, IEE-Market4RES
Brussels, 2014-04-28
Luis Olmos , Pablo Rodilla, Pablo Frías, Camila Fernandes
Need for this task and main objectives
•
•
The deployment of large amounts of RES generation must be
compatible with the integration of European electricity markets
This requires implementing some market developments not
considered in the European Target Model, which are aimed at:
–
–
–
•
Then, WP3 aims to:
–
–
•
Encouraging enough firm generation capacity to back-up RES-E
generation
Allowing new generation to be installed where it is more efficient
Increase the flexibility of the system to adapt to changes in operation
imposed by RES-G
1) Identify main market developments that are pending and main
design options for them
2) Provide indicators able to measure the performance of market
design options in achieving the aforementioned objectives
Interaction with stakeholders is central to success
Novel market designs & KPIs - Luis Olmos
Market4RES Kick-off Stakeholder Workshop, April 28. 2014
2
WP3 in Market4RES
WS1: Short term objectives (2016 - 2020)
WP4
Appropriate new market
instruments for RES-E to
meet
the 20/20/20 targets
WP2
Opportunities, challenges
and risks for RES-E in a
European integrated
electricity market with
full target model
implementation
WP3
WP6.1
WS1:
Implementation
Target model
WP6.2
WS2:
Implementation
Novel designs
Novel market designs &
KPIs
Short term markets
WS2: Long term objectives (post 2020 ; 2030-2050)
WP5
Modeling of electricity
market design &
Quantitative
evaluation of policies for
post 2020 RES-E targets
WP6.3
WS2:
Implementation
Novel designs
Long term markets
Novel market designs & KPIs - Luis Olmos
Market4RES Kick-off Stakeholder Workshop, April 28. 2014
3
Structure of WP3: main tasks
•
Market developments proposed are classified according to the
time frame of market operation they are relevant to:
–
–
•
Once market design options to analyze have been identified, we
turn on to measuring the performance of the former
–
•
Task 1: Market developments affecting the design of long-term
markets
Task 2: Market developments affecting the design of short-term
markets
Task 3: Assessment of market options (KPIs)
Analyses are to be performed in close cooperation with
stakeholders
–
Task 4: WP3 expert workshop and follow-up consultation event
Novel market designs & KPIs - Luis Olmos
Market4RES Kick-off Stakeholder Workshop, April 28. 2014
4
Work package 3 task description
Task 3.1: Long-term markets (CRM)
•
Capacity Remuneration Mechanisms (CRM) are here to stay
–
–
•
Objective of this task
–
•
After decades of strong opposition, several European countries are
now implementing some kind of CRM
National flawed and uncoordinated designs can impede to seize all
the opportunities that cross-border electricity exchanges can offer
How to further develop CRM national designs to enhance regional
electricity market performance
Divided in three subtasks
–
–
–
3.1.1 - General design principles of CRMs
3.1.2 - Participation of RES-E in CRMs
3.1.3 - Cross-border trading of capacity
Novel market designs & KPIs - Luis Olmos
Market4RES Kick-off Stakeholder Workshop, April 28. 2014
5
Work package 3 task description
Task 3.1: Long-term markets (CRM)
•
3.1.1 - General design principles of CRMs
Identify the most relevant design elements
– Define a reference CRM design
– How to deal with a context of massive penetration of RES-E
• The role of flexibility
• The role of demand response
–
•
3.1.2 - Participation of RES-E in CRMs
–
–
•
Evaluate the potential participation of RES-E in CRMs
How to evaluate the contribution of RES-E
3.1.3 - Cross-border trading of capacity
–
–
One of the hot topics as regards the Internal Electricity Market
How to ensure that no barriers to cross-border trading exist
Novel market designs & KPIs - Luis Olmos
Market4RES Kick-off Stakeholder Workshop, April 28. 2014
6
Work package 3 task description
Task 3.2: Short-term markets
•
Main pending developments related to the need to:
–
–
–
•
3.2.1 – Representation of the network
–
–
–
•
Better represent operation constraints;
Provide more flexibility;
Allow the participation of RES-G and L
Concerns the granularity level of the network model considered
The network model should allow the representation of congestion
occurring in the grid… while keeping it a simple as possible
Options that can be considered include nodal pricing, zonal pricing,
hybrid zonal pricing
3.2.2 – Timing of short term markets
–
–
Coping with uncertainty introduced by RES generation requires
getting markets closer to real time
Options are: complementing or replacing day-ahead with intraday or
close-to-real-time markets, or hybrid solutions
Novel market designs & KPIs - Luis Olmos
Market4RES Kick-off Stakeholder Workshop, April 28. 2014
7
Work package 3 task description
Task 3.2: Short-term markets
•
3.2.1 – Bidding protocols
–
–
•
Trade-off between the level of flexibility of bids, and therefore
dispatch efficiency, and the complexity of the dispatch algorithm
Range of options from simple constraints like minimum revenues or
block bids, to very sophisticated ones able to reproduce the unit
commitment problem
3.2.2 – Participation of RES-E generators and demand in shortterm markets
Participation in energy markets:
• Imbalance settlement design
• Impact on balancing requirements
• Appropriate design of intraday markets
– Participation in AASS markets
• Current rules preventing RES-G and L from participating in markets
• Definition of operation situations where provision of AASS is justified
–
Novel market designs & KPIs - Luis Olmos
Market4RES Kick-off Stakeholder Workshop, April 28. 2014
8
Work package 3 task description
Task 3.3: Definition of KPIs
Measuring the performance of proposed market developments is
needed to choose the most appropriate options
 KPIs must be defined
• KPIs can be classified according to the challenge they relate to
• Thus, KPIs that may be considered could include:
•
–
–
–
–
–
Attracting generation capacity and its availability: fuel security; shortterm peak demand security; long-term generation adequacy; etc.
Integration and well functioning of the market: trading volume and
market prices
Increasing market flexibility: Level of load balancing; Ramp rates of
residual demand; Predictability of renewable output
Cost reflectivity of price zones: PTDFs of congested line w.r.t. intrazonal transactions; Homogeneity of nodal prices within price zones
Profitability of RES-E generation: level of interaction of market with
ETS
Novel market designs & KPIs - Luis Olmos
Market4RES Kick-off Stakeholder Workshop, April 28. 2014
9
Work package 3 task description
Task 3.4: Expert workshop and consultation
•
Once options to address deficiencies of the TM are identified,
stakeholders will be consulted on:
–
–
•
whether these are the most promising design options
whether performance indicators proposed to assess them are
appropriate
Consultation will take place through two channels:
–
Expert workshop
BRUSSELS
MARCH
2015
–
Consultation process: a consultation document will be addressed to
market agents, TSOs, and regulators EUROPE
MAY
2015
–
Feedback to be used to fine-tune designs and KPIs considered
Novel market designs & KPIs - Luis Olmos
Market4RES Kick-off Stakeholder Workshop, April 28. 2014
10
Novel market designs & KPIs