frankfurt (germany), 6-9 june 2011 gordon mckinstry – united kingdom – rif session 5 – paper...
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Frankfurt (Germany), 6-9 June 2011
Gordon McKinstry – United Kingdom – RIF Session 5 – Paper 1092
Comparison of the cost of electricity in a highly distributed energy future cell for feed-in tariffs and free market community aggregated trading of microgeneration
sourced electricity.
Gordon McKinstry, Stuart Galloway, Bruce Stephen
Department of Electronic & Electrical Engineering
University of Strathclyde
Glasgow, United Kingdom
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Frankfurt (Germany), 6-9 June 2011
Overview
Introduction Need for Research & Utilisation of DER Market Participation of Microgenerators Simulation Procedure Results Conclusion & Further Work
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Frankfurt (Germany), 6-9 June 2011
Introduction
Drivers for change supporting the HiDEF vision “Many sources, many loads, many market participants”
Decentralised energy system – 2025 & 2050
Research focused on participation through market design Large scale market reform Remuneration schemes support individuals or communities
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Frankfurt (Germany), 6-9 June 2011
Need for Research Increasing microgeneration increases market participation
Could a community of microgenerators drive down prices? Reduced demand resulting in expensive plant remaining off
Would existing feed-in tariffs be a better option? How much should be paid under FiT?
Is another option required altogether? Future Work
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Frankfurt (Germany), 6-9 June 2011
Market Participation of Microgenerators.
One body sells all community energy to market Reduce prices by stopping switch-in of peak plant. All energy must still be purchased from market.
Community takes Feed-In Tariff Energy consumed locally and deferral payments received. What level of FiT payment makes this attractive?
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Frankfurt (Germany), 6-9 June 2011
Test Network
Representative of intermediate HiDEF Cell One virtual power plant / negative load to represent FiT takers Aggregator modelled as first dispatched generator Modelled using agent-based learning techniques
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Frankfurt (Germany), 6-9 June 2011
Simulation Procedure – Selling To Market
Level of microgeneration sourced energy at bus 2 0 to 1 % peak demand in 0.1 % increments
Selling energy to market First dispatch generator of size described above Objective to limit expensive plant being switched-in
Simulation run for 50 days utilising agent learning
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Frankfurt (Germany), 6-9 June 2011
Simulation Procedure – Feed-In Tariffs Microgeneration now modelled as negative load
0 to 1 % peak demand in 0.1 % increments 0 to 200 % of MCP paid for FiT sourced energy.
Simulation run for 50 days with agent learning as before
Cost calculated on per-unit basis, as shown below
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Frankfurt (Germany), 6-9 June 2011
Results
Payment free FiT can reduce overall price paid Why invest without promise of return?
Increasing provision of DER reduces price per unit
Community VPP & FiT prices will ultimately converge
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Frankfurt (Germany), 6-9 June 2011
Results
Equilibrium points found FiT pays %MCP = Community VPP price paid
FiT paying more than MCP is unviable Increasing FiT qualifying participants makes aggregation more viable.
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Frankfurt (Germany), 6-9 June 2011
Discussions
No capital costs considered, only operational.
Ownership Feasibility of enforcing mass participation?
Technological Aggregation requires significant storage media development
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Frankfurt (Germany), 6-9 June 2011
Conclusion & Further Work
Community VPP schemes offer viable alternative to FiT
FiT schemes paying over 100 % MCP potentially very expensive
Research opportunities exist within Assessment of non per-unit schemes. The impacts of micro-scale storage on markets. The Impacts of macro-scale storage on markets.