Micro and local power markets

276 Pages·2019·7.19 MB·English

by  Sumper, Andreas

MicroandLocalPowerMarkets
Micro and Local Power Markets
Editedby
AndreasSumper
UniversitatPolitècnicadeCatalunya
Barcelona,Spain
Thiseditionfirstpublished2019
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LibraryofCongressCataloging-in-PublicationData
Names:Sumper,Andreas,editor.
Title:Microandlocalpowermarkets/editedbyAndreasSumper.
Description:Firstedition.|Hoboken,NJ:JohnWiley&Sons,Inc.,[2019]|
Includesbibliographicalreferencesandindex.|
Identifiers:LCCN2019003712(print)|LCCN2019004377(ebook)|ISBN
9781119434566(AdobePDF)|ISBN9781119434542(ePub)|ISBN9781119434504
(hardcover)
Subjects:LCSH:Electricpower–Marketing.|Electricutilities.|Microgrids
(Smartpowergrids)|Energypolicy.|Interconnectedelectricutility
systems.
Classification:LCCHD9685.A2(ebook)|LCCHD9685.A2M4842019(print)|DDC
333.793/20688–dc23
LCrecordavailableathttps://lccn.loc.gov/2019003712
CoverDesign:Wiley
CoverImages:Foreground:CourtesyofMrs.ÍngridMunné,Background:©Pobytov/GettyImages
Setin10/12ptWarnockProbySPiGlobal,Chennai,India
10 9 8 7 6 5 4 3 2 1
v
Contents
ListofContributors xi
Foreword xiii
Preface xv
1 PowerMarketFundamentals 1
ÍngridMunné-Collado,PolOlivella-RosellandAndreasSumper
1.1 Introduction 1
1.2 BasicDesignofPowerMarkets 5
1.2.1 Organization 5
1.2.1.1 Monopoly 5
1.2.1.2 PurchasingAgency 5
1.2.1.3 WholesaleMarket 5
1.2.1.4 RetailCompetition 7
1.2.2 BilateralContractsandAuctions 7
1.2.3 Clearing 10
1.2.4 SettlementorPricing 10
1.2.5 Example 11
1.3 MechanismforAuctions 13
1.3.1 WhyAuctionsinEnergyMarkets? 13
1.3.2 AuctionBasics 13
1.3.2.1 TheRevenueEquivalenceTheorem 14
1.3.3 TypesofAuctions 15
1.3.3.1 TheEnglishorAscending-BidAuction 15
1.3.3.2 TheDutchorDescending-BidAuction 15
1.3.3.3 TheFirst-PriceSealed-BidAuction 15
1.3.3.4 TheSecond-PriceSealed-BidAuction 16
1.3.4 AuctionMechanismsAppliedtoElectricityProducts 16
1.3.4.1 Sealed-BidAuctions 16
vi Contents
1.3.4.2 DescendingClockAuction 17
1.3.4.3 HybridAuctions 18
1.3.4.4 CombinatorialAuctions 19
1.3.4.5 Two-SidedAuctionMechanisms 19
1.3.5 AuctionCharacteristicsinPowerMarkets 19
1.3.6 AuctionDesign 20
1.3.6.1 ObjectivesEstablishment 20
1.3.6.2 ObjectIdentification 20
1.3.6.3 ParticipationEncouragement 21
1.3.6.4 VulnerabilitiesintheAuctionMechanism 21
1.3.7 Example 23
1.4 MarketsforFutures,Energy,andBalancing 27
1.4.1 ForwardandFuturesMarkets 27
1.4.2 SpotMarkets 28
1.4.3 Day-AheadMarkets 29
1.4.4 IntradayMarkets 30
1.4.5 BalancingMarkets 32
1.5 ConclusionsandFurtherReading 33
References 34
2 LocalandMicroPowerMarkets 37
ÍngridMunné-Collado,EduardBullich-Massagué,
MònicaAragüés-PeñalbaandPolOlivella-Rosell
2.1 Introduction 37
2.2 WhyLocalandMicro? 38
2.3 TheEvolutionofPowerSystems 40
2.4 IntroductiontoMicrogrids 41
2.4.1 MicrogridDefinition 41
2.4.2 MicrogridComponents 43
2.4.3 MicrogridOperationModes 45
2.4.3.1 MicrogridConnectedtoanExternalDistributionGrid 45
2.4.3.2 MicrogridConnectedtoAnotherMicrogrid 46
2.4.3.3 IsolatedMicrogrid 48
2.5 LocalandMicroPowerMarketConcepts 49
2.5.1 LocalandMicroPowerMarketDefinitions 49
2.5.2 ComparativeAnalysis 52
2.6 LocalMarketDesign 59
2.6.1 InvolvedAgentsandStakeholders 60
2.6.2 Approach 63
2.6.2.1 Centralized(Pool-based)Approach 64
Contents vii
2.6.2.2 Peer-To-Peer 66
2.6.3 Services 68
2.6.3.1 Energy 68
2.6.3.2 Flexibility 70
2.6.4 LocalMarketServicesandApproachReview 77
2.6.5 LocalMarketInteraction 81
2.7 ConclusionsandDiscussion 84
References 85
3 MicroMarketsinMicrogrids 97
BerntBremdalandIlianaIlieva
3.1 Introduction 97
3.2 BasicDefinitionsofMicroMarketFunctionsin
Microgrids 99
3.2.1 IslandModeVersusConnectedMode 99
3.2.2 MarketApproachforResourceAllocations 101
3.2.3 TheImportanceofOwnership,BusinessFocus,and
Responsibilities 102
3.2.4 CapacityDesignandPhysicalLaws 105
3.2.5 ResourceEfficiency 105
3.2.6 PrerequisitesforaLiberalMarket 108
3.2.7 BasicOrganizationalStructures 109
3.2.8 SingleSeller–SingleBuyer 110
3.2.9 MultipleSellers–SingleBuyer 110
3.2.10 SingleSeller–MultipleBuyers 112
3.2.11 MultipleSellers–MultipleBuyers 112
3.3 OperationalCharacteristicsofMicrogrid-basedMicro
Markets 113
3.3.1 TypesofMicrogrid 114
3.3.2 DegreeofConnectivitytoMainSupply 114
3.3.3 Geography 119
3.3.4 Ownership 120
3.3.5 BusinessModels 120
3.3.6 PhysicalControlandCommunicationSystem 121
3.3.7 ManagementoftheMicrogrid 122
3.3.8 NumberofIndependentBuyersandSellers 123
3.3.9 TypeofSupply 123
3.3.10 TypeofLoads 124
3.3.11 StorageCapacityandReservePower 124
3.3.12 ExchangeandTradeConcepts 125
viii Contents
3.3.13 PricingandSettlement 126
3.3.14 ContractTypes 127
3.3.15 MarketEfficiencyandEconomicWelfare
Considerations 129
3.3.16 TheRoleofICT 129
3.4 MarketModels 130
3.4.1 Introduction 130
3.4.2 Model1:CentralControlandOptimization 130
3.4.3 Model2:CentralControl–DistributedDecision
Making 132
3.4.4 Model3:CentralMarketManagementandDouble
Auction 136
3.4.5 Model4:DistributedControl–Peer-to-PeerTrade 142
3.4.6 Model5:Non-competitiveAllocationofEnergy 150
3.5 Conclusions 158
References 160
4 CoupledLocalPowerMarkets 165
PolOlivella-Rosell,ShahabShariatTorbaghanand
MadeleineGibescu
4.1 Introduction 165
4.2 LocalandWholesaleMarketCoupling 167
4.2.1 FlexibilityDefinition 169
4.2.2 ServicesandProductsTraded 171
4.2.3 MarketParticipants 172
4.2.3.1 TheLocalMarketOperator 173
4.2.3.2 BRPandLocalMarkets 175
4.2.3.3 DSOandLocalMarkets 176
4.2.3.4 ProsumersandLocalMarkets 176
4.2.4 LFMInteractionTimeline 177
4.3 LocalMarketClearingMechanisminCoupled
Markets 178
4.3.1 Day-aheadScheduling 180
4.3.2 IntradayScheduling 183
4.3.3 QuarterlyScheduling 186
4.4 ConclusionsandDiscussion 186
References 188
Contents ix
5 DigitalBusinessModelsforLocalandMicroPower
Markets 193
EmmanuelleReuter,MoritzLoockandJuliaCousse
5.1 WhatareDigitalBusinessModels? 193
5.1.1 DigitalTechnologyEnablesValueandMoneyFlowtobe
Decoupled 194
5.1.2 ProsumptionasCo-creation 194
5.2 LocalPowerMarketsandDigitalBusinessModels 196
5.2.1 DecentralizationandLocalPowerMarkets 196
5.2.2 DigitalizationandtheRiseofPlatformBusiness
Models 199
5.2.3 CaseExamplesofPlatformBusinessModels 201
5.2.3.1 CaseExample1:NextKraftwerke 202
5.2.3.2 CaseExample2:LichtBlick 202
5.2.3.3 CaseExample3:Piclo 202
5.2.3.4 CaseExample4:Change38 203
5.3 TheEMPOWERPlatformandBusinessModels 204
5.4 SocialAcceptanceofLocalPowerMarkets 206
5.4.1 Citizen-levelAcceptance 207
5.4.1.1 KeyDriversforParticipation 208
5.4.1.2 KeyMeansforParticipation 209
5.4.1.3 KeyBarriersforParticipation 212
5.4.2 Utility-LevelAcceptance 213
5.4.3 Cooperative-LevelAcceptance 215
5.5 Conclusion 219
References 220
6 RegulationofMicroandLocalPowerMarkets 223
DirkKuiken
6.1 PowerMarketRegulation 223
6.1.1 Definition:WhatandWhy 224
6.1.2 Development 225
6.1.3 Regulators 227
6.1.4 Forms,Instruments,andTypes 228
6.2 CommonPowerMarketRegulation 230
6.2.1 Generation(Production) 231
6.2.2 Networks(TransportationandDistribution) 232
x Contents
6.2.3 Trade 233
6.2.4 Consumption 234
6.3 RegulationofMicroandLocalPowerMarkets 235
6.3.1 Definition 237
6.3.2 IsolatedvsInterconnectedMarkets 238
6.3.2.1 IsolatedMarkets 239
6.3.2.2 InterconnectedMarkets 241
6.3.3 GeneralRequirements 242
6.3.4 ExistingLegalFrameworks 243
6.4 TradeSettings 245
6.4.1 BilateralAgreements 245
6.4.1.1 Parties 245
6.4.1.2 Services 246
6.4.1.3 TermsandConditions 247
6.4.2 MarketPlatforms 249
6.4.2.1 MarketOperator 249
6.4.2.2 MarketRules 249
6.5 FurtherDiscussion 253
Acknowledgements 254
References 255
Index 261
xi
ListofContributors
ÍngridMunné-Collado MònicaAragüés-Peñalba
CITCEA-UPC CITCEA-UPC
UniversitatPolitècnicade UniversitatPolitècnicade
Catalunya Catalunya
Barcelona Barcelona
Spain Spain
PolOlivella-Rosell BerntBremdal
CITCEA-UPC UniversityofTromsø
UniversitatPolitècnicade Norway
Catalunya
and
Barcelona
Spain SmartInnovationNorway
Halden
Norway
AndreasSumper
CITCEA-UPC
UniversitatPolitècnicade IlianaIlieva
Catalunya SmartInnovationNorway
Barcelona Halden
Spain Norway
EduardBullich-Massagué ShahabShariatTorbaghan
CITCEA-UPC UnitEnergyTechnology
UniversitatPolitècnicade VITONV/Energyville
Catalunya Belgium
Barcelona
Spain