Manuel Sánchez

Regulatory
recommendations for
the deployment of
flexibility
(SGTF-EG3 Report 2015)
Manuel Sánchez, Ph.D.
Team Leader Smart Grids
Directorate General for Energy
European Commission
Energy
Key issues for the deployment of flexibility
i. Why do we need flexibility? What is the consumers right to
sell flexibility? How to empower consumer and what will
consumer empowerment look like?
ii. What are the benefits and costs for stakeholders of
flexibility? How can this be realized? Which flexibility
market rules are required? Which are the regulatory
structures needed in order to achieve those market rules?
iii. Who may have to be incentivised and why?
iv. What recommendations can be issued?
Dr.-Ing. Manuel Sánchez Jiménez © European Commission 2015
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Flexibility, regulatory structure and incentives
Dr.-Ing. Manuel Sánchez Jiménez © European Commission 2015
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Possible relations and tasks
Prosumers
Generator
SUPPLY and
FLEXIBILITY
Supplier
FINANCIAL
ADJUSTMENT
MECHANISM
Commercial domain Supply
POWER
EXCHANGE
MARKET
BRP
INFORMATION
EXCHANGE
Aggregator
FLEXIBILITY
PURCHASE
CONTRACT
DISTRIBUTION
NETWORK CONSTRAINT
MANAGEMENT
DSO
GRID ACCESS &
GENERATION
MANAGEMENT
BRP
FLEXIBILITY
PROCUREMENT
BALANCING
MARKET and
ANCILLARY
SERVICES
TSO
MUTUAL EXCHANGE OF OPERATIONAL
AND CONTRACTUAL DATA
Dr.-Ing. Manuel Sánchez Jiménez © European Commission 2015
Commercial domain Flexibility
Regulated domain
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Recommendations
Consumer
•
•
•
•
Timely access to data
Clear framework for domestic customers
Secure communication infrastructure , services and utility-Telco synergies
Smart appliances for end users
Market
•
•
•
•
•
Assess the flexibility potential and maximise the value of flexibility
Equal access to electricity markets
Contractual arrangements
Financial adjustment mechanisms
Definition of balance responsibilities in a connection
Regulatory
•
•
•
•
•
Open and interoperable standards for interfaces
Standardised measurement methodology for flexibility
Communication and coordination for secure grid operation
Incentivise grid operators to enable and use flexibility
Improve price signals to incentivise consumer's response
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http://ec.europa.eu/energy/en
http://ec.europa.eu/energy/en/topics/markets-and-consumers/smart-gridsand-meters
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Challenges
CONSUMER
Clear framework for
protection and
rewards and Info and
clear benefits
MARKET
Integration of new actors
with access to wholesale
and balance markets
aggregator while take into
account BRP rules and
responsibilities
REGULATION
Transparent data
management to guarantee
new services: Smart
metering functionalities,
interoperability and
standards
Dynamic prices signal Fair commercial
to incentivise and
arrangements: cost,
smart appliances
benefits, symmetry, etc.
Incentives to network
operators: CAPEX/OPEX
Privacy and secure by Adjustments rules
design
Further DSO/TSO
cooperation: data
management, tasks and
network codes
Dr.-Ing. Manuel Sánchez Jiménez © European Commission 2015
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Consumers
RECOMMENDATION
WHAT
Timely access to data - Data management
while ensuring
- Right to receive
consumer privacy
metering with frequent
reading data
- Explicit consent for
access
Comparable, simply and
transparency services and
offers
Clear framework for
domestic customers
Additional protection to
vulnerable consumers
Dr.-Ing. Manuel Sánchez Jiménez © European Commission 2015
WHO
NRAs to put it in place
and set up recovery costs
NRAs and Industry to
accommodate
aggregation and dynamic
pricing
NRAs and consumer
agencies to
accommodate DSF
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Market
RECOMMENDATION
Flexibility potential and
maximise the value of
flexibility
Equal access to
electricity markets
Commercial
arrangements
Financial adjustment
mechanisms
Definition of Balance
Responsibility in a
connection
WHAT
- Potential for type of
consumer
- Cost/Benefit Analysis
WHO
MSs and NRAs to ensure
the max. value of DSF
Ensure equal level playing MSs and NRAs
field
Simple, transparent and
fair arrangement
Symmetric and simple:
BRP and Aggregator
Keep current role and
responsibilities of BRP
Dr.-Ing. Manuel Sánchez Jiménez © European Commission 2015
EC and NRAs to ensure
regulatory framework
EC and NRAs to develop
MSs to ensure
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Incentives
RECOMMENDATION
Open and interoperable
standards for interfaces
Secure communication
infrastructure and
energy/Telco synergies
WHAT
Facilitate commercial
agreements for synergies
Use of flexibility by grid
operators to optimise
investments
WHO
MSs and NRAs to
support synergies
MS and NRAs to ensure
Incentivise grid
Incentives for OPEX and
operators to enable and CAPEX
use flexibility
NRAs and MSs to
incentivise grid operators
Improve price signals to
incentivise consumer's
response
Smart appliances for
end users
Impact of regulated prices, NRAs and MSs to create
favourable business
grid tariff structures, etc.
Incentives at early stage of
development
Dr.-Ing. Manuel Sánchez Jiménez © European Commission 2015
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Measurements
RECOMMENDATION
Standardised
measurement
methodology for
flexibility
WHAT
Allocation and reliability of
demand response
Dr.-Ing. Manuel Sánchez Jiménez © European Commission 2015
WHO
MSs to define
methodology
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Grid operation
RECOMMENDATION
Communication and
coordination for secure
grid operators
WHAT
WHO
- Access to flexibility
services and technical
data
- Exchange operational
data
Dr.-Ing. Manuel Sánchez Jiménez © European Commission 2015
EC and NRAs and
stakeholders to identify
actions needed
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