13. Simon Koopmann, Team Leader Distributed

Energy storage operation
in virtual power plants and future grids
Smart Region Pellworm and the DeCAS Project
Simon Koopmann, RWTH Aachen University
10.03.2016
Simon Koopmann, RWTH Aachen University
Agenda
The Smart Region Pellworm Project
Optimization Model for Virtual Power Plants
Simulation Results Pellworm
Energy Management System and Demonstration Phase
Future Research: The DeCAS Project
10.03.2016
Simon Koopmann, RWTH Aachen University
2
Agenda
The Smart Region Pellworm Project
Optimization Model for Virtual Power Plants
Simulation Results Pellworm
Energy Management System and Demonstration Phase
Future Research: The DeCAS Project
10.03.2016
Simon Koopmann, RWTH Aachen University
3
 Lighthouse project in the energy storage research initiative
 Project duration: April 1, 2012 until June 30, 2015
Objective and Key Aspects of Smart Region Pellworm
Development and demonstration of a blueprint for
grid regions with storage systems, load flexibilities
and renewables
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Simulation and analysis of business models and operation
strategies for a hybrid storage system operated together with
renewables (Virtual Power Plant)
Installation and joint operation of a lithium-ion battery and a
redox-flow battery
Integration of existing flexible loads (electric storage
heaters) on household level into the portfolio
Installation of smart meters and measuring equipment at
selected MV/LV distribution transformers
Implementation of an energy management system for
scheduling and controlling all system components
Testing of operation strategies in demonstration phase
5
The Island Pellworm
Geographical
Utility‘s perspective
E.ON hybrid power plant
Area:
37,44 km²
Wind:
300 kW
People:
> 1000
Grid
connection:
2 sea cables (20kV)
Photovoltaics:
780 kWp
Households: > 600
Substations:
> 50 (20kV / 400V)
Lithium-Ion Battery:
District:
Consumption: > 7 GWh/a
560 kW / 1 MW and 560 kWh
Community: Pellworm
Generation:
Redox-Flow Battery:
Economy:
Highly distributed energy system with
more than 100 distributed generators
Nordfriesland
Tourism,
Agriculture
> 22 GWh/a
200 kW and 1600 kWh
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Agenda
The Smart Region Pellworm Project
Optimization Model for Virtual Power Plants
Simulation Results Pellworm
Energy Management System and Demonstration Phase
Future Research: The DeCAS Project
10.03.2016
Simon Koopmann, RWTH Aachen University
7
Business models comprise market, grid and
local supply oriented operation strategies
Business Model
BM1:
Multi-Market
Participation
BM2:
Local Grid
Support
BM3: Sustainable
Regional
Load Supply
BM4:
Multifunctional
Operation
Operation strategy
• Joint operation of fluctuating Renewables and storage
systems at different electricity markets:
 Day-ahead and Intraday market
Market player
• RES operator
• VPP operator
 Reserve markets (primary, secondary, tertiary)
• Primary goal is a support of distribution grid operation
(congestion mgmt., voltage support, loss reduction)
• In case of Pellworm: especially prevention of curtailment
measures from the upper 110kV grid
• Direct supply of local customers with energy from
regional renewable generation units
• Storage systems are operated to balance generation
and demand locally and prevent imports
• Combined strategy considering all options for operation
with the following prioritization:
1. Grid support (prevention of curtailment)
2. Regional load supply (reduction of imports)
3. Market participation
• Distribution
System Operator
• Retailer
• RES operator
• VPP operator
• Retailer
• RES operator
• VPP operator
RES = Renewable Energy Sources, VPP = Virtual Power Plant
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Business model analysis is based on simulations
with a VPP optimization model
Agenda
The Smart Region Pellworm Project
Optimization Model for Virtual Power Plants
Simulation Results Pellworm
Energy Management System and Demonstration Phase
Future Research: The DeCAS Project
10.03.2016
Simon Koopmann, RWTH Aachen University
10
VPP Technology Portfolio

E.ON Hybrid Power Plant (HPP)
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Energy capacity: 560 kWh
Charging power: 560 / Discharging power: 1000 kW
Redox Flow Battery (RFB)
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Photovoltaic power plant (PVP): 770 kWp
Lithium Ion Battery (LIB)
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Wind power plant (WPP): 330 kW
Energy capacity: 1600 kWh
Charging power: 200 kW / Discharging power: 200 kW
Electric storage heaters (ESHs)
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Total of 103 single units in 20 households
15 single family houses, 5 row houses
487 kW installed electric power
6-8 hours thermal storage
11
Results
Business Model 1 and 4 (Market) - Batteries, ESH, hybrid power plant
Annual profit contribution [k€/a]
200
150
100
Results
• LIB and RFB achieve
profit contributions from
market operation (mainly
control reserve)
Additional profit contributions compared to
reference case with isolated unit operation (no
VPP) needs to cover CAPEX and OPEX for
batteries and EMS
• Batteries support spot
market sales of WPP and
PVP
50
0
-50
LIB
RFB
WPP
no VPP
BM1
PVP
ESH
Total
BM4
• Joint operation in a local
VPP reduces costs for
ESH load supply (feed-in
from WPP and PVP is
used)
• Increase in VPP profit
contributions for BM4 is
not as high as for BM1
EMS = Energy Management System, WPP = Wind power plant, PVP = Photovoltaic power plant
All simulations are based on market data from 2014
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Results
Break-even investment costs – Batteries

Overall investment costs [k€]
LIB (560 kW/1000 kW, 560 kWh)
Reference
BM4
BM3
BM2
BM1
710
389
0 OPEX exceed profit
0contributions / cost savings
609
0
200
400
600
800
890
149
0 OPEX exceed profit
0contributions / cost savings
229
0
200
400
600
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Interest rate 8%
OPEX 20.000 €/a
Life time: 20 a (LIB), 25 a (RFB)
Reference investment costs:

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1000 €/kWh, 150 €/kW (LIB)
400 €/kWh, 1250 €/kW (RFB)
Results
Overall investment costs [k€]
RFB (200 kW, 1600 kWh)
Reference
BM4
BM3
BM2
BM1
Assumptions for battery evaluation
800
1000
 Market participation needed to reach
profitability (BM1, BM4)
 Needed investment cost reductions for LIB
lower than for RFB:
Reason: LIB energy to power ratio and
higher efficiencies favorable for control
reserve (most important source of
income)
13
Results
Multi-criteria evaluation - Batteries, ESH, hybrid power plant
Multi-market
participation
BM1: Market oriented operation strategy
with spot and reserve market participation scores best in
the economical dimension (profit contributions)
Market
BM1
BM2
Local grid
support
BM2: Grid focused operational
strategy sets benchmark in curtailment reductions (grid
dimension)
BM3
BM4
Sustainable
regional
supply
BM3: Isolated consideration of local load
supply is a dominated and thus an unattractive mode of
operation
Multifunctional
operation
BM4: Multifunctional operation
provides best trade-off among the three objectives
 Profit contributions in BM4 are still lower in
current market and regulatory framework
Environment
Grid
14
Agenda
The Smart Region Pellworm Project
Optimization Model for Virtual Power Plants
Simulation Results Pellworm
Energy Management System and Demonstration Phase
Future Research: The DeCAS Project
10.03.2016
Simon Koopmann, RWTH Aachen University
15
Energy management system concept and setup
16
Operational management
Operational management
Optimization
Forecast
 Schedules Storage + ESH
 Spot marktet (day ahead)
 Reserve market
Objectives
Schedules
ESH, storage
Forecasts
 Local consumption
 Distributed generation
Spot market
Scheduling ID (Intraday, 15min-4h)
Parameters
 Schedules Storage + ESH
 Spot marktet (day ahead)
 Reserve market
Schedules
ESH, storage
Forecasts
 Local consumption
 Distributed generation
Measurement
data
Schedules
Process
Business models
Scheduling DA (Day Ahead)
Technical restrictions
Dispatch (1min-15min)
17
Demonstration Phase – Results
Day-ahead
Operational management batteries – BM1
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Dispatch
Intraday
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Hierarchical operational
management with three
stages
Planning decisions are
based on forecasts
Dispatch stage shows
reaction to stochastic
control reserve calls
Intraday stage deviates
from day-ahead planning
stage
Reason: Unforeseen
reserve calls need to be
compensated to ensure
SoC limits of batteries
18
Conclusions of the project
Conclusions and lessons learned
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Energy storage operation for multiple applications (market, grid, local) is technically feasible
An economically feasible storage operation demands market participation; only grid focused
operation is not an attractive option
A multifunctional storage operation is a promising strategy to create an efficient trade-off solution,
but needs an adaption of the regulatory framework
Forecasts and forecast quality are major issues when portfolios include RES and need
improvement and future research
Continuation of Smart Region Pellworm
 Demonstration facilities:
The batteries are transferred into commercial operation by E.ON and Schleswig Holstein Netz AG
Integration into E.ON Virtual Power Plant to provide control reserve
 Research regarding operation strategies and optimized planning and management:
Continuation in several new research projects which enlarge scope (technologies, applications)
Agenda
The Smart Region Pellworm Project
Optimization Model for Virtual Power Plants
Simulation Results Pellworm
Energy Management System and Demonstration Phase
Future Research: The DeCAS Project
10.03.2016
Simon Koopmann, RWTH Aachen University
20
Future research: DeCAS Project
Smart Region Pellworm
Algorithms and models for optimized DER
operation planning and dispatch
IRENE / IREN2
Virtual Power Plant and Smart Grid
demonstration project
DeCAS: Demonstration of Coordinated Ancillary Services covering different Voltage
Levels and the Integration in Future Markets
 Planned project duration: April 1, 2016 until March 31, 2019
 ERA-Net Smart Grid plus initiative
 Objectives:
 Development of coordination approaches for ancillary services provided by
distributed energy resources across all voltage levels
 Integration and scale-up of existing Smart Grid demonstrators on different voltage
levels and with different technology portfolios
 Ensuring replicability and scalability of developed solutions
10.03.2016
Simon Koopmann, RWTH Aachen University
21
DeCAS Consortium
 Research institutions and industrial partners from four European countries
 Austria:
 Austrian Institute for Technology GmbH (consortium leader)
 Salzburg Netz GmbH
 Siemens AG Österreich
 Technische Universität Wien
 Finland:
 ABB Finland
 Germany
 Allgäu Netz GmbH
 Hochschule Kempten
 RWTH Aachen University
 Slovenia:
 University Ljubljana
10.03.2016
Simon Koopmann, RWTH Aachen University
22
DeCAS Project Setup
 DeCAS project setup
 ensures international
exchange
 enables analysis of
different regulatory and
market frameworks
 ensures replicability and
scalability of developed
solutions
 Innovation Cells
comprise national
demonstrators
 Exisiting smart grid
infrastructure as a
starting point for
DeCAS
10.03.2016
Simon Koopmann, RWTH Aachen University
23
Thank you for your attention!
Dipl.-Wirt.-Ing. Simon Koopmann
RWTH Aachen University - IFHT
Team Leader Distributed Energy Systems
+49 241 80 90146
koopmann@ifht.rwth-aachen.de
10.03.2016
Simon Koopmann, RWTH Aachen University
24