Identifying flexibility options 3 2 - WindNODE
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Best practice manual
Identifying flexibility options
1 How to make 2 Why flexibility 3 How to find flex-
money from is important ibility in the ter-
flexibility and how to tiary sector, indus-
Page 6 evaluate it try, mobility and
Page 14 neighbourhoods
Page 22Best practice manual | Identifying flexibility options 2 Contents Executive summary 3 Editorial 5 Flexibility in the electricity system 7 What to consider when increasing system flexibility 15 Clustering of flexible systems 19 Best practices 23 Tertiary sector (trade, commerce and services) Use of flexibility in a Schwarz Group-owned prototype store (Lidl/Kaufland) 25 Industry 1. Intelligent industrial load management in Berlin at Siemens 31 2. The ZIEL system developed by Fraunhofer IWU in cooperation with Deckel Maho Seebach 37 Mobility Intelligent vehicle charging at Berliner Stadtreinigung (BSR) 41 Neighbourhoods Intelligent energy management in Prenzlauer Berg, Berlin 47 Toolkit for identifying flexibility: checklist for flexible loads 53 Communicating about flexibility 55 Outlook 57 Abbreviations and acronyms 59 References 60 Publication details 61
3 Best practice manual | Identifying flexibility options
Executive summary
One of the main goals of the providers – in the identification and • In the industrial sector, Siemens
WindNODE project is to develop practical use of flexibility potential used modern measuring devices
innovative ways to accommodate in their business environment. The and an energy management
fluctuating electricity generation and experience that WindNODE partners system to record and categorise
demand. Working in various coordi- have gained in specific real-world industrial processes. This demon-
nation committees, project partners applications can serve as a resource strated that it is possible to deploy
reviewed the many valuable contri- for future flexibility providers in flexibility options in accordance
butions of individual subprojects and various branches and industries. with various optimisation goals,
compiled a manual of best practices such as the maximum integration
that can be used as a blueprint for Some highlights from our work at of renewable energy or compliance
applications outside WindNODE. WindNODE: with limits on electricity withdraw-
Two of these coordination commit- • At two branches of the Schwarz als and peak load time windows.
tees examined the overarching issue Group-owned supermarkets Marketing has already been carried
of flexibility from different angles. Lidl and Kaufland, tests were out on a test basis via the Wind-
Work by the Identifying Flexibilities performed to evaluate the potential NODE flexibility platform.
committee culminated in the manual for a battery storage system to • The Fraunhofer Institute for Ma-
you now hold in your hands, which relieve the grid by storing energy chine Tools and Forming Technolo-
provides guidance on the identifi- during times of peak production. A gy (IWU) collaborated with Deckel
cation and use of flexibility options. decentralised energy management Maho Seebach to develop the
In early 2021, a second coordination system in these showcase stores 'ZIEL' system for intelligent energy
committee – Flexibility, Market and could be used to control electricity and load management. The system
Regulation – published a report consumers – particularly cooling shifts the timing of energy-intensive
broadening this perspective: rather units – and thus respond to energy production orders depending on
than examining specific flexibility requirements by increasing or de- energy price and actively controls
options in individual companies, it creasing output. In 2019, the battery decentralised energy infrastructure
considers the available marketing storage system at the Lidl branch in factories. This allows manu-
options and their regulatory frame- in the district of Berlin-Schöneberg facturing companies to design
work in the WindNODE region was connected to day-ahead future-proof production methods
and beyond. and intraday markets, allowing it with the flexibility to respond to
to participate in fully automated changing energy needs.
'Best practice manual: identifying marketing. The storage system also • In the mobility sector, Berliner
flexibility options' provides acces- successfully provided flexibility Stadtreinigung (BSR) updated the
sible information to assist readers in the test run of the WindNODE energy software developed by
– especially prospective flexibility flexibility platform. WindNODE partner ÖKOTEC.Best practice manual | Identifying flexibility options 4 BSR used the software to analyse incentives to utilise these options the potential for flexibility opti- in practice. In the next phase of the misation in its fleet and create a energy transition, the main political prototype integrating this potential and regulatory challenge will be into regular operation. This made to reconcile profitable marketing it possible to reduce grid fees and options and suitable rules for identify three flexibility options: flexibility in the energy system with supply optimisation on the elec- the available supply and existing tricity market, on-site dynamic demand. This manual can help load management and use of the readers optimise the integration 50Hertz flexibility platform. and use of renewable electricity • In a Berlin neighbourhood equipped in a range of environments – from with smart building technology, residential neighbourhoods to the Borderstep Institute coop- factories – and adapt demand to erated with partners to test the the availability of local renewable market-oriented and grid-friendly energy. In this sense, 'Best practice control of a combined heat and manual: identifying flexibility power (CHP) plant and power-to- options' provides an important heat (PtH) elements. The building roadmap for the journey to an stock and local heating grid and intelligent energy system. heating network were used as ther- mal storage. Flexibility created in this process can be made available via the 50Hertz flexibility platform or on the energy market as a virtual power plant. This best practice manual elaborates on the exam- ples listed above. It also provides a checklist for identifying flexibility, which allows users to compare available flexibility options based on simple, readily identifiable evaluation criteria. But flexibility providers will still need adequate
5 Best practice manual | Identifying flexibility options
Editorial
WindNODE is charting a path In the context of the energy system, offers guidance on evaluating and
towards a future in which renew- the concept of flexibility has a fairly marketing flexibility options in
able energy meet almost all of our straightforward definition. It refers the existing legal and regulatory
electricity needs. Current estimates to the ability of elements in this framework. It supplements these
indicate that Germany derives system to accommodate fluctua- recommendations by looking ahead
more than 40% of its electrical tions in electricity generation and to the marketing opportunities for
energy from renewable energy consumption by adjusting output flexibility that may emerge in the
sources, primarily the wind and in response to an external signal. near future.
sun.1 That's more than the most By utilising flexibility, a factory can
optimistic among us would have shift a portion of its production to We believe that the issue of flex-
dared to hope just a few years ago. coincide with the movement of ibility must be examined in terms
This figure is calculated as a yearly strong winds across the country. A of its potential environmental and
average because of natural fluctua- supermarket can tap flexibility po- economic implications –
tions in the supply of wind and solar tential to heat and cool its facility a perspective that, we realise,
energy. On windless nights, there is ‘in advance’, using the mass of the diverges from the more sober,
very little renewable electricity, but building itself as thermal storage. business-oriented standpoint on the
on sunny, gusty days, wind and solar subject. The distance between these
power plants in some regions can In the WindNODE project, we have perspectives can be explained in
generate many times the amount of systematically identified flexibility part by the absence of effective,
electricity required. The risk of over- on the user (i.e. consumption) side in technology-neutral incentives for
loading the power grids can then companies from various segments companies to market flexibility in
be so severe that renewable energy of the economy: the tertiary sector ways that stabilise the system by
generation must be curtailed. (trade, commerce and services), relieving the burden on the grid.
industry, mobility, and household In the coming years, decision-
The volatility of green electricity and neighbourhood management. makers will face a major challenge:
generation points to the most chal- This best practice manual highlights how to design framework conditions
lenging aspect of further renewable some of these examples. Our goal is that harmonise these perspectives
energy expansion: system integra- to demonstrate that an oversupply while maximising benefits. The task
tion. We must develop the tools to of renewable electricity can be ahead, in other words, is to develop
ensure that the energy system can utilised in intelligent ways. economically feasible methods to
supply the right amount of electrical meet energy system needs.
energy in the right place at the But this manual doesn't just present
right time. As a general principle, successful case studies. It also We hope that you will join us in this
even systems with the capacity to introduces key concepts and pro- effort – as innovators in the identi-
generate large amounts of renew- vides tools to help readers answer fication of flexibility and as allies in
able energy must guarantee the basic questions about flexibility. the regulatory debate for successful
balance between electrical energy The examples featured in the main system integration. Above all,
generation and consumption at all sections of this manual outline the however, we hope you enjoy reading
times. Grid expansion and upgrades most important factors for readers this guide.
play a pivotal role in maintaining to consider when identifying
this equilibrium, but they are by no flexibility. They also provide con- The Authors
means the only significant factor. crete resources, including checklists Berlin, July 2020
Flexibility options, in particular, are and recommendations for internal
becoming an increasingly important communication, to assist in this
part of this process. process. In addition, this manual
1 At the time of publication, no reliable estimates were available for the share of renewable energy in Germany’s gross electricity consumption in 2019. Based on the
figures for the first three quarters of 2019, the Centre for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW) and the German Association of Energy
and Water Industries (BDEW) estimate the share at roughly 43% (BDEW, ZSW 2019). For more information, see https://www.bdew.de/presse/presseinformationen/
erneuerbare-decken-fast-43-prozent-des-stromverbrauchs/ (in German).Best practice manual | Identifying flexibility options 6
Applications and marketing opportunities for
flexibility in the electricity system
Types of generation and
load-side flexibility Marketing Purpose
Conventional
generation
Established Market
Day-ahead
Intraday
Over-the-counter (OTC)
Generation from
renewable energy
Storage system +
power-to-X
May be developed
in the future
Grid
Mobility Grid congestion management
Voltage stability
Reactive power
Industry
Neighbourhoods
Established System
Frequency stability
(reactive power or
balancing energy)
Tertiary sector7 Best practice manual | Identifying flexibility options
Flexibility in the
electricity system
The following pages introduce basic concepts related to
flexibility, beginning with a definition of the term. Individual
sections then describe specific applications of flexibility
in the electricity market, ancillary services and grid
congestion management.
What is flexibility? photovoltaics (PV), is an essential internal discussion process. This
step in decarbonising the energy definition guided our analysis of
In order to guarantee an affordable system. Natural fluctuations in the project findings.
and accessible energy supply, supply of these energy sources
systems must have the flexibility to demand greater flexibility in the ‘“Flexibility" refers to the ability of
adjust their electricity production electricity system. Flexibility options elements in the energy system to
or demand. Why is flexibility so are necessary to achieve each of accommodate fluctuations in elec-
important? For one thing, it can re- the energy industry's three goals tricity generation and consumption
store the required balance between for the energy supply: affordability, by adjusting capacity in response
production and consumption in the security and environmental sus- to an external signal. Elements that
event of short-term disruptions. It tainability. For all of these reasons, provide these abilities are referred
can also help relieve the load on flexibility is a key component of the to as “flexibility options". Wholesale
critical grid resources to maintain energy system. markets (day-ahead, intraday)
the transmission of electricity. In and measures to eliminate grid
the long term, flexibility will play No universal definition of 'flexibility' congestion can create demand for
a crucial role in achieving climate has emerged from the debate on flexibility. Flexibility can also be
change targets. That's because the future of the energy industry. requested on the balancing markets
expanding renewable energy, WindNODE participants developed or for the provision of additional
especially from wind power and the following definition in an ancillary services. The technicalBest practice manual | Identifying flexibility options 8
Fabian Stein
potential of a flexibility option in the
formerly of Green Cycle
energy system can be quantified by
Umweltmanagement GmbH
determining the following minimum
parameters: As part of the WindNODE project, the
• the value range of the change Schwarz Group is offering its battery
in capacity (positive/negative), storage system on the spot market. Its
• the duration of the change 252-kWH/100-kW battery is available as
in capacity and a flexibility option on the day-ahead
• the lead time before the change and intraday markets. Day-ahead fore-
in capacity. casts are used to develop plans for
The technical flexibility potential battery deployment, and over the following days, the output
of the energy system is based is regulated in accordance with these plans. This makes
on supply and demand. When it possible to use the battery at the precise times when
calculating the economic flexibility prices on the day-ahead market are low or even negative,
potential, it is important to consider which reflects an oversupply of renewable energy. Energy can
the costs and benefits achieved be stored in the battery until it is used at a later time.
by providing flexibility within the When spot market prices are high, the battery is discharged,
existing regulatory framework.’2 which means that the retail store draws less power from the
grid. This process has been in use since the
As this definition indicates, flexibility beginning of 2019 and has proved to be very
in the electricity system has multiple reliable, as trading on the day-ahead market
applications. It can be deployed to is fully automated.
compensate for short-term changes
in residual load on the wholesale
markets, to provide ancillary services purchased within the balance group required in the electricity system. In
and to eliminate grid congestion. must correspond to the total amount the German market area, short-term
The processes and measures consumed and sold. The market trading is initially conducted in the
necessary to manage these appli- participant tasked with managing day-ahead auction on the European
cations – some of which proceed in imbalances in each group – called Power Exchange, EPEX SPOT SE.
parallel – are explained in greater the balance responsible party (BRP) Bids for amounts of electricity can
detail in the following sections. – must submit a schedule in ad- be submitted on an hourly basis until
vance for every quarter-hour billing noon on the day before delivery.
Flexibility in the interval. This schedule provides infor-
electricity market mation on the amount of electricity Electricity providers use information
generated and consumed, as well about awarded bids to develop a
The primary objective of electricity as the amount purchased and sold plan for the dispatch of electricity
markets is to balance generation and to the relevant transmission system from their power plants. They must
consumption in the overall system at operator (TSO). The TSO serves as the submit a timetable communicating
all times. This is necessary in order to balance group manager (BGM) and these plans to the responsible TSO
maintain supply services. Supply and is responsible for transmitting energy by 2.30 p.m. Deviations from the
demand are aggregated for a given through the grid. day-ahead forecast can be offset
time period to preserve equilibrium. later on the intraday market. Like
Resources are then deployed as Electricity can be traded in various the day-ahead market, the intraday
cost-effectively as possible to align ways. Individual parties can create a auction makes it possible to trade
the supply with the demand. bilateral contract called an over- products at quarter-hour intervals,
the-counter (OTC) transaction. An- with bids accepted until 3.00 p.m. on
Regardless of the specific type of other possible approach is trading on the day before delivery. Schedules
marketing or service, actors must an electricity exchange. Long-term for each balance group can then
be assigned to a balance group trading is conducted on the futures be prepared in 15-minute blocks
to participate in the market. Each market; short-term trading is carried to maintain the balance between
balance group must restore balance out on the spot market. Due to the supply and demand.
in the best possible way within 15 higher temporal resolution of its
minutes. This means that the total pricing model, the spot market is an Actual delivery occurs 9–36 hours
amount of electricity generated and indicator of the amount of flexibility after the two auctions. (The precise
2
Cf. WindNODE (Ed.): Marktdesign, Regulierung und Gesamteffizienz von Flexibilität im Stromsystem – Bestandsaufnahme und Herausforderungen (April 2019), p. 12f.
Available online at https://www.windnode.de/fileadmin/Daten/Downloads/Publikationen/PRP_Marktdesign__Regulierung_und_Gesamteffizienz_von_Flexibil-
it%C3%A4t_im_Stromsystem.pdf (in German).9 Best practice manual | Identifying flexibility options
timing depends on the auction – on both the supply and demand it must be economically feasible to
and the traded product.) During side. When supply is matched with adjust production or consumption
this period, market participants demand on the hourly day-ahead – even if only for a period of several
receive updated forecasts of load market, flexibility can maintain the hours – despite the start-up and
and feed-in from renewable energy balance between the ‘non-shiftable’ shut-down costs or the expenses
sources, and power plant outages portion of the load on the one incurred from a shift in demand.
may occur. Continuous intraday hand, and the supply available
trading can compensate for the re- from fluctuating renewable energy If real-time output deviates from
sulting deviations. In contrast to the sources and must-run power plants day-ahead forecasts, the discrep-
auctions described above, tenders on the other. High market prices ancy can be eliminated on the
on intraday markets are awarded reflect a shortage of supply, while continuous intraday market. There
based on an order book. This means low or even negative prices reflect a are incentives for the BRP to do so,
that prices are not uniform for a surplus and encourage the provision including its contractual obligation
certain hour or quarter-hour, but of flexibility. The number of hours to adhere to the expected sched-
are calculated individually for each with high market prices declined ules at all times (‘balance group
successful trade. Exchanges close between 2011 and 2015 but has loyalty’) and the need to purchase
30 minutes before the settlement trended upward since 2016; hours balancing power to compensate for
time. Bids from the same control with negative prices have increased any shortages in the balance group.
area can be awarded until five over the entire period. Due to the
minutes before the delivery time. lead time of several hours, many The shorter window of time be-
power plants, storage facilities and tween bidding and delivery increas-
From the market structure de- switchable or shiftable loads may es the technical requirements for a
scribed above, it's clear that flexi- be able to offer flexibility on the given flexibility option. Restrictions
bility is a necessary component of day-ahead market. In order for a on production planning can also
both phases of short-term trading unit to provide flexibility, however, preclude certain flexibility options,
FCR aFRR mFRR
Activation time �� seconds � minutes �� minutes
Usually 5 MW Usually 5 MW
Minimum bid size ± � MW
(positive or negative) (positive or negative)
Weekly (Tuesday
Tender period for the following Daily Daily
week from (for the next day) (for the next day)
Monday–Sunday)
Time intervals 6 time slices of 6 time slices of
-
per day 4 hours each 4 hours each
Price per kW and Price per kW and
Compensation Price per kW
price per kWh price per kWh
Multiple marketing Possible, as long as technical requirements can be met
channels – even if the service is provided at the same time
Table 1: Properties of balancing power products according to 50Hertz et al. (2019b), VDN (2003), VDN (2007) and VDN (2009).Best practice manual | Identifying flexibility options 10
especially flexible consumption Dr Severin Beucker
systems, from participating in the Borderstep Institute
intraday market. In addition, contin- Today, we can already use the modular
uous trading demands greater effort generating units and storage systems in
from market participants than do residential neighbourhoods to provide
auctions. These factors reduce flexibility for balancing power on the
offers of flexibility with shorter lead order of several 100 kW per neighbour-
times. As a result, prices on the hood. With intelligent energy manage-
intraday market fluctuate more ment, this power can be integrated into
dramatically than those on the buildings without requiring residents to
day-ahead market. sacrifice comfort. Although this order of magnitude seems
small in comparison to other flexibility potentials, it is
Flexibility to provide highly significant because it opens up the building sector,
ancillary services which needs to meet strict climate targets. Over the next
few years, this potential could easily double or triple
The Energy Industry Act (EnWG) of thanks to the expansion of electromobility and related
7 July 2005 (section 11 ff.) obligates charging infrastructures. However, the
grid operators to ‘... operate, maintain likelihood that this opportunity will mate-
and optimise a secure, reliable and rialise depends on incentives that reward
efficient energy supply network with- flexible behaviour, and these are not yet
out discrimination...’ Grid operators offered on the energy market.
are responsible for tasks including
operations management, frequency
and voltage maintenance, and the and tenders begin at 5 MW.4 Ten- on the part of the BRP and grid
restoration of supply. For voltage dering takes place daily in six time operators. It has been facilitated
maintenance, the acceptable slices of four hours each. Prices are by various developments, including
voltage range must be maintained calculated per kW for the provision more sophisticated weather fore-
during normal operation (e.g. with of aFRR and mFRR, and per kWh for casting, the formation of an Inter-
reactive power), and excessive the actual retrieval. national Grid Control Cooperation
changes in the load on equipment (IGCC) to avoid opposing requests
must be preventable (with short-cir- Due to the market design for the for balancing power, and greater use
cuit power) in the event of a fault. In procurement of balancing power of the intraday market for balance
addition, for supply restoration, a suf- products, ancillary services are a group management. The number of
ficient number of power plants must key marketing channel for flexibility. providers has risen significantly at
be able to start up independently of The tendered FCR is set at a total of the same time. These factors have
an existing power supply. 3,000 MW for continental Europe led to increased competition and
and is distributed to the individual a sharp decline in service prices.
Different kinds of balancing services grid operators on a percentage In contrast, the price per kWh has
are activated to stabilise the grid.3 basis according to load. Since 2012, risen dramatically in the same time
These can be divided into three Germany has participated in an period. This is partly due to the
categories: frequency containment international FCR cooperation. Over inclusion of new technologies like
reserve (FCR), automatic frequency time, this led to the development of PtH and biogas plants. Although
restoration reserve (aFRR) and a joint call for tenders with Swit- these technologies can be offered
manual frequency restoration zerland, the Netherlands, Austria, at low costs per kW, they must be
reserve (mFRR). Activation times for Belgium and France. provided at high costs per kWh
these services range from 30 sec- because of the electricity prices to
onds to 15 minutes (see Table 1). FCR Although renewable energy (and be paid or the lack of compensation
is tendered on a weekly basis. The the fluctuating feed-in associated available under the EEG.
minimum bid size falls in a control with it) has expanded in Germany in
range of ±1 MW, and provision is recent years, the tendered capacity
compensated per kW. In contrast to for aFRR and mFRR has fallen. This
FCR, aFRR and mFRR are separated seemingly contradictory correlation
by positive and negative gradients, is the result of improved efficiency
3
Interruptible loads can also be used for this purpose. These loads are consumption units that can reduce their power consumption by a certain amount at the request of the
TSO. Quickly interruptible loads (SNL) are distinguished from immediately interruptible loads (SOL). Since these products are rarely requested, they are not discussed here.
4
Tenders can begin at 1 MW if only one offer is submitted per product and control area.11 Best practice manual | Identifying flexibility options
Flexibility for Andreas Hüttner
grid congestion Siemens AG
management
Here at Siemens, we've mainly focused
on identifying flexibility for the
Section 13 of the Energy Industry
purpose of peak shaving, i.e. to
Act (EnWG) specifies a cascade of
smooth out peak loads. But we still
measures that can be taken by TSOs
believe that a market-based mechanism
for operations management and
for increasing the use of flexibility
the maintenance of system security.
in grid congestion management is an
In general, operators must comply
effective tool to facilitate the in-
with the sequence prescribed by law.
tegration of renewable energy; it can
First, grid-related measures – par-
also provide another welcome source of revenue for flexible
ticularly network switches – are used
loads. That's why, as part of the WindNODE project, we
to relieve heavy loads on equipment,
participated in marketing flexibility for grid congestion
in accordance with sections 13(1)
management via the innovative WindNODE flexibility plat-
and 13a(1) EnWG. The TSO may then
form. The platform design, which enables users to carry out
order redispatch measures, which
day-ahead and intraday management, met our needs for pro-
reduce generation at power plants
duction planning. It was interesting to see that flexible
in certain areas while ramping up
loads are more valuable near grid bottlenecks. Of course,
production by a corresponding
some aspects of the platform can be improved: for example,
amount in others. If these measures
when bids are submitted, the platform operator should
are not sufficient, section 13(2) allows
consider block bids and conditions, such as the selection
the TSO to demand adjustments to
of three out of eight possible hours. This would increase
electricity feed-in and consumption.
the supply and the value of flexibility. It would also be
In conjunction with section 14(1)
interesting to reverse the pay-as-bid auction
of the Renewable Energy Sources
procedure so that users have an opportunity
Act (EEG), this provision also ex-
to react as a system operator to a price
plicitly applies to renewable energy
signal given by the platform.
systems, CHP plants and mine gas
plants. The procedure initiated by
the grid operator to reduce feed-in
from these systems is called feed-in under the provisions of the EEG congestion. Competition is also
management ('EisMan' or 'EinsMan'). and the Combined Heat and Power limited by the fact that units must
Act (KWKG) will be repealed on meet certain geographical criteria
Due to the existing grid topology this date, and a uniform redispatch to be considered for use. In the case
and the dependence of renewable regime (Redispatch 2.0) will be of redispatch measures, a unit's
generation capacity on supply, grid introduced in accordance with ability to relieve congestion on a
congestion is increasingly common sections 13, 13a and 14 EnWG. In specific line depends on the loca-
along the transmission lines that concrete terms, this means that, in tion of that unit in the grid. This gives
connect wind farms in the North to the future, renewable energy plants local actors a competitive advan-
load centres in the South. Thus far, and CHP plants with an installed tage over more distant participants
TSOs have mainly relied on large capacity of 100 kW and above will and over the TSO, which is reliant on
power plants and feed-in man- be required to provide their services a reduction in output.
agement to eliminate congestion. for redispatch, as will plants that
Much of the potential of small and can be remotely controlled by a To supplement the marketing
medium-sized flexible plants to grid operator at all times. Flexible channels for flexibility discussed
serve this function has remained consumers will still be excluded above (i.e. the electricity market
untapped. However, the amend- from this process. and provision of ancillary services),
ment to the Network Expansion WindNODE designed a flexibility
Acceleration Act (NABEG) that took In contrast to the wholesale and platform to develop and test the
effect on 13 May 2019 includes new balancing markets described in potential to utilise voluntary flexi-
requirements for grid congestion the previous sections, facilities bility potential for grid congestion
management, which must be are only reimbursed for additional management. This allowed providers
implemented by grid operators by costs incurred for grid congestion to offer flexibility voluntarily, with
1 October 2021. The regulations on management. As a result, there is no preference given to certain types
feed-in management for renewable no competition for the activation of technology. Flexibility options
energy plants and CHPs established of flexibility to eliminate or prevent were available to all grid operatorsBest practice manual | Identifying flexibility options 12
participating in the platform, and
implementation was coordinated
across voltage levels. This additional
potential was intended to enable
greater utilisation of renewable
energy production in cases of grid
congestion, demonstrating the prin-
ciple of ‘using instead of curtailing’.
The approach adhered to market
principles as closely as possible and
prioritised the identification of the
most cost-effective solution.5
5
For a more detailed description of platform features and a summary of results, see 'Flexibility, markets and regulation: insights from the WindNODE reality lab',
which was published in January 202113 Best practice manual | Identifying flexibility options
Flexibility generates more environmental and economic added value!
Gesamt Brutto-Inlands- Nettostromerzeugung Anteil erneuerbarer Energien am
stromverbrauch in D
Total gross domestic fossiler Kraftwerke
Net electricity in D
generation Brutto-Inlandsstromverbrauch
Share of renewable energy in
(in TWh) consumption in
electricity (in TWh)
from fossil-fuel power (gesamt) in Deutschland
gross domestic electricity(in TWh)
con-
Germany (in TWh) plants in Germany sumption (total) in Germany
(in TWh) (in TWh)
600
580*
574 574*** 574***
550
500
450
400
373***
350
336
326*
294
300
271*
250 245*
209* 211*
200
150
100
150
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Die Graphik veranschaulicht den perspektivi-
schen Bedeutungszuwachs von Flexibilität im
Energiesystem in Deutschland im Kern unter 2023
Ausstieg aus der 2030
Aktuelle NEP-Planun-
Rückgriff auf die
* BNetzA Entwicklung
2018, p. 5 von insbesondere Kernenergie ist erfolgt. gen dimensionieren das
** BNetzA 2019, p. 35
drei Größen: Nuclear energy Current grid develop-
Übertragungsnetz für
*** Bundestag
Im Zentrum steht printed
die sichpaper 19/13900, p. 26
verändernde has been phased ment plans dimension
**** Bundestag printed paper 19/13900, p. 26 einen EE-Ausbau von
Erzeugungssituation
(projected values) in Deutschland, das heißt out completely. the
65%transmission
für das Jahr 2030.
erstens sowohl der schrittweise
* Öko-Institut 2019, p. 21. Ausstieg aus der grid for a renewable
Offizielle Netzplanun-
** According tobis thezum
Kohleausstiegsgesetz
Jahr 2038 (bei (Coal Phase- energy
Kohleverstromung
out Act), use of lignite and hard coal for electricity gen fürexpansion of
einen EE-Aus-
gleichzeitigem
generation Ausstieg
will be aus der Kernenergie
discontinued by 2038 andbis 2050, 65% by the year 2030.
bau >65% existieren
zum Jahr 2023) undItzweitens
respectively. der schrittweise
is highly likely that natural gas and There are
aktuell currently
nicht.
Ausbauother fossil-based energy
der Erneuerbaren carriers
Energien bis (e.g.
zummineral oil) no official plans for
will still
Jahr 2050. Für bedieused for electricity
graphische generation,
Darstellung des although a renewable energy
the share of these fuels in total electricity generation
Kohleausstiegs werden die Empfehlungen
is unknown. The 123 TWh cited here is based der on the expansion >65%.
von dershare
Bundesregierung
of natural gaseingesetzten
and other fossil energy sources
in electricity
Kommission generation
„Wachstum, as of 2030. See
Strukturwandel undÖko-Institut
2019, p. 21.
Beschäftigung“ (Kohlekommission) – in
* BNetzA 2018, p. 9
gutachterlicher
** BNetzA 2019, Interpretation
p. 35 – für die
entsprechenden Stütz- undp.Zieljahre
*** Coalition agreement, 14
**** Section
dargestellt. 1(2)(1) EEG z.B. schwarze Kurve).
(AbsinkendeBest practice manual | Identifying flexibility options 14
580**** 580****
464****
420
Projected increase in the
importance of flexibility in
Germany’s energy system
130** 130**
2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050
The graph above shows the projected increase These trajectories are represented relative tion and an increase in renewable energy
in the significance of flexibility in the German to the change in gross domestic electricity generation. Flexibility may also become more
energy system based on changes in three consumption since 2017. There are different important as the costs of flexibility or the
indicators over time. The focus is on changes in perspectives on the projected change in gross marginal benefit of grid expansion declines.
power generation in Germany associated with domestic electricity consumption for the It is important to note that the confirmed grid
a gradual phase-out of coal-fired power gen- period shown. The German federal govern- development plan (NEP) for the transmission
eration by 2038 (with a simultaneous phase- ment assumes a gross domestic electricity grid is dimensioned to accommodate an
out of nuclear power by 2023) and a gradual consumption ‘slightly below the current level’ expansion of renewable energy to 65% of gross
expansion of renewable energy through the at least until 2030; other sources expect domestic electricity consumption by 2030.
year 2050. The graphical representation of the consumption to reach 748 TWh by 2030. The
coal phase-out (downward yellow curve) is determination of a specific projection for
based on an expert interpretation of the rec- gross domestic electricity consumption is
ommendations issued for the relevant years by irrelevant to the graph presented here if the
the Commission on Growth, Structural Change gross electricity consumption is assumed to
and Employment (‘Coal Commission’) estab- remain roughly constant or increase – but
lished by the federal government. Changes not decrease. If consumption remains nearly
in the share of renewables in gross domestic constant until 2030 (and from 2030–2050), the
electricity consumption over time (upward red growing importance of flexibility in the overall
curve) are shown based on the trajectories energy system in Germany is clear from the
established by law or set as political targets for shaded area between the two curves, which
the expansion of renewable energy by 2050. show a decrease in conventional genera-15 Best practice manual | Identifying flexibility options
What to consider
when increasing
system flexibility
Which units are best suited to flexibilisation, and how can
these be identified? Prospective providers can begin the
identification process by considering certain economic and
environmental factors.
Key economic factors particular technical systems through incurred beyond those associated
to consider when different marketing channels. Such with normal operation. Because
identifying systems outcomes vary on a case-by-case most technical units are already
for flexibilisation basis, depending on the technical purchased and operated to maxim-
system, market conditions and ise resource and process efficiency,
The previous sections summarised intended use. however, these flexibility options
what flexibility means in the context account for only a minor portion of
of the electricity system, as well as It is possible, however, to provide the available potential.
which marketing channels for flex- general guidance on the charac-
ibility already exist (flexibility in the teristics that make certain units Most of the available flexibility
electricity market and flexibility to more suitable for flexibilisation. potential will require prospective
provide ancillary services) and which The optimal units are technical providers to invest in developing or
could emerge in the future (flexibility installations or processes that refining current capabilities. Expe-
to manage grid congestion). can be deployed for the purposes rience has shown, however, that the
described above with no additional revenue currently generated from
When prospective flexibility pro- investment required for flexibilisa- ‘peak-shaving’ (i.e. smoothing out
viders consider whether to identify tion. This generally includes facilities peak loads) or marketing balancing
or use flexibility, business indicators and processes that can operate at power is generally not sufficient to
naturally play a decisive role. It's any time of day without negatively justify the required investment or
impossible to generalise about affecting the original purpose of use to provide an adequate economic
the specific revenue or return on (e.g. refrigeration or volume per day). incentive for flexibilisation.
investment that can be obtained for In such cases, no costs or losses areBest practice manual | Identifying flexibility options 16
At the same time, the flexibilisation suggest, the motivation for flexibility is thus the additional technology
of company facilities may produce providers to identify flexibility is required (e.g. for communication,
secondary effects that are eco- generally environmental in the short measurement and control).
nomically desirable. For example, term, and economic only in the
an increase in process flexibility can medium to long term (if at all). This is As the level of flexibility falls and the
boost the satisfaction and efficiency because providers assume that the resources required for regulation rise,
of employees by allowing them marginal utility of grid expansion will energy consumption by the tech-
to take more frequent breaks and decline beyond the target year 2030 nology itself becomes more likely
rearrange working hours and shifts. (65% renewable energy) or at the to offset the environmental value
This can have a positive effect on point when 2050 targets are reached added (e.g. emissions reductions).
key figures, including the number for the share of renewable energy in It's important to note, however,
of units produced. In this respect, gross electricity consumption (80% that in many cases the activation
increased flexibility can provide renewable energy). A reduction in of small amounts of flexibility has
direct qualitative advantages in the the costs of deploying flexibility yielded a positive environmental
workplace that indirectly contribute would bolster support for flexible balance, even at the household level.
to a company’s economic success. systems as a mechanism to benefit The mobilisation of this potential is
the overall system and to mitigate therefore not so much a technical
Irrespective of this potential benefit, climate change. This would increase challenge as an economic and
incentives should be offered to the economic value of flexibility organisational one: as outlined
encourage investment in control in the future, and there is much to above, current market structures do
technology (sensors/actuators). suggest that the utilisation of flexibil- not reward such measures, and price
Demands for such incentives are ity could generate economic profits advantages can't be passed on.
often accompanied by calls to (see the graph on page 12, ‘Projected
reform the existing system of taxes, increase in the importance of flexi- From an environmental perspec-
fees and surcharges.6 Incentives bility in Germany's energy system’). tive, a more complex question is
should be designed to target whether the mobilisation of flexi-
potential flexibility providers. In the From a systemic perspective, the bility increases or decreases energy
future, the same kinds of incentives crucial question today is whether consumption and whether this has
that have promoted energy- and identifying and activating flexi- positive or negative implications for
resource-efficient systems may be bility can create environmental the energy system or system-wide
used to promote flexible systems value added in the form of reduced CO2 reduction. In a fossil-based
that benefit the grid. This could life-cycle resource consumption and energy supply, multi-step energy
significantly increase the supply of emissions. From an environmental conversions (e.g. old night storage
usable flexibility. standpoint, companies that are heating technology: fossil-based
considering an increase in system primary energy sources → electricity
In order to identify flexibility in flexibility should focus any such → heat) are environmentally disad-
practice, both objective and sub- efforts on systems that can provide vantageous because they reduce
jective parameters of the load (e.g. flexibility for the energy system efficiency. This need not be the case
machine, repository and storage) with little to no additional resource in a supply based on renewable
must be recorded and evaluated. For consumption. energy, however, especially if peaks
an overview of technical parameters, in renewable energy production
please consult the ‘Toolbox for iden- These considerations indicate are only temporary or are limited to
tifying flexibility: checklist for flexible that flexibility options within certain locations or regions. Surplus
loads’ included in this manual. existing processes in industry, trade, renewable energy can then be used
commerce, services, the housing as negative balancing power for
Key environmental industry and the mobility sector have flexibility or storage (power-to-x),
factors to consider environmental benefits. As shown provided that the grid infrastructure
when identifying in the following examples (see ‘Best can accommodate it (‘using instead
systems for practices’ section), flexibility in of curtailing’). The loss in efficiency
flexibilisation existing units or processes can be resulting from energy conversion
tapped with little to no modification. processes does not have significant
As the economic considerations From a life-cycle perspective, the environmental effects, because the
summarised in the previous section only factor influencing net savings generation systems (wind turbines,
6
or a closer look at promising steps in this direction, see the WindNODE report 'Flexibility, markets and regulation: insights from the WindNODE reality lab', which
F
was published in January 2021.17 Best practice manual | Identifying flexibility options solar panels, etc.) ‘pay it back’ by fulfilling their primary purpose of electricity production. The surplus electricity is thus nearly CO2-neutral on the balance sheet. The conversion of this energy makes it unnecessary to curtail wind or solar generators in response to insufficient grid capacity or the need for voltage stabilisation. As a result, negative balancing power contributes little to CO2 emissions. Flexibility can also be used to provide positive balancing power. This occurs when units in the sectors listed above feed electricity into the grid during periods of low renewable energy production. Whether this practice makes environmental sense depends on the unit, its primary use and the type of energy source. If electricity is fed back into the grid from a battery storage unit, for example, the environmental assessment will depend on the share of battery resources available (allocated) for grid stabilisation and the environmental impact of this capacity (e.g. resource consump- tion, CO2 emissions) relative to that of possible alternatives (e.g. supply from biomass, fossil fuels or grid expansion). If, on the other hand, battery storage is used for other purposes as well (e.g. as an emer- gency power source or as a local energy supply for electric vehicles), it's important to clarify how much of the environmental impact is due to the provision of flexibility. Eval- uations of flexibility with positive balancing power are always more complicated, because a higher-level assessment is required to allocate environmental impacts.
Best practice manual | Identifying flexibility options 18
19 Best practice manual | Identifying flexibility options
Clustering
of flexible
systems
in the tertiary sector
(trade, commerce and services),
industry, mobility and
neighbourhoods
Measurable indicators help determine which systems or
processes in a company can be identified and activated as
flexibility. The following pages develop 'clusters of flexibility' by
examining relevant indicators in four specific areas: the tertiary
sector, industry, mobility and neighbourhoods. Clustering can
help plant operators gain important insight into
existing technical potential.
Tertiary sector (trade, processes must be conducted Commercial facilities often meet the
commerce and services) before flexibility can be identified technical requirements for coupling
and utilised. Nevertheless, certain infrastructure (e.g. electricity, heating,
Due to the heterogeneity among grid indicators make it possible to cooling). This enables conversion
users in the tertiary sector (including assess the suitability of commercial systems to provide flexibility through
trade, commerce and services), processes. These include the level cross-sector energy flows.
it's difficult to generalise about the of inertia in plants (e.g. temperature
flexibility of systems or processes. gradients of cooling systems), Industry
Specific load characteristics, specific methods of production (e.g.
installed technology and cumulative batch-based, workshop production) From an energy perspective, industri-
annual energy vary considerably and the general ability to plan al production sites always consist of
across branches, which means energy-consuming processes. components and systems of pro-
that intensive analyses of internal duction (e.g. processing machines),Best practice manual | Identifying flexibility options 20
production infrastructure (e.g. com- Mobility ed that the charging infrastructure
pressed air treatment) and building or vehicles can be controlled as
infrastructure (e.g. air conditioning). The electrification of public and needed and are connected to a
Increasingly, decentralised systems private vehicle traffic offers many suitable system for energy manage-
for energy conversion (renewable crucial opportunities to provide ment and optimisation.
energy) and storage must also be electrical flexibility. There is already
taken into account. The goal is to significant technical flexibility Neighbourhoods
control or regulate the entire system potential in the form of charging
of ‘industrial grid users’ in a (partially) capacities of up to 22 kW (in some By definition, measures for de-
automatic and flexible manner – cases even higher) and relatively mand-side integration (DSI)7 in
with support from market incentives small battery capacities of 50–100 households, residential buildings
– in order to create economic added kWh. Bidirectional charging, which and neighbourhoods must maintain
value. This is difficult, however, be- is often mentioned in this context, comfort, and residents shouldn't
cause variation at the different layers does not seem technically or notice any limitations. Storage
of existing automation pyramids economically attractive at present systems (thermal, electrical and
(from enterprise resource planning and is rarely offered on the market. building mass) and modulable
(ERP) through production planning Short- and medium-term flexibility energy generators (e.g. CHP unit or
and control systems to the field potential is created primarily by heat pump) can be used to meet
level) makes real system landscapes shifting the times at which (partially) this requirement. Because flexibility
extremely heterogeneous. As a result, discharged vehicle batteries are re- conflicts with energy efficiency in
relevant systems must be equipped charged. For this flexibility potential neighbourhoods, energy consump-
with adequate electrical and com- to be usable in practice, however, tion must be shifted in ways that will
munication technology. The creation it's necessary to define more or less optimise cost and comfort. Intel-
of these new networks allows the plannable time windows within ligent building networking (smart
‘factory of the future’ to function as which charging can be shifted. building technology) is an effective
an independent energy system. This makes it unlikely that ‘on- means to record and predict thermal
the-road charging’ or ‘in-between load behaviour as well as the behav-
Flexibility can be activated charging’ – such as at motorway iour of individual users. This makes it
throughout the industrial land- service stations, at bus stops (along possible to assess neighbourhoods
scape, not just in energy-intensive a regular bus route) or during a short and their possible contribution to
processes and technologies like break in shifts – will be suitable to flexibility (e.g. schedules). If many
container glass production, raw and provide flexibility. individual grid users are aggregated,
cement grinding, chlor-alkali elec- compensation effects may occur,
trolysis and raw material melting. In commercial fleets (and in bus and economic efficiency can be
Although these processes typically transport), on the other hand, the increased through central and
provide very large amounts of time intervals between vehicle de- optimally dimensioned equipment.
energy for load management, they ployments are longer, which offers
can often only be influenced as a better opportunities for flexible
whole due to their considerable charging between clearly defined
dependency on subprocesses. This shifts. This also applies to private
means that they can cover only vehicles that are seldom or never
a small portion of the necessary used outside of scheduled hours,
demand profiles. When considering such as overnight or while standing
the expected ‘multiplier’ effects of idle in the employer’s car park. The
energy use, it's important to give aim is to increase the flexibility of
particular weight to the many small vehicle charging while continuing to
and medium-sized manufacturing satisfy all usage requirements – and
companies that help maintain without restricting the mobility of
Germany's role as a business vehicle users.
centre. Because energy demand
is generally low, there is significant Especially in the aggregate, flexibil-
potential to aggregate and coor- ity that can be mobilised in this way
dinate the partial amounts that is considerable and, ‘in principle’,
require greater flexibility. can be achieved at low cost, provid-
7
emand-side integration is a term that encompasses demand-side management (i.e. external influence on load-side consumption) and demand-side response (i.e.
D
the consumer’s reaction to an external signal that is designed as an incentive). For the definition, see: Energietechnische Gesellschaft (ETG) im Verband der Elektro-
technik, Elektronik, Informationstechnik e. V. (VDE) (Ed.): ‘Demand Side Integration – Lastverschiebungspotenziale in Deutschland’, Frankfurt am Main 2012.21 Best practice manual | Identifying flexibility options
Characteristics of flexibility clusters
Tertiary sector (Energy-intensive) Mobility and Neighbourhood
Cluster (trade, commerce
industry transport sector solutions
and services)
No negative influ-
Compliance with
ence on production
customer require- Guarantee of
Prerequisites or manufacturing/ No adverse effect on
ments/fulfilment of required transport
for the provision fulfilment of cus- user comfort
customer preferenc- capacity
of flexibility tomer preferences,
es/no influence on
compliance with
customer experience
peak load limits
Previous Generally flexible Generally none
Generally none Generally none
market purchase of electric- (charging stations
(upstream power (upstream power
participation ity, in certain cases supplied by power
utilities) utilities)
balancing market utilities)
(Registered load
Typical Approx. 3–8 MWh
���–���� MWh profile measurement -
annual energy per household
(RLM) beginning at
consumption
100 MWh)
CHP plant or PV
Mainly non-control- system available as
lable loads, con- Controllable load Controllable needed, low gener-
System trollable or shiftable and generation units, charging stations, no ation by consumers,
engineering loads or processes (temporarily) auton- higher-level control, non-controllable
requirements available, emergency omous operation and benefits to loads, small storage
power generators possible as needed the grid systems for heat and
as needed electricity
Available to
Monitoring, Partially to widely
Energy monitoring Energy monitoring some degree via
control and available, but
and management and management networked central
information not designed for
available available heating systems
technology for flexibility and smart building
flexibility
technology
Creation and
Installation of
operation of a Installation of smart
Technical system-specific
mobility control building technology
measures smart meters and
- centre for the and smart meters,
required devices for intelligent
coordinated system-specific
control and
management of controls
networking
energy flows
Organisational
measures Transparent tracking Integration of flexibility Transparent tracking
-
required of energy flows into the value chain of energy flowsYou can also read
