Stochastic optimisation-based valuation of smart grid options under firm DG contracts

Under the current EU legislation, Distribution Network Operators (DNOs) are expected to provide firm connections to new DG, whose penetration is set to increase worldwide creating the need for significant investments to enhance network capacity. However, the uncertainty around the magnitude, location and timing of future DG capacity renders planners unable to accurately determine in advance where network violations may occur. Hence, conventional network reinforcements run the risk of asset stranding, leading to increased integration costs. A novel stochastic planning model is proposed that includes generalized formulations for investment in conventional and smart grid assets such as Demand-Side Response (DSR), Coordinated Voltage Control (CVC) and Soft Open Point (SOP) allowing the quantification of their option value. We also show that deterministic planning approaches may underestimate or completely ignore smart technologies

Strategic distribution network planning with smart grid technologies

This paper presents a multiyear distribution network planning optimization model for managing the operation and capacity of distribution systems with significant penetration of distributed generation (DG). The model considers investment in both traditional network and smart grid technologies, including dynamic line rating, quadrature-booster, and active network management, while optimizing the settings of network control devices and, if necessary, the curtailment of DG output taking into account its network access arrangement (firm or non-firm). A set of studies on a 33 kV real distribution network in the U.K. has been carried out to test the model. The main objective of the studies is to evaluate and compare the performance of different investment approaches, i.e., incremental and strategic investment. The studies also demonstrate the ability of the model to determine the optimal DG connection points to reduce the overall system cost. The results of the studies are discussed in this paper

Value of thermostatic loads in future low-carbon Great Britain system

This paper quantifies the value of a large population of heterogeneous thermostatically controlled loads (TCLs). The TCL dynamics are regulated by means of an advanced demand side response model (DSRM). It optimally determines the flexible energy/power consumption and simultaneously allocates multiple ancillary services. This model explicitly incorporates the control of dynamics of the TCL recovery pattern after the provision of the selected services. The proposed framework is integrated in a mixed integer linear programming formulation for a multi-stage stochastic unit commitment. The scheduling routine considers inertia-dependent frequency response requirements to deal with the drastic reduction of system inertia under future low-carbon scenarios. Case studies focus on the system operation cost and CO2 emissions reductions for individual TCLs for a) different future network scenarios, b) different frequency requirements, c) changes of TCL parameters (e.g. coefficient of performance, thermal insulation etc.)

Benefits of demand-side response in providing frequency response service in the future GB power system

The demand for ancillary service is expected to increase significantly in the future Great Britain (GB) electricity system due to high penetration of wind. In particular, the need for frequency response, required to deal with sudden frequency drops following a loss of generator, will increase because of the limited inertia capability of wind plants. This paper quantifies the requirements for primary frequency response and analyses the benefits of frequency response provision from demand-side response (DSR). The results show dramatic changes in frequency response requirements driven by high penetration of wind. Case studies carried out by using an advanced stochastic generation scheduling model suggest that the provision of frequency response from DSR could greatly reduce the system operation cost, wind curtailment, and carbon emissions in the future GB system characterized by high penetration of wind. Furthermore, the results demonstrate that the benefit of DSR shows significant diurnal and seasonal variation, whereas an even more rapid (instant) delivery of frequency response from DSR could provide significant additional value. Our studies also indicate that the competing technologies to DSR, namely battery storage, and more flexible generation could potentially reduce its value by up to 35%, still leaving significant room to deploy DSR as frequency response provider

What is the target battery cost at which Battery Electric Vehicles are socially cost competitive?

Battery electric vehicles (BEVs) could be key to decarbonizing transport, but are heavily subsidized. Most assessments of BEVs use highly taxed road fuel prices and ignore efficient pricing of electricity. We use efficient prices for transport fuels and electricity, to judge what battery costs would make BEVs cost competitive. High mileage, low discount rates and high oil prices could make BEVs cost competitive by 2020, and by 2030 fuel costs are comparable over a wider range. Its contribution lies in careful derivation of efficient prices and the concept of a target battery cost

Economically efficient distribution network design

Decarbonisation of electricity sector, potential increase in electricity demand driven by incorporation of segments of heat and transport sectors, and conditional asset replacement drive the desire for cost-effectiveness of the use of existing assets and use of non-network solutions. A Working Group is tasked to review present and, if needed, propose a new security of supply standard. This study reports on the part of work carried within review. It describes drivers and objective for review, used analytical methodology, and relevant drivers. The results of case studies carried out on illustrative high-voltage networks topology show breakeven value of lost load and economically efficient degree of redundancy for different values of drivers. The study concludes with the key findings of the study