Optimal Coordination of Active Network Management Schemes and Balancing Services Market

Objective(s)

The key objectives of this work can be described as follows:

• To identify and define different optimal T&D coordinated ANM schemes, their associated technical and commercial requirements as well as compatibility with existing industry codes and regulatory frameworks;
• To develop test cases and evaluate the ability of DER to participate in the ANM functions of the distribution system or in whole system balancing actions in a coordinated manner;
• To identify and define solutions that will optimize the coordination of ANM schemes with the balancing services market;
• To develop a delivery plan for deployment of the solutions;
• To disseminate findings and recommendations to other network licensees.

Problem(s)

The installed capacity of Distributed Generation (DG) has increased to 31 GW in 2018 and is set to rise to a level of 38 – 69 GW by 2030 across all FES scenarios. This significant growth of DG together with the development and adoption of smart grid technologies means that Distribution Network Operators (DNOs) need to more actively manage flows on their networks. DNOs have been introducing Active Network Management (ANM) schemes to manage network assets, generation and demand dynamically to increase the utilisation of network assets without breaching operational limits, reduce the need for reinforcement, speed up connection timelines and reduce costs. The number and type of ANM schemes is set to increase over the coming years as much more DG wants to connect to increasingly constrained networks.

Assets connected to ANM schemes can be controlled to manage distribution network constraints. Without coordination between the ESO and DNOs, there is potential for ANM schemes to counteract the ESO’s balancing actions or to cancel out the effect of system services procured from Distributed

Energy Resources (DER). This could lead to increased costs to the consumer and risk to security of supply if system services cannot be delivered when required. In addition, ANM systems need to be designed and operated in a coordinated manner during whole system emergency situations.

Method(s)

The project will be structured into six distinct work streams (WS):

WS1: Identify and review current ANM schemes on the transmission (e.g. Generation Export Management Scheme (GEMS) used in Dumfries and Galloway) and distribution networks and their impact on T&D coordinated activities. Analyse their associated technical and commercial requirements.

WS2: Develop test cases and high-level assessment of potential benefits of these test cases. Evaluate the ability of DERs to participate in ANM activities and develop network case studies reflecting different types of ANM schemes and the potential synergies and conflicts of DERs participating in ANM activities.

WS3: Identification and definition of solutions to optimise coordination of ANM schemes and ESO balancing services market

WS4: Perform a cost benefit analysis of the coordinated ANM case studies through modelling and simulation. Identify limitations imposed by commercial frameworks.

WS5: Delivery plan for practical deployment of feasible solutions. Analysis of the simulated case studies, synthesis of key findings and identification of whole system principles of operation and control hierarchies for T&D.

WS6: Identify and develop a set of recommendations, produce a report and disseminate findings.

View the project webinar below:

• Scope

  National Grid’s Future Energy Scenarios (FES) and System Operability Framework (SOF) show that the installed capacity of Distributed Generation (DG) has increased to 31GW in 2018 and is set to rise to a level of 38 – 69GW by 2030 across all FES scenarios. This transmission and distribution, have the need and the means to more actively manage flows on their networks. Thus, network operators are introducing Active Network Management (ANM) schemes to manage network assets, generation and demand dynamically in real time to increase the utilisation of network assets without breaching operational limits, reduce the need for reinforcement, speed up connection timelines and reduce costs.

  As network operators (most notably Distribution Network Operators (DNOs)) start taking a more active role in managing flows on their networks, greater collaboration and coordination with the Electricity System Operator (ESO) is required to efficiently manage the overall power system.

  The SOF shows that there is an increasing number of constraints on DNO networks that are likely to be managed by ANM systems over the next five years. Meanwhile, wider access to the Balancing Mechanism has been introduced and the ESO is increasingly procuring ancillary services from Distributed Energy Resources (DER). Without coordination of activities between the ESO and network operators, there is potential for:

  • ANM schemes to counteract the ESO’s balancing actions or to cancel out the effect of system services (e.g. STOR, DSR) procured from DER
  • DER connected to ANM arrangements to be unnecessarily blocked from participation in balancing services markets

  Both could lead to increased costs to the consumer and pose a risk to security of supply if system services are not delivered when required.

   

  Opportunity for optimal coordination between ANM approaches and balancing services

  To this end, there is a need to deliver an optimally coordinated design approach between ANM schemes and balancing services markets. It is critically important to ascertain and understand the synergies and conflicts associated with the potential for ANM schemes in networks inhibiting the delivery of ESO system support services through DER. Hence, this project proposes to:

   

  • Engage collaboratively with the ESO and the DNOs to understand:

  1. The range of existing ANM schemes and volumes of DER connected downstream of constraints managed by ANM schemes; and
  2. The restrictions placed on the participation in balancing services markets of DER connected behind constraints which are managed by ANM schemes under existing commercial arrangements.

  • Identify issues which could arise from the participation in balancing services markets of DER connected downstream of constraints which are managed by ANM schemes;
  • Evaluate the potential for DER connected downstream of an ANM managed constraint to participate in balancing services markets in a coordinated manner;
  • Identify and define different approaches to coordinating ANM schemes with balancing services markets and their associated technical and commercial requirements;
  • Quantify and assess the costs and benefits of the different approaches to coordinated ANM schemes from the perspective of whole system techno-economic efficiency to determine the optimal coordination approach(es);
  • Identify a way in which that optimal coordination approach can be delivered through identification and proposed resolution of limitations and barriers in the existing approaches and commercial frameworks; and
  • Develop whole system principles of operation and control hierarchies for the procurement of system services from DER in order to inform the development of best practice guidelines for delivering whole system coordination in respect of other services procured in the future.
• Success criteria

  Success criteria for this project includes the following:

  • Identification of the optimal T&D coordinated ANM schemes and their technical and commercial requirements;
  • Identification and quantification of the costs and benefits from holistic T&D coordinated ANM approaches;
  • Evaluation of the capability of DER to participate in ANM schemes on the distribution system and to contribute to whole system balancing actions in a coordinated manner performed and results and analysis verified with project partners;
  • Framework for the techno-economic balance across distribution network management and whole system support service requirements produced;
  • Solutions to optimise coordination of ANM schemes and balancing services market developed;
  • Completion of real world consideration across an ANM design case study, including identification of barriers and limitations with integrating the ANM design with current commercial frameworks. Complement with simulation of potential solution performance; and
  • Successful dissemination of acquired knowledge to the relevant industry sectors, including stakeholder workshops as appropriate.
• Potential for new learning

  The learnings from this project will be applicable to all DNOs as efficient methods for coordination of ANM schemes and balancing services will be developed. If applied, these learnings will lower costs for consumers, for reasons already outlined. The successful implementation of learnings would also promote further ANM rollout, facilitating more efficient connection and utilization of DER.

• Documents and links

  NIA Project Registration and PEA Document

  WS1 & WS2 Report: Review of Current ANM Schemes and Development of Test Cases

  WS3 Report: Identification of Solutions

  WS4 Report: Technical & Cost Benefit Analysis of the Nominated Test Cases and Respective solutions

  WS5 Implementation plan: Resolving conflicts between active network management and balancing services

  WS6 Report: Project learnings dissemination

  WS6.2 Report: Broader application of learnings

  NIA Project Close Down Report 

• Monthly updates

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