2007 APEX Conference
This presentation is the property of its rightful owner.
Sponsored Links
1 / 53

2007 APEX Conference Paris, October 16, 2007 PowerPoint PPT Presentation


  • 92 Views
  • Uploaded on
  • Presentation posted in: General

2007 APEX Conference Paris, October 16, 2007. SESSION 3: How to integrate renewable energy in the markets Wind power. Maria-Luisa Huidobro President. TABLE OF CONTENTS. Wind power and energy evolution in the world and in Spain Spanish regulation on power production in the special regime

Download Presentation

2007 APEX Conference Paris, October 16, 2007

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


2007 apex conference paris october 16 2007

2007 APEX Conference

Paris, October 16, 2007

SESSION 3: How to integrate renewable energy in the markets

Wind power

Maria-Luisa Huidobro

President


Table of contents

TABLE OF CONTENTS

  • Wind power and energy evolution in the world and in Spain

  • Spanish regulation on power production in the special regime

  • Wind power participating in the day ahead and intra-day market

  • Relevant market data

  • Conclusions


Wind power and energy evolution in the world and in spain

Wind power and energy evolution in the world and in Spain.


World installed wind power gw

WORLD INSTALLED WIND POWER (GW)

Source: GWEC, EWEA and AEE


Allocation by countries installed wind power in 2006 gw

ALLOCATION BY COUNTRIES. INSTALLED WIND POWER IN 2006 (GW)

Source: GWEC, EWEA and AEE


2007 apex conference paris october 16 2007

INSTALLED POWER IN THE SPECIAL REGIME IN SPAIN AND FORECAST UNTIL 2010 (MW)

Source: Renewable Energy Plan


Recent forecasts from the ministry of industry tourism and commerce

RECENT FORECASTS FROM THE MINISTRY OF INDUSTRY, TOURISM AND COMMERCE

  • The forecasts of the Secretary General of Energy, aim at:

    • 35,000 MW in 2020 and

    • 44,000 MW in 2030.

  • In addition, “during the following 10-years period, the renewable energy will be able to compete without premium”.


Spanish regulation on power production in the special regime

Spanish regulation on power production in the special regime.


2007 apex conference paris october 16 2007

KINDS OF FACILITIES

  • Cogeneration and waste energy.

  • Renewable energy:

    • Group b.2Wind power.

    • Group b.2.1Windmills onshore.

    • Group b.2.2Windmills offshore.

  • Waste energy with energy value.

  • Installed power per unit must be < 50 MW.


2007 apex conference paris october 16 2007

ADMINISTRATIVE COMPETENCES

  • Installation licence corresponds to regional authorities.

  • Nevertheless, this competence is of the State Government when:

    • The installed power is > 50 MW.

    • Its location affects more than one Region.

    • It is located offshore.

  • Regulated price corresponds to the State Government:

    • Fix price applied to wind energy.

    • Premium over the market price:

      • Wind power onshore: Fixed by the Government.

      • Wind power offshore: Established by auction.


2007 apex conference paris october 16 2007

ACCESSING THE NETWORKS

  • Priority for accessing the transmission and distribution network.

  • Mandatory guarantee to be applied when accessing the transmission and distribution network:

    • 20 €/kW for wind power facilities.

  • Once the wind power facility starts up, the guarantee is cancelled.


2007 apex conference paris october 16 2007

REQUIREMENTS APPLIED TO WIND POWER FACILITIES (I)

  • Adscription to a generation control centre, as a dispatch centre connected to the system operator:

    • Producer.

    • Special dispatch in the system operator.

  • All the facilities with capacity > 10 MW should be connected to a control centre or establish by itself a control centre.

    • Information will be transmitted to the system operator and instructions to control centre will be executed in real time.

    • This obligation will be a necessary condition for the perception of the tariff or the premium.


2007 apex conference paris october 16 2007

REQUIREMENTS APPLIED TO WIND POWER FACILITIES (II)

  • The wind facilities will have to fulfil certain response requirements when a voltage dip.

    • This requirement will be a necessary condition for the perception of the tariff or the premium:

      • A transitory period is established until the 1st of January of 2010 without penalty, for the existing facilities before the Royal Decree is in force.

      • A transitory period is established for the facilities previous to 1 of January of 2008, during a maximum term of 5 years, for maintaining the continuity of supply, receiving a complementary income of 0.38 c€/kWh.


2007 apex conference paris october 16 2007

SELLING THE WIND ENERGY

  • The wind energy producer has two options:

    • To sell the wind energy at a fix regulated tariff equal for all the hours (option a).

    • To bid in the organized market, through the system of auctions managed by the market operator, to establish a bilateral contract, or a forward contract (option b).


Option a to sell at a regulated tariff

OPTION A: TO SELL AT A REGULATED TARIFF

  • The wind power producer communicates the day ahead schedule to the market operator:

    • The auction system managed by the market operator considers this schedule as a bid at null price.

    • The schedule can be communicated directly or through a representative.

  • Producers can send bids also to the intra-day market

  • The wind power producer is paid by:

    • The market operator for the amount that corresponds to daily and intra-day market.

    • The system operator by the amount that corresponds to the ancillary services and deviations.

    • The Energy Regulatory Commission for the rest of the fix price of the tariff. This part of the retribution is paid until 2009 by the distributors.


Option b to sell in the market i

OPTION B: TO SELL IN THE MARKET (I)

  • The wind power producer send the bids for the day ahead market to the market operator:

    • The bid can be sent directly or through a representative.

  • Producers can also send bids to the intra-day market.

  • The price is paid to the wind power producer by:

    • The market operator for the amount that corresponds to daily and intra-day market.

    • The system operator by the amount that corresponds to the ancillary services and the deviations.

    • The Energy Regulatory Commission for the premium. This part of the retribution is paid until 2009 by the distributors.

  • Alternatively the power producer can sign a bilateral contract or operate through the forwards market.


2007 apex conference paris october 16 2007

OPTION B: TO SELL IN THE MARKET (II)

  • Negotiated price

  • +

  • Premium

  • +

    • Reactive energy complement

    • -

    • Deviations

    • +

    • Complement to help voltage dip problems

    • (applicable to wind facilities previous to 1/1/2008 and maximum 31/12/2013, that support voltage dip)


Requirements that the wind producers should comply

REQUIREMENTS THAT THE WIND PRODUCERS SHOULD COMPLY

  • In case the entity accessing the market on behalf of the wind producer is not a market agent, then the wind producer should be a market agent.

  • The entity accessing the market on behalf of the wind producer can send several bids for the set of facilities of the wind producer.

  • The dominant operators will only be able to act as representatives of their own facilities when their participation is greater than 50%.

  • The non dominant operators, will be able to act as representatives, until they reach a maximum of 5% of all the suppliers.


2007 apex conference paris october 16 2007

REGULATED TARIFF AND PREMIUM


2007 apex conference paris october 16 2007

LOWER AND UPPER PRICE LIMITS TO BE PERCEIVED BY WIND FACILITIES

Upper limit = 8.4944

Price to receive

Lower limit = 7.1275

Premium = 2.9291

Market price

If the price of the market plus the premium is below the lower limit, this limit will be received


2007 apex conference paris october 16 2007

THE REGULATED TARIFF AND THE PREMIUMS (I)

  • Parameters for establishing:

    • Regulated tariff option: IRR of 7%

    • Market option:

      • Lower and upper limits IRR of 7%, with a minimum of 5% and a maximum of 9% are the limits of the band.


2007 apex conference paris october 16 2007

THE REGULATED TARIFF AND THE PREMIUMS (II)

  • Updates:

    • Renewable: annual based on the RPI – 0.25 up to 31/12/2012 and from then RPI – 0.50.

  • Revisions. Every 4-years period:

    • Costs associated to each of the technologies.

    • Degree of participation of the special regime in the demand coverage.

    • Incidence in the technical and economic management of the system.


Royal decree 1028 2007 wind facilities offshore

ROYAL DECREE 1028/2007WIND FACILITIES OFFSHORE

  • The construction or extension of the electrical systems for wind generation offshore requires:

    • The production licence given by the Ministry of Industry regulated in the Royal Decree 1955/2000.

    • The licence to set the installation on the sea as public dominion by the Ministry of Environment (Law 22/1988, of 28 of July, relative to coasts).

    • The auction result licence that grants the applicant the zone reserve, regulated in the Royal Decree 1028/2007.


Wind power participating in the day ahead and intra day market

Wind power participating in the day ahead and intra-day market.


2007 apex conference paris october 16 2007

INSTALLED CAPACITY IN CCGT,COGENERATION AND WINDMILLS

Installed capacity in CCGT,

cogeneration and windmills

Current

(MW)

In the market

(%)

(*)

CCGT

16,657

100.0

Cogeneration

5,773

52.0

Windmills

12,323

95.5

(*)6,000 MW more are in testing period and will be in commercial operation in last quarter of 2007 and first quarter of 2008.


2007 apex conference paris october 16 2007

INSTALLED POWER IN SPECIAL REGIME AND ORDINARY REGIME WITH PREMIUM BIDDING IN THE MARKET ON SEPTEMBER 16th, 2007


Daily energy by production technologies january 2004 10 th october 2007

DAILY ENERGY BY PRODUCTION TECHNOLOGIESJANUARY 2004 – 10th OCTOBER 2007


2007 apex conference paris october 16 2007

TYPICAL BID OF A WIND POWER PRODUCER

  • Bid at 0 €/MWh to be matched.

  • Bid at a price different from 0 €/MWh with risk of none being matched


2007 apex conference paris october 16 2007

NUMBER OF MARKET PARTICIPANTS

  • Power producers in the Spanish power production market:

    • On October 11, 507 power producers are participating in the dayly and intraday markets.

      • Number of wind power producer facility owners than ere selling in the daily market: 3

      • Number of wind power producer facility owners that are selling in the daily market through units managed by other kind of agents (representative or seller agent): 212

      • Number of power producer agents without wind power facilities: 292


Prices and energy in the daily market 1 st january 2004 10 th october 2007

PRICES AND ENERGY IN THE DAILY MARKET1st January 2004 – 10th October 2007

MWh

c€/kWh


Prices in the spanish system in the daily market 1 st january 2004 10 th october 2007

PRICES IN THE SPANISH SYSTEM IN THE DAILY MARKET1st January 2004 – 10th October 2007

c€/kWh


The wind energy price in 2006

THE WIND ENERGY PRICE IN 2006

  • This participation of the wind energy in the electric market diminishes the price of the electricity due to:

    • The incorporation of the wind energy moves the market supply curve causing a lower price.

    • In addition, the wind production is greater in periods of low/medium prices, because the local winds take place in the periods of diurnal transition that in many cases does not correspond with the highest demand.

  • Wind price in the daily market: 48.01 €/MWh, is lower 4.96% to the arithmetic average price of the daily market (50.52 €/MWh)

  • Wind Price in regulated tariff: 72.73 €/MWh


Average price componenets of wind energy in 2006 mwh

AVERAGE PRICE COMPONENETSOF WIND ENERGY IN 2006 (€/MWh)

Market price components 91.01 €/MWh

Source: REE and AEE


Wind energy matched and marginal price 2004

WIND ENERGY MATCHED AND MARGINAL PRICE 2004


Wind energy matched and marginal price 2005

WIND ENERGY MATCHED AND MARGINAL PRICE 2005


Wind energy matched in the daily market and marginal price in 2006

WIND ENERGY MATCHED IN THE DAILY MARKET AND MARGINAL PRICE IN 2006


Special regime energy matched in the daily market and marginal price in 2007

SPECIAL REGIME ENERGY MATCHED IN THE DAILY MARKET AND MARGINAL PRICE IN 2007


2007 apex conference paris october 16 2007

MARKET ENERGY OF POWER STATION UNDER THE SPECIAL REGIME


Wind producers acting in the intra day market

WIND PRODUCERS ACTING IN THE INTRA-DAY MARKET

  • The wind producers are very active in the intra-day market:

    • As weather forecast is close to real time, the producers modify schedules to more accurate figures.

    • To solve the power production unavailability.


The forward contracts and the daily market

THE FORWARD CONTRACTS AND THE DAILY MARKET

  • The participation of the wind power producers in the daily market serves to them as a base to be able to take part in the CESUR (last resort supply), VPP auctions and the forward organized market, buying or selling the necessary amounts of energy to fulfil their compromises.


Incorporating offers into daily market

INCORPORATING OFFERS INTO DAILY MARKET

OMEL


Relevant market data

Relevant market data.


Installed power by technologies in 2006

INSTALLED POWER BY TECHNOLOGIESIN 2006 (%)


Energy produced by technologies in 2006

ENERGY PRODUCED BY TECHNOLOGIES IN 2006 (%)

Wind power production reached 8.5% in 2006 of the demand coverage. In 2007 a 12% is expected to be reached.


Energy produced in september 2006 2007

ENERGY PRODUCED IN SEPTEMBER 2006 & 2007 (%)


Installed power in the special regime in 2006

INSTALLED POWER IN THE SPECIAL REGIME IN 2006 (%)


Energy produced in the special regime in 2006

ENERGY PRODUCED IN THE SPECIAL REGIME IN 2006 (%)


2007 apex conference paris october 16 2007

DAILY WIND GENERATION IN 2006 (MWh)

On December 8th, 2006, a maximum in wind power production was achieved with an average daily energy of 159,291 MWh and an hourly energy of 8,010 MWh at 15:00 hours. This wind power production covered 23.3 % of the domestic demand

Source: REE and AEE


2007 apex conference paris october 16 2007

DAILY ENERGY PRODUCEDBY WIND POWER IN 2006 (%)

Source: REE and AEE


Wind energy sold at regulated tariff and in the market gwh

WIND ENERGY SOLD AT REGULATED TARIFFAND IN THE MARKET (GWh)


Conclusions

Conclusions.


Conclusions1

CONCLUSIONS

  • From 1994 to now, wind energy production have been growing in an uninterrupted way.

  • The price of the market plus the premium has been attractive enough to build 12,900 MW of installed wind power.

  • The management of the electric system has changed to integrate many small producers whose production will increase or diminish based on the wind regime.

  • Most of the wind energy producers have chosen the option of bidding into the market instead of the option of the fix price.


2007 apex conference paris october 16 2007

THANKS YOU FOR YOUR ATTENTION


  • Login